Russia’s Rusal launches legal action against Rio Tinto over alumina refinery-report

SYDNEY (Reuters) – Russian aluminium producer Rusal has launched authorized motion in opposition to Rio Tinto in search of to revive entry to its 20% share of the alumina produced at a jointly-owned refiner in Queensland, Australian media reported on Sunday.

Rusal alleged Rio had no proper to take full management of Queensland Alumina Ltd (QAL) following Australia’s sanctions on Russia over its actions in Ukraine, The Australian newspaper mentioned in a report citing filings within the Australian Federal Court docket.

Rio declined to touch upon the report whereas Rusal couldn’t be instantly reached.

QAL is an alumina refinery joint-venture positioned in Gladstone in Australia’s Queensland state. Rio owns 80% of the refinery, whereas Rusal, the world’s second-largest aluminium producer, owns the remaining.

Rusal argued Rio invalidly triggered contractual provisions to take management of QAL, successfully stripping its proper to its proportional share of the output from the refinery, value about 750,000 tonnes of alumina annually, the report mentioned.

Rio in April lower Rusal’s entry to manufacturing and administration on the refiner below an Australian ban in opposition to exporting alumina and aluminium ores, together with bauxite, to Russia.

It additionally positioned sanctions on Russian billionaire and former president of Rusal, Oleg Deripaska, who holds a stake within the refinery.

(Reporting by Renju Jose; enhancing by Diane Craft)