Rusal disagrees that Rio Tinto has taken control of JV in Australia, expects to resume participation in management

MOSCOW. April 11 (Interfax) - Rusal disagrees Rio Tinto has received full control of its joint alumina venture in Australia and will be aiming to resume participation in management, the Russian aluminum giant said in a statement.

Bloomberg reported that Rio Tinto Group had taken full control of Queensland Alumina Ltd asked by the QAL management to step in. A source told the agency that Rio was asked by the QAL management to step in and take full control of the asset after it received legal advice suggesting that the operating structure could not comply with Australia's sanctions.

Rusal said it "disagrees that the operations of its subsidiary, Alumina & Bauxite Company Ltd, through which the company holds its stake in QAL, do not presently comply with the Australian Government's sanctions and disagrees with the decision made by QAL management that 'step-in arrangements' under the joint venture terms have been triggered or that they are necessary."

"Discussions with QAL and Rio Tinto are continuing about the intent of the Australian Government's sanctions and ABC's ongoing involvement in the operations of the Gladstone alumina refinery owned by QAL," Rusal said.

"The company's commitment to the investment in the Gladstone alumina refinery remains and the company fully supports QAL's objective of maintaining 100% production capacity at the Gladstone alumina refinery while issues in respect to the operation of the Australian Government's sanctions are resolved. The company anticipates a successful resolution of the discussions with QAL and Rio Tinto and ABC resuming its participation in the operations of the Gladstone refinery," it said.

A ban on alumina and bauxite exports to Russia that Australia imposed on March 20 will affect about 20% of Rusal's needs for this raw material, the Russian company has said.