Rusal’s Alumina and Aluminum Revenues Expected to Reach $15.18 Billion in Five Years
Rusal, a Moscow-based aluminum producer, is a leading player in the processed alumina and aluminum market. With operations spanning bauxite mining, alumina refining, and aluminum production, the company leverages renewable hydroelectric power to manufacture 90% of its aluminum, significantly reducing greenhouse gas emissions. Rusal’s processed alumina and aluminum revenues reached $11.93 billion in 2023, constituting 97.68% of its total revenues and a 1.34% share of the global market. According to TBRC estimates, Rusal’s revenues from processed alumina and aluminum are projected to grow at a compound annual growth rate (CAGR) of 6.77%, increasing from $11.93 billion in 2023 to $12.74 billion by 2024. Over the next five years, the company is expected to achieve total revenues of $15.18 billion, reflecting a $3.25 billion increase. This growth is attributed to post-pandemic operational recovery and strategic market realignments.
Rusal is poised to expand in high-growth regions such as South America, the Middle East, and Africa, where countries like Argentina, Turkey, Nigeria, Egypt, and Iran present substantial opportunities. These regions are expected to drive market expansion in the coming years. The company operates through several business divisions, including the Aluminum Division, which focuses on producing and selling primary aluminum, billets, rolling slabs, foundry alloys, wire rods, high-purity aluminum, foil, packaging products, aluminum wheels, and powders. The Alumina Division engages in mining and refining bauxite and nepheline ore into alumina, with an emphasis on alumina sales. The Energy Division manages coal mining, as well as electricity generation and transmission from various energy sources. The Mining and Metals Division includes equity investments in PJSC MMC Norilsk Nickel.
The global processed alumina and aluminum market, valued at $895.38 billion in 2023, represents 11.43% of the global metals and minerals sector. The market remains fragmented, with the top five players, including Hindalco Industries, Norsk Hydro, CHALCO, Rio Tinto, and Alcoa Corporation, collectively holding just over 9% market share. Rusal’s large market share in a high-growth sector positions it as an attractive player for investment and strategic partnerships.
In 2023, Rusal recorded $12.21 billion in revenue, an operating loss of $0.08 billion, and a net loss of $0.28 billion. The company’s market capitalization as of August 2024 stood at $16.54 billion. Despite financial setbacks, Rusal remains a key player in the processed alumina and aluminum market, supported by its expansive operations and commitment to sustainability. Rusal’s focus on renewable energy and low-carbon aluminum production aligns with growing demand for sustainable solutions in the metals industry. Its strong market presence and operational scale provide a solid foundation for continued growth, especially in emerging markets. The company’s innovative practices and commitment to high-growth sectors underscore its potential to maintain competitiveness in the global market.
