RIO TINTO LAUNCHES A TAKEOVER BID FOR ALL QAL SHARES

Multinational Rio Tinto has succeeded in gaining full control of the Queensland alumina refinery it shares with United Co. Rusal International PJSC, thus denying the Russian aluminum giant access to a vital source of raw material. A maneuver with which the company manages to obtain one hundred percent of QAL’s shares.

“As a result of the Australian government’s sanction measures, Rio Tinto has assumed 100% of the capacity and governance of Queensland Alumina until further notice,” the company notes.

Queensland Alumina (QAL) management had urged Rio to step in and take full control of the business after receiving legal advice that the operating structure could not meet Australia’s sanctions. However, when the sanctions are lifted, control will revert to the company’s former operating structure.

The crisis between Russia and Ukraine has already led to the disruption of Rusal’s supply of alumina, the main ingredient in aluminum, raising fears that it could maintain production levels at a time when world supplies are already tight.

Last month, Australia immediately suspended alumina exports to Russia, putting the company under enormous pressure. Rio Tinto had previously stated that it would follow all orders from Canberra and that it was in the process of ending its business ties with Russian companies. Rio has already tried to terminate agreements with Rusal’s Aughinish alumina refinery in Ireland, but due to QAL’s involvement, this was more difficult in Australia.