The Russian aluminium giant Rusal has approved a new long-term aluminium supply contract with Glencore worth up to $16.3 billion, as announced in a Hong-Kong regulatory statement on 03rd April.
The British born Swiss trader and metals producer Glencore Plc has long been one of the principal clients of Hong Kong-listed Rusal, the world's largest aluminium producer outside China. Glencore holds a stake in Rusal parent Group En+.
Rusal stated that the new contract is set for 2020-24 and can also get extended to 2025.
The board of director had already approved the deal in December’19. This deal succeeds the previous contract which expired in late 2018.
The contract now requires approval from the shareholders of Rusal.
Rusal has produced 3.8 million tonnes of aluminium in 2019. As per the contract, Rusal needs to supply 6.9 million tonnes of aluminium to Glencore throughout the stipulated period. The breakout looks like 344,760 tonnes to be delivered in 2020 and around 1.6 million tonnes per year during 2021-24.
Rusal also added: "This agreement provides the company with significant volumes of primary aluminium sales at market price with a number of quantitative options."
Responses
