RUSAL has cemented its position as the successor to the Russian and Soviet aluminium industry, consolidating leading facilities, innovative research, and cutting-edge technologies. Operating across four strategic business units—aluminium, alumina, energy, and mining and metals—the company's core segments, as highlighted in the H1 2024 report, remain aluminium and alumina. As 2024 comes to a close, we examine the industrial giant’s performance, milestones, and challenges.
A legacy of leadership
The roots of Russia’s aluminium industry trace back to 1885 when A. Novoveisky established the country’s first aluminium smelter in Sergiev Posad. Significant breakthroughs followed, including the Bayer method of alumina production in 1889 and the launch of the Soviet Union’s first aluminium smelter in Volkhov in 1932. By the mid-20th century, major developments included the construction of the Bratsk Aluminium Smelter in 1966, then the world’s largest, and the state-of-the-art Sayanogorsk Smelter in 1985.
Post-Soviet advancements led to the formation of Siberian Aluminium in the 1990s, which later merged with Millhouse Capital in 2000 to form RUSAL. Through strategic acquisitions and technological advancements like the RA-300 and RA-400 reduction cells, RUSAL solidified its position as a global leader. Despite challenges like the 2008 financial crisis and US sanctions in 2018, the company continues to innovate, exemplified by its ALLOW 'green' aluminium and environmentally friendly technologies.
- COP29 innovation: RUSAL unveiled a digital platform to facilitate resource sharing, networking, and best practice exchanges. Elena Myakotnikova, Chief Sustainability Officer, highlighted its role in enhancing international collaboration and sustainability efforts.
- Pioneering carbon unit deals: In a landmark transaction within the BRICS framework, RUSAL’s carbon units, issued in the Russian registry, were acquired by the Arab investment fund Equity International. Gazprombank organised the deal, announced during the BRICS Business Forum in Moscow, showcasing the company’s leadership in climate solutions.
- Ultra-low-carbon aluminium: RUSAL supplied ALLOW INERTA™ metal, the industry’s lowest carbon footprint aluminium, to an Asian tier-1 OEM supplier for aluminium wheels. This innovation significantly reduced the product’s environmental impact.
- Industrial AI integration: The company successfully tested a neural network model for electrolysis control, enhancing productivity by optimising the chemical composition of electrolytes in aluminium smelting. This proprietary development underscores RUSAL’s commitment to technological advancement.
- Revolutionising Transportation: RUSAL initiated the development of an aluminium-alloy metro car, reducing its weight by 2 tonnes compared to steel alternatives. This innovation promises energy savings and lower infrastructure costs.
Production Performance
- Aluminium: Output reached 1.957 million tonnes in H1 2024, a 2.3 per cent increase year-on-year, driven by the ramp-up at the Taishet Aluminium Smelter.
- Alumina: Production rose 18.94 per cent to 2.995 million tonnes in H1 2024, attributed to strategic measures like increasing bauxite input at Aughinish and optimising operations at Friguia and Windalco facilities. Russian alumina refineries saw a 5.5 per cent decline in output due to maintenance-related disruptions.
- Bauxite: Output increased by 17.6 per cent to 7.940 million tonnes, supported by third-party sales from CBK and Dian Dian.
- Value-added products: Production of high-margin products decreased slightly, while a shift to secondary alloy production and increased powder production boosted financial efficiency by over 50 per cent.
Financial Highlights
- Gross Profit: RUSAL reported US$1,310 million in H1 2024, up from US$728 million in H1 2023, with the gross profit margin increasing from 12.2 per cent to 23 per cent.
- Net Profit: The company posted US$565 million in profit, compared to US$420 million in the same period in 2023.
Challenges
The business has announced plans to reduce annual production by 250,000 tonnes due to global alumina price hikes, exacerbated by disruptions in Guinea and Brazil. However, the timeline and affected smelters remain undisclosed.
Recognition and Accreditations
- Green Certification: The global giant became the first foreign company to receive the China Green Power Aluminium Certificate. The award confirms that 50,000 tonnes of aluminium produced at the Bratsk Smelter meet stringent green power standards.
- Credit Stability: The Analytical Credit Rating Agency has also affirmed RUSAL’s credit rating at A+(RU) with a stable outlook.
Looking ahead, RUSAL’s robust performance in 2024 underscores its resilience and commitment to sustainability and innovation. By leveraging advanced technologies, strengthening global partnerships, and addressing environmental challenges, the company is poised to remain a leader in the aluminium industry for years to come.
_md.webp)
