AUSTRALIA CANCELS BAUXITE AND ALUMINA EXPORTS TO RUSSIA

Commodities continue to be impacted by the war. Aluminum continues to rise after Australia banned alumina and bauxite exports to Russia. The export veto is intended to impact Russia’s aluminum production, which is 20% dependent on alumina from Australia.

The Australian government has banned with immediate effect the export of bauxite and alumina to Russian suppliers, following the ongoing invasion of Ukraine. In a statement issued by several Australian government ministries, Canberra noted that the move would partly inhibit Russia’s ability to produce its own aluminum, which is one of its main exports.

“Russia relies on Australia for almost 20 percent of its alumina needs,” they note from the Australian government. One of the largest operations affected by the ban is Queensland Alumina Ltd (QAL), in which Anglo-Australian mining giant Rio Tinto Group holds an 80 percent stake, while Rusal owns the rest.

To date, the Australian government has imposed half a thousand sanctions on more than 400 individuals and three dozen companies associated with Russian leader Vladimir Putin. The Australian government will donate 70,000 metric tons of thermal coal to Ukraine to help it produce the necessary energy.

In addition, in recent weeks, Australian coal mining entities have been inundated with requests for assistance from countries that once relied on Russian coal to help fill the gap opened by the sanctions.