Rusal Sues Rio Tinto to Restore Its Fair Share of Alumina Supply

SHANGHAI, Jun 6 (SMM) - According to foreign media reports on June 5, Rusal has launched legal proceedings against mining giant Rio Tinto Group, demanding to restore its due 20% alumina production share in the joint venture refinery in Queensland, Australia. According to foreign media citing Australian federal court documents, Rusal claimed that Rio Tinto did not have the right to fully control Australia's Queensland Alumina Ltd. It is a joint venture run by Rio Tinto, which owns 80% of the joint venture, while Rusal, the world's second-largest aluminium producer, owns the remaining 20% and is entitled to the same proportion of alumina output. After Russia launched a "special military operation" in late February, Australia has imposed continuous sanctions on Russia since March, one of which is to stop supplying alumina and bauxite to Rusal. Rusal claims that Rio Tinto's full control of the management of the joint-venture alumina refinery is ineffective, effectively depriving Rusal of its right to a corresponding share of the alumina supply, which is estimated to be around 750,000 mt per year.  In April, Rio Tinto cut off Rusal's production and management channels at the joint venture in response to Australia's ban on the export of alumina and bauxite to Russia. Rio Tinto said it would comply with all Australian government instructions. A Rio Tinto spokesman said in April: "Due to the Australian government's sanctions, Rio Tinto has assumed 100% of the capacity and management of Queensland Alumina Limited until further notice." Last year, the output of Rusal's alumina refinery in Russia could only meet 37% of demand from its aluminium smelting, and the rest of the alumina needs to be imported. The two largest suppliers are Ukraine and Australia.