Rusal to cut alumina output at Guinean plant in July

Production and Markets

Publishing Date: 25 Jun 2009 3:47pm GMT
Author: Mining Journal

UC Rusal, the Russian aluminum producer controlled by billionaire Oleg Deripaska, said it will cut alumina production at its Friguia plant in Guinea by "more than 50%" next month.

The reduction is "just for July so far," the Moscow-based company said today in an e-mailed response to questions.

Friguia has the capacity to refine about 640,000Mt of alumina and 1.9Mt a year, according to Rusal’s website. Guinea is the world’s largest exporter of bauxite.

The decision to reduce production was made as part of an "optimisation program," Rusal said, without providing further details.Although in April Guinea's military government threatened legal action against Rusal over the Friguia complex contract, which it said had had been bought well below the market value.

No jobs will be lost as a result of the lowered production in Guinea, said Rusal, which employs about 1,100 people at Friguia.

Alcoa Inc, the largest US aluminum producer, Rio Tinto and Norway’s Norsk Hydro ASA are among companies that have reduced output as the global recession curbs demand for the lightweight metal.

Aluminum, the most-traded contact on the London Metal Exchange, has advanced 7.1% this year, the least among all nonferrous metals traded on the bourse. Inventories tracked by the LME have jumped 87% in 2009, weighing on prices.