Kazakhstan looks for new markets for its alumina exports

Being concerned about US sanctions against Rusal that it could bring down a shadow over businesses and jobs, Kazakhstan is in search of new markets and opportunities for its alumina exports.

Eurasian Resources Group (ERG), partially owned by the Kazakh government, produces 1.5 million tonnes of alumina every year, two-thirds of which used to be sourced by Rusal to make aluminium. Moreover, the company was preparing to boost its smelting capacity in anticipation of the Rusal contract expiring at the end of 2019. However, it has not commented much about the impact of Rusal sanctions on its operation.

Timur Toktabayev, deputy minister for investments and development said on Thursday, April 19, 2018 that the cabinet is looking at various options for opening up new markets and avoiding shutdowns at local plants. Adding to this, he also said to some reporters on the sidelines of a mining conferece “It is hard to say (where Kazakh alumina might go instead of Russia) because contracting is mostly done early in the year.”

However, he is optimistic about the fact that aluminium price has surged which could drive higher smelting volumes across the globe and therefore, the higher demand for alumina.

“We must look at the opportunities. The price (of aluminium) has gone up and therefore I think global smelting volumes will increase, there will be fresh demand and we will find something.”

He also said, “Higher price could make it feasible to ship Kazakh alumina to markets further away.”