Russian aluminium producer Rusal is expected to complete the demerger of its higher-carbon assets into a separate company in the second half of 2022, its largest shareholder, En+ Group said.
Hong-Kong listed Rusal, the world’s largest aluminium producer outside China, previously expected this process to be finished in the first quarter of 2022. It plans to change its name to AL+ as part of the process, which it hopes will help it to achieve carbon neutrality by 2050.
En+, which owns 56.9% of Rusal, and Sual Partners, Rusal’s second-largest shareholder, support the idea of demerging Rusal’s high carbon businesses, En+ said in a statement.
Sual Partners, which holds 25.6% of Rusal, said in a separate statement it “fully shares Rusal’s commitment to achieving carbon neutrality and is ready to work constructively together on this.”
The new AL+ is expected to keep 60% of its current aluminium and 70% of alumina production assets and to seek a Moscow listing for its shares.
The spun-off assets – five older aluminium smelters, four alumina refineries and two bauxite mines in Russia – will form another company, yet to be named, which will focus on upgrading its technology.
“The demerged Rusal businesses will have a different trajectory and strategy to decarbonise their operations but they will share the same 2050 goal,” Gregory Barker, En+ executive chairman, said in the statement.