Aughinish Alumina's fate discussed at ‘Brussels Summit on War’

The Deputy Governor of Ireland, (Tnaiste) Leo Varadkar and Minister of Finance, Paschal Donohoe in their talks about the Aughinish Alumina’s future exhibited the ownership of the refinery is under scrutiny and should be altered to change the course of business. All the European sanctions against its Russian owner could endanger the Co Limerick operations. Controlled by Rusal and its parent EN+, Aughinish is where the bauxite ore imported from other countries is put through an extensive process to extract alumina. From the break of the Ukrainian war one month ago until now Aughinish had somehow managed to avoid EU penalties.

But billionaire industrialist Oleg Deripaska sunk under sanctions by the UK (last fortnight) and the US (penalties clubbed from 2018) has now renounced the majority of his stakes in the organization.

Since it is a major supplier of alumina to European Countries for smelting into aluminium, Aughinish remarks the sanctions are causing more harm to its market in the West than Russia.

“The Government is keen that the plant will continue to operate,” the Department of Enterprise said in response to questions.

The process of segregating Aughinish Alumina from its mother body is under inspection since European leaders met at the ‘Brussels Summit on War’ to discuss the issue. American accounting firm Grant Thorton is carrying out a strategic review of the business which has had 400 employees and a payroll cost of about US$6.45 million in 2020. The possibility of excluding Rusal’s interest in Aughinish Alumina is still under surveillance and there has been no reciprocation from the concerned officials whether any change of ownership might take place. Emails to designated representatives were not entertained; neither did anyone from Aughinish Alumina prefer to talk. A senior Aughinish figure hung up the telephone when asked for details.

“There has been ongoing engagement between the Government, IDA Ireland and the company, including a meeting with the Tánaiste and Minister Donohoe,” the department said.

“The department and its agencies continue to assess the implications of recent developments and are closely monitoring the situation. The department understands the parent company is undertaking a strategic review to protect its operations.”

Grant Thornton said: “Due to professional confidentiality we are not in a position to confirm or deny any client engagements.”

On Monday, Varadkar and Donohoe met Aughinish Refinery officials making the first attempt at sorting problems within the community. Eventually, the company was on the same page as these political leaders.

If it is placed under new ownership, will the Irish Bank come to the rescue of Aughinish Alumina? The question has been circulating in the Limerick region. The employees at risk have nothing to do with the conflict. War can bring consequences and disaster but human beings must find a way to cope and survive. There are craftsmen, workers, daily labourers who live by the produce of the Refinery and if it decides on something, they have the absolute right to know it.

As there are reports of 30,000 tonnes of alumina imported to Siberia from China’s port, Rusal continues to maintain silence. Chinese traders are in extreme secrecy of this entire transaction.

Being sanctioned in 2018, the company had to seek Chinese help in the past as Russian officials had to go to China on a quest to seek potential alumina and aluminium market in the Asian sector.