Rusal, Glencore agree aluminium deal worth up to $16.3 bln

En+ MKPAO

03/04/2020 10:23

MOSCOW, April 3 (Reuters) - Russia's Rusal  0486.HK  has
approved a new long-term aluminium supply contract with Glencore
 GLEN.L  worth up to $16.3 billion, it said in a Hong-Kong
regulatory statement on Friday.
    Swiss trader and metals producer Glencore has long been one
of the main clients of Hong Kong-listed Rusal, the world's
largest aluminium producer outside China. 
    Glencore owns a stake in Rusal parent En+ Group  ENPLq.L .
    The new contract is for 2020-2024 and can be extended for
2025, Rusal said.  urn:newsml:reuters.com:*:nFWN2BQ195
    It said its board of directors in December approved the
deal, which succeeds a previous contract which expired in late
2018. The contract requires approval from Rusal shareholders.
    Rusal, which produced 3.8 million tonnes of aluminium in
2019, will supply 6.9 million tonnes of the metal to Glencore
under the contract, including 344,760 tonnes in 2020 and around
1.6 million tonnes per year in 2021-2024.
    "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 separate comment.
    Glencore declined to comment.

 (Reporting by Anastasia Lyrchikova; additional reporting by
Zandi Shabalala; writing by Polina Devitt; editing by Jason
Neely)
 ((Polina.Devitt@thomsonreuters.com; +7 495 775 12 42; Reuters
Messaging: polina.devitt.reuters.com@reuters.net))