Rusal will boost feedstock self-sufficiency with the construction of an alumina plant over two phases for 400Bn roubles (US$4.8Bn).

Russian aluminium giant Rusal recently announced that it will develop four lines of alumina production capacity in the Baltic Sea port of Ust-Luga, Russia, totalling 2.4Mtpy. The initial phase will be commissioned in 2028 with a second phase comprising a similar capacity scheduled for completion by 2032.

Since Russia’s invasion of Ukraine, Rusal has faced disruptions to its aluminium raw material supplies. Alumina production was stopped at its refinery in Ukraine and Australia halted exports of alumina and bauxite to Russia. As a result, Rusal has increasingly turned to China to fill its feedstock void with trade data showing that China’s alumina exports to Russia surged from 1kt in 2021 to 843kt in 2022. Given aluminium’s strategic significance, Rusal has been keen to reduce its dependence on third-party feedstock by investing in integrated upstream capacity.

Rusal will source the bauxite for its alumina plant from mines which it owns in Guinea, which will necessitate additional investment in the country’s infrastructure. The company also operates alumina plants in Guinea, Ireland, Italy, Jamaica and Ukraine. These feed Rusal’s primary aluminium smelters, the majority of which, are located in Siberia.