Rusal Raises the Stakes: Acquires 50% of Indian Alumina Refinery in Phases

Russian aluminium giant Rusal has announced plans to acquire up to 50% of Indian owner Pioneer Aluminium Industries Limited of an alumina refinery in a multi-stage deal. The first phase is the acquisition of a 26% stake for $243.75 million, with subsequent phases to be finalized. The refinery, locat...

Russian aluminium giant Rusal has announced plans to acquire up to 50% of Indian owner Pioneer Aluminium Industries Limited of an alumina refinery in a multi-stage deal. The first phase is the acquisition of a 26% stake for $243.75 million, with subsequent phases to be finalized. The refinery, located in Andhra Pradesh, produces 1.5 million tonnes of alumina per year. The acquisition is consistent with Rusal's attempts to reduce reliance on third-party raw materials after losing 40% of its alumina supply from Australia's export embargo and shutdown of its Ukrainian plant. By having direct access to alumina, Rusal aims to stabilize the production margins and enhance its worldwide supply chain. The pact also involves a joint venture with Pioneer and KCap groups to supply bauxite and get alumina based on the percentage of shareholding. Source: Reuters, Mining.com