Rusal Acquires Stake in Indian Alumina Producer Pioneer Aluminium

Rusal has reached an agreement with Indian firms Pioneer and KCap to acquire a stake in Pioneer Aluminium Industries, an alumina producer. The deal will see Rusal’s subsidiary purchase up to 50% of the company's shares in three stages.

According to a filing on the Hong Kong Stock Exchange, Rusal will acquire an initial 26% stake for $243.75 million. The full acquisition process will be subject to adjustments for working capital and debt, as reported by Kommersant.

The alumina refinery, with an annual production capacity of 1.5 million tonnes, will continue to operate as a joint venture. The co-owners will supply bauxite and receive alumina in proportion to their respective stakes. Currently, Penna Group holds a 68% stake, while Rescom Group, through its KCap division, owns 26%.

Rusal stated that the transaction will secure access to alumina at a competitive price, following its loss of access to the Nikolaev alumina refinery in Ukraine and supply restrictions from Australia in 2022. In 2024, the company also acquired a 30% stake in Chinese alumina producer Hebei Wenfeng New Materials.

Rusal, one of the world’s largest aluminum producers, reported a net profit increase of 2.8 times in 2024, reaching $803 million, despite a 1.1% decline in revenue to $12.08 billion.