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Rio Tinto reviewing Rusal ties, mum on Queensland venture

Published 10/04/2018, 16:21
Updated 10/04/2018, 16:30
© Reuters. FILE PHOTO: The Rio Tinto mining company's logo is photographed at their annual general meeting in Sydney
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(Reuters) - Rio Tinto Plc (L:RIO) is reviewing its trading relationships with Russian aluminum producer United Company Rusal (HK:0486) to make sure it complies with U.S. sanctions, its aluminum boss said on Tuesday, but added it was premature to speculate on the future of an Australian venture of which Rusal is part owner.

Rusal owns 20 percent of Rio's Queensland Alumina operation, of which Rio owns the remaining 80 percent.

"We are reviewing in detail all our trading relationships with Rusal and other counterparties and we will obviously do what we have to do to ensure that we comply with applicable sanctions," Alf Barrios, Rio Tinto Aluminium chief executive Alf said in an interview.

He said the global miner had had calls from customers wanting to ensure they could get a secure supply of aluminum in future. Rio would continue to work with them to support them, he said.

Rio Tinto will be among the biggest winners from U.S. sanctions on Rusal as the penalties further shake up the global metals trade and boost costs for U.S. consumers, industry sources say.

© Reuters. FILE PHOTO: The Rio Tinto mining company's logo is photographed at their annual general meeting in Sydney

Rio on Tuesday also said it was the first company in the world to receive certification under the Aluminium Stewardship Initiative, an international standard certifying that aluminum has been responsibly and sustainably produced.

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