Rusal’s largest stakeholders accept the demerger of higher carbon assets by H2 2022

On Monday, En+ group, one of the largest shareholders of Rusal stated that the company is expected to complete the demerger of its higher-carbon assets into a new business in the second half of 2022.

Previously, Hong-Kong listed Rusal, largest producer of aluminium outside China had anticipated this procedure to be completed in the first quarter of 2022. As part of the effort, it aims to change its name to AL+, which it expects will help it reach carbon neutrality by 2050.

Rusal's high-carbon operations should be demerged, according to En+, which controls 56.9 percent of the company. Sual Partners, Rusal's second-largest stakeholder, also supports the notion, according to En+.

Sual Partners, which controls 25.6 percent of Rusal, stated in a separate statement, “fully shares Rusal’s commitment to achieving carbon neutrality and is ready to work constructively together on this.”

AL+ is anticipated to preserve 60 percent of its present aluminium and 70 percent of its alumina production assets, as well as pursue a Moscow listing for its shares. The assets that were split off — five older aluminium smelters, four alumina refineries, and two bauxite mines in Russia – will be combined to establish a new firm that will focus on technical upgrades.

“The demerged Rusal businesses will have a different trajectory and strategy to decarbonise their operations but they will share the same 2050 goal,” said Gregory Barker, the executive chairman of En+.