Key Strategies and Future Prospects for Raw Material Diversification in Global Aluminum Production: A Case Study of UC RUSAL

Aluminum’s unique properties have led to its widespread use across multiple industries, including transportation, aviation, power generation, construction, and food packaging. In recent years, global aluminum consumption has risen significantly, with China experiencing particularly sharp growth in both production and demand. In Russia, the aluminum industry is dominated by UC RUSAL, which consolidates all Russian aluminum and alumina production facilities, along with several international operations and mining assets. Despite its global presence, the company remains heavily reliant on imported raw materials (approximately 50%) for alumina production, resulting in reduced operational efficiency and declining output. This dependency has necessitated the exploration of strategies to diversify raw material sources across different stages of the aluminum production value chain. This study identifies and classifies key diversification options for global aluminum companies, focusing on secondary aluminum production, primary aluminum production, and alumina extraction from mined minerals, industrial waste, and by-products. The options were evaluated based on predefined criteria (feasibility, cost per Mg of alumina, logistics, alumina output, and economic security), and two options were selected. The research substantiates the feasibility of diversifying production through nepheline utilization. For the medium term, an economic efficiency assessment was conducted for a proposed 30% capacity expansion at the Pikalevo Alumina Refinery. Additionally, long-term opportunities for increasing aluminum output were identified, including leveraging foreign assets while accounting for associated risks.