Aluminum price soars as China cancels tax incentive on exports
The export tax rebate was also removed for copper and lowered for some refined oil, solar, battery and non-metallic mineral products.
Russian aluminum producer Rusal has lost a lawsuit against global miner Rio Tinto that sought to win back access to its 20% share of the alumina produced at a jointly owned refiner in Queensland, an Australian Federal Court filing showed on Friday.
Australia responded to Russia’s 2022 invasion of Ukraine with wide-ranging sanctions, including a ban on exports of the aluminum raw material to Russia.
Shortly after the ban was imposed in March 2022, Rio Tinto took sole control of Queensland Alumina Ltd (QAL), sidelining Rusal and cutting its access to the refinery’s output. Rio owns 80% of the refinery and Rusal the remaining 20%.
“Rusal is disappointed in the outcome and is considering the court’s decision,” the company said in an emailed comment, adding that it had 28 days to file an appeal.
“It is necessary to emphasise that this decision does not deprive Rusal of the share ownership in the asset. It also does not affect current Rusal operations worldwide,” it added.
In the suit, Rusal’s Australian unit, Alumina and Bauxite Company (ABC), was seeking to restore its rights at QAL.
“Rio Tinto and QAL plan to continue to operate on this basis for as long as the sanctions continue,” a Rio’s spokesperson said after acknowledging the court decision.
Australia’s alumina export ban and suspended operations of a refinery in Ukraine prompted Rusal to seek more alumina in China and other countries to ensure adequate supply to its Siberian aluminum smelters in 2022.
In 2023 it bought a 30% stake in a Chinese alumina refinery to support the feed coming from its alumina assets in Russia, Ireland, Jamaica and Guinea.
(By Polina Devitt and Clara Denina; Editing by Mark Potter and David Goodman)
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