Global mining giant Rio Tinto assures to detach all bonds with Russian firms, QAL agreement under scanner

The world's second-largest metals and mining company, Rio Tinto, has initiated a crucial review of its partnership agreement with Rusal, the Russian aluminium giant for Queensland venture as it looks to cut off all business cords with Russia due to its invasion in Ukraine.

On 10^th March 2022, Rio Tinto stated in the present day high-profile corporate withdrawal from Russia, “We are in the process of terminating all commercial relationships that we have with any Russian business.”

This announcement has intensified the concerns in regards to the future of Rio Tinto’s majority-owned Queensland Alumina Limited (QAL) in Gladstone, one of the biggest alumina refineries operational in Australia, where Rusal holds a 20% stake.

As per industry source, the partnership agreement between Rio Tinto and Rusal has been laid down under immediate scanner on 10^th March.

The Anglo-Australian multinational, Rio Tinto was anticipating countering challenges in unfurling the deal without sanctions against Rusal or the minority partner’s consent, as added by our sources.

However, in that scenario, Rio Tinto will be forced required to buy out Rusal’s stake holdings in the venture.

Although the biggest miner of Australia, Rio Tinto formerly send an indication that it was confident there were appropriate structures in place to keep the operations of the aluminium business undisrupted.