The contract is for 2020-2024, with an option to extend past 2025. The deal, already approved by the board of Rusal, replaces a contract which expired in late 2018 and was not renewed due to the US sanctions on the company. The Russian company will supply up to 6.9 million tonnes under the deal, including 344,760 in 2020 and around 1.6 million per year from 2021 to 2024.
“This agreement provides the company with significant volumes of primary aluminium sales at market price with a number of quantitative options,” Rusal said in a comment to Reuters. Glencore declined to comment.
Glencore owns a 8.75% stake in Rusal, that is swapped in 2017 for shares in the aluminium giant’s major shareholder, EN+ Group. EN+ increased its stake to 56.88% in February. Rusal produced 3.8 million tonnes of the grey metal in 2019, against revenues of $9.7 billion.
LME aluminium was down 1.4% to $1,460.50 a tonne, after touching its lowest since Jan. 2016, at $1,459.50. Prices are down 19% this year.