Rusal Plans Expansion of Boguchansk Smelter to Double Capacity
Rusal plans to start construction of the second stage of the Boguchansk aluminium smelter in 2025, according to Renaissance Capital. This expansion will double the smelter's production capacity to 596,000 tonnes per year, with the start-up complexes being commissioned in stages until 2030.
The total investment in the project will be updated by the end of the year. Previous estimates placed the investment at $2.6 billion.
In the first half of 2024, Rusal reported a 4% year-on-year decline in revenue to $5.7 billion. Despite lower revenue, EBITDA surged 2.7 times year-on-year to $786 million due to reduced costs and a low base effect. Net profit increased by 42% year-on-year to $446 million. However, the company recorded a negative free cash flow of -$819 million, mainly driven by significant working capital accumulation.
Overall aluminium production rose by 2% to 1.96 million tonnes, boosted by increased output at the Taishet smelter, while sales fell by 3% to 1.88 million tonnes. Average aluminium sales prices dropped by 2% to $2,447 per tonne.
With the European Union considering further sanctions on Russian aluminium, Rusal has shifted its focus to Asian markets. The share of European revenue fell to 22%, while Asia's share rose to 42% in the first half of 2024. The CIS countries accounted for 34% of sales, while the U.S. share dropped from 2% to 1%.