On 5th May 2022, the Anglo-Australian mining and metal giant, Rio Tinto stated that any sanctions on the Russian aluminium producer Rusal in response to the Ukraine-Russia conflict will disrupt the aluminium market and precipitate an increase in the silver metal's price.
Simon Thompson, the Chairman of Rio Tinto informed the shareholders at the group's annual meeting in Australia, “If Rusal was to be sanctioned that would certainly cause pretty significant disruption in the aluminium market, because Rusal is a very big exporter of aluminium, particularly to Europe."
"I think the impact on Rio Tinto would probably be positive, in the sense that the aluminium price would likely go up."
Rio Tinto announced on 19th December 2021, “The Board of Rio Tinto has selected Dominic Barton to succeed Simon Thompson as the company’s new Chairman. Dominic will join the Board with effect from 4th April 2022 and be appointed to the role of Chairman at the conclusion of the Rio Tinto Limited annual general meeting on 5th May 2022.”
“Simon Thompson will step down as a non-executive director of Rio Tinto and as Chair at that same time on 5th May 2022, having served as Chairman for four years and as a non-executive director since 2014.”
On 9th April, it was reported that Queensland Alumina's (QAL) management had urged Rio to step in and take full control of the business after receiving legal advice that the operational structure could not comply with Australia's sanctions. When sanctions are lifted, control will revert to the old joint-venture operational structure.
While on 12th April it was also published that the world leader in the production of low-carbon aluminium, Rusal has opposed arrangements that permit Rio Tinto to take sole control of the joint venture refinery, the Queensland Alumina Ltd (QAL).
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