Rusal’s Aughinish Alumina in Ireland books profit after revoke of US sanctions

Rusal Aughinish Alumina is the largest alumina refinery in Europe and the largest of the alumina facilities operated by UC RUSAL has declared the rise of pre-tax profits by over 30% to $54.60 million for 2019. The company has been done well following the revoke of US sanctions against its Russian owner.

However, revenues dropped to $690.9 million from $757.1 million, having jumped 15% a year earlier.

The US sanctions, imposed by the US Department of Treasury on the refinery’s owner the Rusal Group in 2018, abjured in late January 2019.

The alumina refinery was also in the news previous year after Ireland lost a state aid appeal over a European Commission ruling that Aughinish Alumina plant received €10 million in illegal tax breaks between 2002 and 2004 through an exemption from excise duty for heavy mineral oil used to produce aluminium.

The main venture of the Shannon estuary-based refinery is the production and sale of alumina, which is extracted at the plant from bauxite and then exported outside the EU for further processing to aluminium metal.

The plant supplies about 30% of the EU’s alumina, much of which is used for aluminium in the car and aeronautical sectors.

Rusal has previously said: “We regard the plant as a major asset and last year announced plans to invest further in the facility. Newly filed accounts for Limerick Alumina Refining Limited reveal the parent put additional funds into the business recently in a move to replace third party-supplied bauxite with owner-supplied bauxite.”

Company Directors said: “This significant development will help sustain the business in the long term.”

Limerick Alumina owed Rusal Trading International $126.3 million at the end of the year, with a further $22.4 million owed to UC Rusal Alumina Limited.

The company said: “The refinery continued to operate during the Covid-19 crisis as permitted by the Irish Government with no impact on output during the period.”