Russian aluminum producer Rusal has filed a lawsuit against global miner Rio Tinto, to regain access to its 20% share of alumina produced at a jointly owned refinery in Queensland.
Key points:
- Australia banned the export of alumina and aluminum minerals to Russia in March
- Rio Tinto intervened and took sole control of the Gladstone refinery in April
- Russian aluminum producer Rusal argues that Rio breached its obligations by taking control
The lawsuit challenges Australia’s response to Russia’s invasion of Ukraine, which includes widespread sanctions against two Russian oligarchs linked to a Gladstone aluminum refinery.
Queensland Alumina Limited (QAL), in Gladstone, is a joint venture between Rio Tinto, which owns 80% of the product produced there, and the Russian company Rusal, which owns the remaining 20%.
But in April, Rio stepped in to take sole control of QAL, setting aside Rusal and cutting off access to the refinery’s alumina production, a compound from which aluminum is derived.
Rusal’s Australian unit, Alumina and Bauxite Company, said in a presentation to the Australian Federal Court that the circumstances necessary for Rio to intervene and take control did not exist and his actions were in breach of his obligations.
The QAL refinery in Gladstone operates at 80:20 a.m. between Rio Tinto and Rusal. (ABC Capricornia: Tobi Loftus)
The move from Rio to QAL came shortly after the world’s largest iron ore miner broke all ties with Russian companies over Ukraine’s invasion of Moscow.
Australia banned the export of alumina and aluminum minerals, including bauxite, to Russia in March.
In court documents reviewed by Reuters, Rusal’s subsidiary is asking the federal court to restore its rights to QAL and declare that there will be no breach of sanctions if its business continues there.
Rio declined to comment.
Rusal, the world’s second-largest aluminum producer, could not be reached immediately for comment outside of normal business hours.
Rusal was not the direct target of Australian sanctions, but Rio’s actions were triggered by sanctions on oligarchs Oleg Deripaska and Viktor Vekselberg, who hold 25.6% and 8% stake in Rusal, respectively.
In 2018 Rusal was covered by U.S. sanctions against Russian businessmen and companies.
Reuters