Rio’s aluminium production plunged 5% YOY in Q1 2018, however, hopeful for the future
One of the world’s largest metals and mining corporations Rio Tinto today announced aluminium output for the first quarter of 2018. The production has plunged by 5 per cent in Q1 to stand at 0.8 million tonnes against the contemporary period last year. This is primarily due to disruptions at its Becancour smelter in Canada.
The company has declared its total divestments of US$5 billion for 2018 as well, subject to binding offers for the Aluminium Dunkerque smelter in France for US$500 million and the ISAL aluminium smelter in Iceland for US$345 million. The sales are expected to complete in the second quarter of 2018.
Rio also reported that it is reviewing Rusal’s 20 per cent stake in its Queensland Alumina Refinery, along with bauxite sales to Rusal’s refinery in Ireland and offtake contracts for alumina.
“Adjustments may ... be made as a consequence of the U.S. sanctions,” it said.
However, being a major aluminium exporter to the US, Rio expects to reap substantial benefit from the US sanctions on Rusal as a competitor, especially on the occasion of aluminium price surge by more than 20 per cent.
The miner further reported that its 2018 forecasts of producing 3.5 to 3.7 million tonnes of aluminium would also face adjustments following the sale of its Icelandic and French aluminum smelters.
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