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Factbox-Mining companies distance themselves from Russia -Breaking


© Reuters. FILE PHOTO – Aluminium ingots can be seen at the Rusal Krasnoyarsk aluminum smelter, Krasnoyarsk on October 3, 2018. REUTERS/Ilya Naymushin/File Photo

(Reuters] – Russian business connections are being broken by mining firms in Ukraine.

Britain imposed sanctions Thursday on seven prominent Russian oligarchs, including Oleg Debipraska who is part of EN+ Group. EN+ Group is the parent company to UC Rusal. It’s the second-largest producer of aluminium in the world.

Russia’s ruling party United Russia said Wednesday that a commission of government officials had approved the first step toward nationalising foreign assets left in Russia after unprecedented economic sanctions were placed on Ukraine.

It is not clear what nationalization would look like for Western companies that are involved in joint ventures in Russia with Russian mining companies.

These are just a few of the stakes, assets, and partnerships that we have:


Rio Tinto, the Anglo-Australian miner Rio Tinto (NYSE :), announced this week it would cut all ties with Russian business, including any fuel or other material sources, for Oyu Tolgoi and its Mongolian operations. Also, Rio Tinto will be using an Irish alumina refining plant.

Rio Tinto is a joint venture partner with Rusal Internaional PJSC. It holds 80% Queensland Alumina Ltd. (OTC:) Ltd. (QAL), Australia’s 2nd-largest refinery for alumina. Alumina, a chemical compound that includes aluminium, is Australia’s most important and widely used raw material. Rusal controls the remaining 20%. Rio might find it difficult to give up its stake in Rusal as the majority shareholder.

Rio Tinto also holds a supply/offtake contract with Rusal Aughinish (Europe’s biggest alumina refinery) in Ireland. It is looking to also halt.


Glencore is a Swiss miner and trader. Glencore has 10.5% ownership in EN+ Group. Glencore stated last week that it is reviewing its stakes in Rosneft (0.57%) as well as EN+ Group. Rosneft boss Igor Sechin has been placed under British, European Union, and U.S. sanction.

Glencore declined to comment on Thursday, and didn’t explain the implications of reviewing the stakes.


Canadian gold miners Kinross Gold (NYSE:) Last week, it announced that Russia would be suspending all its operations including Udinsk’s development project and Kupol mine located in northern Russia.


BHP Group, the world’s biggest mining company (NYSE:), stated that it doesn’t sell to Russia and does not have investments or commercial agreements in Russia.


London-listed miner Anglo American (LON: ) claimed it doesn’t have operations in Russia but is currently “evaluating any commercial relations with Russian businesses to ensure that we make the best decisions.”

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