Rusal reroutes bauxite cargoes from Guinea to Ireland destined for Ukraine

The world’s largest producer of low-carbon aluminium, Rusal is redirecting bauxite consignments from Guinea to its Aughinish Alumina refinery in Ireland, while it was originally destined to Nikolaev alumina refinery in Ukraine, according to the revelation of shipping data. However, the cause of diversion is due to the present situation of Russia-Ukraine military conflict that has triggered the suspension of operation for the refinery.

The company that aims to encourage a circular economy by leveraging reverse logistics, Rethink Logistics concerning the sanctions on Russia, stated that the sort of supply chain disarray now rippling through the interrelated global economy, gearing up the prices for various goods.

The Russian billionaire and founder of Rusal oligarch Oleg Deripaska have been sanctioned by Britain lately, while the Russian aluminium giant has not been targeted hard, whereas the global mining and metal giant Rio Tinto has already declared of unfastening its ties with Rusal, a drive towards pulling back if and every business from Russia.

The Anglo-Australian multinational company, Rio Tinto used to be a vital supplier of bauxite for Rusal owned Aughinish refinery near Limerick in Ireland, one of the largest alumina producing refineries in Europe.

According to a spokesperson from Aughinish Alumina, the government of Ireland is desirous for the alumina refinery to pursue its operations, as Rusal is a significant employer in Limerick.

The spokesperson further added, “The department and its agencies continue to assess the implications of recent developments and are closely monitoring the situation.

“We are fulfilling all its obligations towards its employees at all its assets around the world, including paying salaries and is strongly committed to continuing to do so".

Although, the representative acknowledged that had been an interim downfall in bauxite exports from Guinea due to the Russia-Ukraine standoff, however, the company does not plan to cease production in the West African nation.

The world’s leading aluminium manufacturer, Rusal operates three mining projects in Guinea, as its Dian-Dian mines have factually supplied bauxite to Aughinish Alumina, while its Friguia project comprises a bauxite mine and an alumina refinery. The bauxite produced by its Kindia operation is generally sent to the Nikolaev alumina refinery in the Ukrainian port city of Mykolaiv.

The Nikolaev alumina refinery has an annual production capacity of 1.7 million tonnes of alumina, which is about a fifth of Rusal's output of the material used to produce aluminium.

As per a global media organisation’s analysis for one of the world’s largest providers of financial markets data and infrastructure, Refinitiv shipping data unveiled on 15^th March 2022, that out of six vessels at sea, which were originally carrying bauxite from Guinea to the Nikolaev alumina refinery, four had redirected to Aughinish Alumina in Ireland.

However, data also reveals that the two other vessels are in the western Mediterranean Sea awaiting orders.

Founded by Oleg Deripaska, Rusal and its parent company En+ Group have stated the sanctions against him have no impact on them or their subsidiaries.

European Union member nations are considering a ban on Russian ships entering the bloc's ports, which would further dent Russia's commercial shipments. Fortunately, none of the charter vessels transporting Rusal's bauxite from Guinea is owned by Rusal or any other Russian companies or is registered in Russia.

“Rusal plans to increase its supply of bauxite to Aughinish, replacing shipments from Brazil. Bauxite exports to the Nikolaev refinery will resume as soon as the situation in the region normalises”, the Rusal spokesperson added.