19 Jun 2018 19:14

Rusal begins bauxite exports from Guinea's Dian-Dian mine

MOSCOW. June 19 (Interfax) - Rusal has begun ore exports from the Dian-Dian bauxite deposit in Guinea, the company said on Tuesday.

Aside from the mine itself, with capacity of 3 million tonnes of bauxite, the completed first stage of Dian-Dian's development includes all related infrastructure, including highways and railway lines for transportation and warehousing of ore.

As of April 2018, Rusal was 80% supplied with its own bauxites and wholly supplied with its alumina, but this situation may have changed due to the negative impact of U.S. sanctions on the company's business.

Last year, Rusal reached an agreement with Guinean authorities on the renewal of a concession for development of the Dian-Dian deposit for 25 years, which will allow the company to fully meet its need for bauxites.

It was planned that Dian-Dian bauxites would be processed at the Auginish plant in Ireland, Rusal's largest alumina plant, which produces 30% of all European alumina. Glencore added the enterprise to the integrated company in 2007. In April 2018, primary Auginish supplier Rio Tinto announced a cessation of its contract with the plant. The U.S. Department of the Treasury later allowed business activities with Rusal to continue through the end of October.

Rusal ships the bulk of its alumina from plants in Ireland and Jamaica due to a dearth of domestic supplies. A substantial portion of Rusal's alumina is bought on the market - with 1.5 million tonnes of alumina and around 6.8 million tonnes of bauxites bought from third parties in 2017, in conjunction with own production of 7.8 million tonnes of alumina and 11.64 million tonnes of bauxites.