Rio Tinto to Feed RUSAL with Alumina
Rio Tinto Aluminium that is a division of British-Australian Rio Tinto announced Thursday it sold 56.2 percent in Italian Eurallumina to Russia’s RUSAL. For RUSAL, the new asset will boost raw self-sufficiency up to 90 percent unless Swiss Glencor steps in. The latter has the right of first refusal for stocks of Eurallumina.
Rio Tinto Aluminium announced the sale of 56.2 percent in Eurallumina SpA, Sardinia, to Russia’s RUSAL in a deal, which budget hasn’t been officially disclosed but is estimated at $400 million to $500 million.
The alumina from Eurallumina will go to the aluminium works of RUSAL, representative of the Russian company said yesterday, specifying that the purchase will step up the own alumina output at RUSAL by 13 percent, i.e. the company’s requirements in raw will be met by more than 85 percent.
Before the deal with RUSAL, Eurallumina’s owners were Rio Tinto Aluminium (56.2 percent) and Swiss Glencor AG. The second owner, Glencore AG, may execute the right of first refusal for the Rio Tinto stocks, so even in RUSAL, they are yet unable to forecast further progress in the deal.
Glencor refused to comment yesterday.
www.kommersant.com
All the Article in Russian as of Aug. 18, 2006
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