OREANDA-NEWS. On 18 July 2008 was announced, that UC RUSAL, the world’s largest aluminium and alumina producer, is pleased to announce its production and summary financial results for the first half of 2008.

Highlights*

Bauxite mining reached 9,044,615 tonnes, up 6.5% compared to the first half of 2007

Alumina production rose by 1.4%, amounting to 5,659,921 tonnes

Aluminium production increased by 7.8% to 2,196,262 tonnes

Output of high value-added casthouse products increased by 13.8% and its share of total aluminium production reached 52

Foil production increased by 11

Total revenues grew by 14% to USUSD  8 billion compared to the first half of 2007

Revenues from sales on the Russian market increased by 16.2% to USUSD  1.8 billion

Revenues from sales outside Russia rose by 13% to USUSD  6.2 billion

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*Figures for H1 2007 reflect the combined production results of United Company RUSAL, formed through the completion of the merger of RUSAL, SUAL and Glencore’s alumina assets. Figures are preliminary and may be revised following audit completion.

Commenting on the half-year results, Alexander Bulygin, UC RUSAL CEO, said:

“We delivered strong growth across the entire range of our products in the first six months of 2008.   Such performance is a result of our new plants reaching full capacity and the continuing successful environmental upgrade programme at existing and newly acquired plants, which is the key element of our sustainable development strategy. The launch of new potrooms at the Irkutsk Aluminium Smelter, growing production at the Alscon Aluminium Smelter in Nigeria, active construction of the Taishet and Boguchansk Aluminium Smelters, as well as projects to expand our energy base will enable us to further increase the company’s production output and strengthen our competitive advantages to capitalise on the favourable conditions in the global aluminium market.”

“Our success and competitiveness in the aluminium sector provides a strong platform for UC RUSAL’s further development as a global metals and mining corporation. In April, we completed the acquisition of a blocking stake in MMC Norilsk Nickel, which marked a significant step towards achieving our strategic goal”, Alexander Bulygin concluded.     

Key projects and initiatives

UC RUSAL finalised the acquisition of 25% plus two shares of MMC Norilsk Nickel from ONEXIM group.

The company launched two new potrooms at the Irkutsk Aluminium Smelter (IrkAZ). The new production facility will boost annual aluminium production capacity by more than 170,000 tonnes, with total investment in the project exceeding USUSD  600 million. Another USUSD  50 million will be invested in casthouse production expansion at IrkAZ.

UC RUSAL relaunched production at the Alscon Aluminium Smelter in Nigeria in February 2008 as a result of a large-scale modernisation programme.  The smelter will reach its full capacity of 197,000 tonnes per annum in 2010. Total investment in the smelter’s modernisation will amount to approximately USUSD  300 million.

UC RUSAL has acquired the Baoguan cathode plant in March 2008 to expand its own cathode production capacity in China.  The plant’s annual capacity is currently 9,300 tonnes of cathode blocks and the company plans to increase this to 20,900 tonnes by 2010. The total investment in the plant’s development will amount to over USUSD  20 million.

The Krasnoyarsk Aluminum Smelter launched test production of colloidal anode paste, which is the component of the second stage of the environmental upgrade of the company’s largest aluminium smelters. The total investment in this colloidal anode paste project will amount to USUSD  25 million

UC RUSAL together with the International Aluminium Institute (IAI) launched the Global Technology and Innovation Research Project aimed at encouraging greater use of aluminium and its applications. Over the next three years, the Global Technology and Innovation Project will select the most ground breaking ideas and research projects, with the aim of expanding the use of aluminium and identifying innovative and sustainable applications for aluminium products. UC RUSAL will invest more than USUSD  2 million in the programme.

The significant growth of 7.8% in primary aluminium production is due to the ramp up of production at the Khakas Aluminium Smelter, which achieved its full capacity of 300,000 tonnes per annum, the launch of the Alscon Aluminium Smelter in Nigeria, the fifth potline at the Irkutsk Aluminium Smelter coming on stream, as well as the continued modernisation of existing production facilities and a programme of efficiency enhancements at the Bratsk Aluminium Smelter and other UC RUSAL’s aluminium smelters.

The 1.4% increase in alumina production resulted from improvements to the efficiency of production management at UC RUSAL’s refineries, increase of production at Aughinish Alumina (Ireland), the Nikolaev Alumina Refinery (Ukraine) as well as the enhancement of production processes at the Achinsk Alumina Refinery, the bauxite mining complex in Fria (Guinea) and Alpart Alumina Refinery (Jamaica).

The increase in bauxite mining up 6.5% is due to the installation of new loading and transportation equipment at the Compagnie des Bauxites de Kindia (Guinea) and the installation of additional production equipment at the Bauxite Company of Guyana, as well as the stabilization of production at the bauxite and alumina complexes in Guinea.

Production of aluminium foil increased by 11% as result of the launch of ARMENAL Foil Mill’s full capacity and the increase of foil production at Sayana Foil due to the installation of new production equipment and synergy of the creation of the UC RUSAL.

Continued growth in demand for silicon in Russia and worldwide as well as the optimisation of production and management systems at Silicon and Ural Silicon plants provided for a considerable increase in silicon of  9.3%.