The Kremlin sees the situation in Guinea as a serious factor negatively affecting the aluminum market, but for now the Russian authorities are not considering options to support the mining company Rusal, which, according to industry sources, could lose up to a third of aluminum production, Russian presidential spokesman Dmitry Peskov said.
"No, this is a new development, and so far no support options are being considered. We are really talking about a serious factor that could have a negative impact on the aluminum market as a whole," Peskov said, responding to a question about whether the Russian authorities are considering helping RUSAL in some way.
Earlier, an industry source told RIA Novosti that RUSAL could potentially lose one-third of its aluminum production due to the events in Guinea.
"We are, of course, closely following what is happening in Guinea. We wanted to get the situation in Guinea back on track as quickly as possible. And, of course, we expect in any case that the business interests of our entrepreneurs, our companies will not suffer, that their interests will be secured," he told reporters.
According to the Aluminum Association of the Russian Federation, Guinea has the world's largest reserves of bauxite. It accounts for 26.4 percent of the world's reserves and 20 percent of production. Bauxite production more than quadrupled from 2015 to 2020. Guinea's share of the raw material supply for China, the world's largest aluminum producer, is 50%; Rusal, the largest aluminum producer outside of China, is 45%.
On Sunday, Guinean Special Forces officers led by Colonel Mamadi Doumbouya, who previously served in the French foreign legion, detained the country's president, later announcing the dissolution of state institutions, the termination of the constitution and the closure of the African country's borders. According to Doumbouya, the country's president, Alpha Condé, is under the control of the military in a safe house.
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Based on materials from RIA Novosti