Rusal sanctions have not yet made impact on Kazakhstani alumina exports
ASTANA. April 27 (Interfax) - Kazakhstan's exports of alumina to Russia in the first quarter of 2018 declined slightly by 5%, the Kazakhstan Ministry of Investment and Development said.
"In the first quarter of 2017, 260,000 tonnes of alumina was exported and 246,000 tonnes in the same period of 2018. Based on the data, there is no significant decrease in export supplies in the first quarter," the ministry said.
Aluminum of Kazakhstan, part of ERG, supplies the largest part of alumina it produces to Rusal.
"The company is analyzing the current situation in connection with the economic sanctions imposed by the United States against certain companies and individuals, including Rusal. The Eurasian Group (ERG) is not ready to comment on the matter," the ministry said.
Kazakhstan's Ministry for Investments and Development said earlier it was taking steps to mitigate the negative impact of anti-Russian sanctions on the country's mining and metal producing companies, in particular, in connection with alumina supplied by Aluminum of Kazakhstan to the Russian company Rusal, which had been hit by sanctions.
Deputy Minister for Investments Timur Toktabayev said that Aluminum of Kazakhstan has signed an 18-year contract for the supply of alumina to Rusal, which will expire in three years.
"Of course, we are considering how to replace the main alumina buyer for Aluminum of Kazakhstan. The only thing that complicates the matter is that contracts are usually concluded at the end of the year, or at least at the beginning of the year, so other suppliers and other markets are now bound by their contractual obligations. Now work is underway to find ways to help the company out, " Toktabayev said.
Aluminum of Kazakhstan JSC is the main aluminum producer in the ERG group. Aluminum of Kazakhstan produces 1.5 million tonnes of alumina per year, of which it exports 1 million tonnes to Rusal.
ERG is one of the world's leading diversified mining and smelting groups with fully integrated mining, processing, energy production, logistical and marketing operations. ERG owns assets in Kazakhstan Europe, Africa and Brazil. In Kazakhstan, ERG owns Kazchrome, Aluminum of Kazakhstan, Sokolov-Sarbai Mining and Processing Works (SSGPO), Kazakhstan Electrolysis Plant, Eurasian Energy Corporation, Shubarkol Komir and Transcom.