Alumina industry weekly recap: Russia Ukraine conflict causes record breaking inflation in raw material prices; Alumina Limited year ending net profit surges to US$187.6 million
The sudden hike in the number of events in alumina segment is primarily due to the anticipation of the crisis between Russia and Ukraine. The conflict has stirred the raw material industry greatly, causing record breaking inflation in prices of raw materials. Apart from this, looking at the current scenario, Irish businesses are concerned about their financial sanctions against Russia as Rusal’s Aughinish alumina refinery in the Shannon Estuary, Europe's largest, may find itself in the sanctions red zone since it sends 45% of its aluminium production raw material to European markets. Also, Rio Tinto owned Queensland Alumina Limited (QAL), one of Australia's major alumina refineries, is concerned about the prospect of penalties. Rio Tinto owns a majority of the alumina refinery and has warned of impending turbulence in its aluminium industry, while Rusal, the Russian aluminium behemoth, owns a 20% share in QAL.
The Minister for Transport and Mining of Jamaica, Audley Shaw stated his gratification that despite the negative impacts of the previous year’s fire at Jamalco, the refinery has been able to safeguard the jobs of around 1,000 employees. On 16th February the minister was convoyed by senior civil servants from the Ministry of Transport and Works on a tour of the refinery, which happens to be the main source of employment in the area.
To know more: https://www.alcircle.com/news/jamalcos-effort-to-safeguard-1000-jobs-due-to-fire-impact-lauded-by-mining-minister-76675
Following the succession of diplomatic entries to the Kremlin over the past few weeks, in regards to the standoff between Russia and Ukraine steering a manifestly dangerous whirl with the progress by Vladimir Putin, the Russian President to count that the Ukrainian regions of Donetsk and Luhansk will become independent republics. However, the European Union and the United States are concluding their first round of economic sanctions and more wide-ranging sanctions will be clasp in reserve to be applied if Russia progresses further with armed aggression against Ukraine.
The anticipation of sanctions is on the fear radar of one of Australia’s largest alumina refineries, Queensland Alumina Limited (QAL). The alumina refinery is majorly owned by Rio Tinto, who has alerted of an emerging turmoil to its aluminium business, while the Russian aluminium giant Rusal is the 20% stakeholder of QAL. The Gladstone, Australia based Queensland Alumina Limited operates a refinery, which was earlier been imposed with US sanctions in 2018. However, there has been no comment yet from QAL in regards to the sanctions or if any impact they are countering or predicting for the company.
Freight prices may continue high for the remainder of 2022, eroding margins that helped Alumina Limited post a more than 28% increase in annual earnings last year. The net profit for the year ending December 31 increased to $US187.6 million ($260.7 million) from $US146.6 million the previous year. Alumina Limited will pay a final dividend of US2.8, down from US2.9 last year. The only asset Alumina Limited has is a 40% investment in AWAC, which controls a global portfolio of bauxite mining, alumina refineries, and an aluminium smelter in Portland, Victoria.
To know more: https://www.alcircle.com/news/alumina-limited-year-ending-net-profit-increases-to-us187-6-million-76690
source https://www.alcircle.com/news/alumina-industry-weekly-recap-russia-ukraine-conflict-causes-record-breaking-inflation-in-raw-material-prices-alumina-limited-year-ending-net-profit-s-76722
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