Rio Tinto Group plans to stop supplying bauxite and sourcing alumina from a United Co. Rusal International refinery in Ireland that’s a key supplier to Europe’s aluminum industry as the world’s second-biggest miner moves to sever ties with Russian companies.
Rio has an agreement to supply bauxite to Rusal’s Aughinish refinery in Ireland and then take an equivalent amount of alumina once its processed. Rio ships the alumina to both its own aluminum smelters in Europe and third-party producers. The refinery became a flashpoint for the global aluminum industry in 2018 when previous sanctions on Rusal fueled turmoil in metal markets.
Rio is in the process of stopping both shipments, according to a person familiar with the situation who asked not to be identified as the matter is private. It’s not yet clear when the shipments will stop as Rio looks to unwind existing contracts, the person said.
A spokesman for Rio declined to comment.
Rio said earlier Thursday that it was joining a growing list of companies cutting ties with Russia. The London-based miner also operates the Queensland Alumina Ltd. joint venture with Rusal, which holds a 20% stake. While Rio is evaluating its options regarding the partnership with Rusal, it said last week that it had the “appropriate structures” in place to ensure Queensland Alumina’s operations would not be disrupted.