Russian Aluminium Giant Rusal Investigates Expansion in Australia

Reddit

Neil Diamond sings a catchy song you might know. “On the boats and on the planes, they’re comin’ to America.” But it should be changed. They’re coming to Australia. Who are they?

“The world’s largest aluminium producer is poised to expand its presence in Queensland,” reports James McCullough in the Courier Mail. “Russia-based Rusal, which already owns a 20 per cent stake in Gladstone’s Queensland Alumina (ASX: QAL), is actively investigating establishing a refinery and smelter in the state as part of its stated expansion plans.”

While the credit crisis unfolds, long-term strategic investors are accumulating real assets. We would classify Russia and China as long- term strategic investors, keenly interested in Aussie resources. And if local firms lack the capital to bring production to market quickly, the foreigners are obviously eager to help, in exchange for equity.

Rusal’s move comes “As Russian companies actively increase their presence in Australia…Russian steel giant Magnitogorsk Iron and Steel works notifying the Federal Government this week of plans to take a $1.5 billion stake in Fortesuce Metals Group.” Russian Agriculture Minister Alexei Gordeyev told a Brisbane audience, “We would say that today, Australia is becoming for us a closer and more familiar region.”

Note to bottleshops: buy more vodka.

Dan Denning
The Daily Reckoning Australia

Dan Denning
Dan Denning examines the geopolitical and economic events that can affect your investments domestically. He raises the questions you need to answer, in order to survive financially in these turbulent times.
Reddit

Comments

  1. Dear Dan,

    Is there any possibility to find out the contacts of this RUSAL comany in Queensland?
    I am an Russian/English interpreter and looking for some more qualified position in Russian company.

    Thank you in advance for your kind assistance!

    Kind regards,
    Anna

    Anna Tonkonogova
    May 6, 2009
    Reply

Leave a Reply

Letters will be edited for clarity, punctuation, spelling and length. Abusive or off-topic comments will not be posted. We will not post all comments.
If you would prefer to email the editor, you can do so by sending an email to letters@dailyreckoning.com.au