Rusal, Glencore agree aluminium deal worth up to $16.3 bln

Credit: REUTERS/ILYA NAYMUSHIN

Corrects to read "up to", paragraph 6

MOSCOW, April 3 (Reuters) - Russia's Rusal 0486.HK has approved a new long-term aluminium supply contract with Glencore GLEN.L worth up to $16.3 billion, it said in a Hong-Kong regulatory statement on Friday.

Swiss trader and metals producer Glencore has long been one of the main clients of Hong Kong-listed Rusal, the world's largest aluminium producer outside China.

Glencore owns a stake in Rusal parent En+ Group ENPLq.L.

The new contract is for 2020-2024 and can be extended for 2025, Rusal said.

It said its board of directors in December approved the deal, which succeeds a previous contract which expired in late 2018. The contract requires approval from Rusal shareholders.

Rusal, which produced 3.8 million tonnes of aluminium in 2019, will supply up to 6.9 million tonnes of the metal to Glencore under the contract, including up to 344,760 tonnes in 2020 and up to 1.6 million tonnes per year in 2021-2024.

"This agreement provides the company with significant volumes of primary aluminium sales at market price with a number of quantitative options," Rusal said in a separate comment.

Glencore declined to comment.

(Reporting by Anastasia Lyrchikova; additional reporting by Zandi Shabalala; writing by Polina Devitt; editing by Jason Neely)

((Polina.Devitt@thomsonreuters.com; +7 495 775 12 42; Reuters Messaging: polina.devitt.reuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.