Government 'keen' to keep Aughinish Alumina operating amid fears of sanctions

The Aughinish Alumina plant near Askeaton, Co. Limerick photographed in 1998. Picture: Kieran Clancy

The Government is "keen" to keep the Aughinish Alumina plant operating amid uncertainty about whether it will be affected by EU sanctions on Russia.

The plant is owned by Russian company Rusal and its majority shareholder EN+ but both have thus far avoided sanctions. However, Oleg Deripaska, an industrialist who has had close links with the British political establishment, has been sanctioned by the UK in the last fortnight and the US in 2018. The latter sanctions forced Mr Deripaska to relinquish his majority stake in EN+.

Rusal employs more than 450 people at Aughinish, which is Europe’s biggest alumina producer, and fears have been raised that sanctions could shut down the plant and cost jobs in the area.

A statement from the Department of Enterprise, Trade and Employment said that both Tánaiste Leo Varadkar and Finance Minister Paschal Donohoe, as well as government agencies, have been involved in discussions around the plant.

"There has been ongoing engagement between the Government, IDA Ireland and the company, including a meeting with the Tánaiste and Minister Donohoe earlier this week," it said: 

The company is a very important supplier of alumina to Europe and an important element of the global alumina supply chain. It is also a significant employer in Limerick. The Government is keen that the plant will continue to operate. 

"The Department and its Agencies continue to assess the implications of recent developments and are closely monitoring the situation."

Limerick TD and Junior Minister Niall Collins told the Irish Examiner on Thursday that it was "not hypocritical" for the Irish Government to be in favour of sanctions while seeking to keep the plant open. He said the group had "taken steps to remove Russian influence" in its ownership. He said Mr Deripaska is not allowed to sell any shareholding or "cash in on any shareholding" and that the US sanctions were already "stringent". He added that American Christopher Burnham is now the chair of the company.

"Whilst there is a connected Russian ownership, the company in Limerick, the staff is entirely 100% Irish, the management is 100% Irish, the raw material product comes from West Africa, it's refined in Limerick and it's shipped right around Europe — predominantly to smelters right around Europe and used in production processes for cars and mobile phones.

Aughinish alumina in the background as a general cargo ship turns in the Shannon Estuary at Foynes Harbour, Co Limerick. Picture: Dan Linehan

"So I don't think it's at all hypocritical to argue that any sanctions which are imposed shouldn't blow back onto Aughinish in Limerick. And that's why we're keen to try and safeguard and ensure from the very start of this, that in the designing of sanctions that they impact the right people, the key people in Russia and that they hurt people they're supposed to, and force them to think about what they're doing, rather than costing us jobs here in Ireland."

European Affairs Minister Thomas Byrne said the factory is "an essential service".

He told RTÉ's Morning Ireland that he was not involved in discussions but that if Rusal falls under sanctions, the Government will work to ensure the plant continues operating due to its importance in the European aluminium market.

Mr Byrne said it was important that whatever sanctions are imposed must ensure that "Russia feels the pinch".

It is expected that new sanctions may be announced at Friday's European Council meeting in Brussels.