Moscow, 26 February 2004 – RUSAL, one of the world’s largest aluminium companies, today announced the commencement of a detailed feasibility study on the expansion and modernisation of its Friguia Alumina Refinery (Guinea). The Canadian engineering company Hatch Associates will conduct the feasibility study in collaboration with VAMI (All-Russia Aluminium and Magnesium Institute), also owned by RUSAL.

The plant’s capacity will increase from 700 000 tons to about 1.4 million tons within three years of the project’s completion. Modernisation of the plant’s facilities will also raise the quality of alumina, improve the plant’s environmental performance and reduce operating costs. The feasibility study is expected to be completed by the end of 2004, and the engineering, procurement and construction stages of the project will begin in early 2005. The estimated cost of the project is about $350 million.

“The combined expertise of the two teams will ensure the best engineering solutions to achieve our goal,” Valery Matvienko, RUSAL’s production director said commenting on the project. “Friguia’s expansion is currently one of RUSAL’s most important projects which aligns exactly with our strategy to strengthen our raw material base and we will do our best to make sure it is a success.”

The Hatch Group, which incorporated both Kaiser Engineers and BHP Engineers, is a world-renowned engineering and construction organisation, which has provided industry and government with management and technical services for over 80 years.  The Hatch Associate Group has performed work in 90 countries on five continents, on assignments ranging from small, short-term studies to multi-billion-dollar projects. Hatch is also the EPCM contractor for RUSAL’s Sayanogorsk expansion project (SAZ-2).

END

About RUSAL
RUSAL, a world leader in aluminium production, was formed in March 2000 from the merger of a number of the largest smelters and other aluminium producers located in the CIS. The company accounts for 75% of Russia's primary aluminium output and 10% of the global primary aluminium output. RUSAL is a fully vertically integrated company with a complete production cycle from bauxite mining and the production of raw materials, to the production of primary metal, semi-products and aluminium-based end products. RUSAL is headquartered in Moscow.
Friguia Refinery is located in the Republic of Guinea and was constructed by Pechiney, the French aluminium company, in 1958. It annually produces around 2 million tons of bauxite and 700 000 tons of alumina. 

For further information:
RUSAL
www.RUSAL.com
Moscow
Eugenia Harrison, Moscow +7 095 720 5170, or zharrison@rusal.ru;
Fred Harrison, London + 44 207 431 7517, or fharrison@ansdellconsult.com;
Stan Neve, New York + 1 212 333 3810, or sneve@brunswickgroup.com