OREANDA-NEWS. September 19, 2011. UC RUSAL (SEHK: 486, Euronext: RUSAL/RUAL, MICEX: RUALR, RTS: RUAL), the world’s largest aluminium producer, is pleased to announce that it has entered into an agreement to acquire a 35% stake in the Alumina Partners of Jamaica, (“Alpart”) from Norway’s Norsk Hydro ASA. Following completion of the USD46 million deal, Alpart will be 100% owned by RUSAL.

The acquisition is in line with RUSAL’s strategy to develop the Company’s own reserve base as it looks to be self sufficient in raw materials. Nearly 5% of the world’s bauxite reserves can be found in Jamaica and the country has a well-developed alumina production infrastructure.

Vladislav Soloviev, UC RUSAL’s First Deputy CEO, commented: “Currently, active construction of large aluminium smelters is not accompanied by the production of new alumina capacities. We believe that RUSAL’s internal demand for alumina may rise by 2 million tonnes per annum over the next 3-4 years. As aluminium demand continues to grow globally, we anticipate that in the medium to long term, the limited alumina production capacities will result in demand exceeding supply and lead to rising alumina prices and aluminium production costs. RUSAL’s move to acquire the remaining 35% stake in Alpart, helps the Company to become self sufficient in raw materials and protect it from such impacts.”

Operations were temporarily idled at Alpart in 2009 due to a difficult situation in the industry. RUSAL is currently developing operationally efficient ways to resume production at the complex, by converting to coal and gas and other cost-cutting processes (including bauxite mining costs) through a more effective production management and cooperation with local suppliers.

Alpart is a large production complex in Jamaica, which uses its own bauxite mines to feed alumina production. Annual production capacity of the complex is 1,673 thousand tonnes of cell-grade alumina and 4.9 million tonnes of bauxite.

RUSAL acquired a 65% stake in Alpart in 2007 following the merger of the Company’s assets with the alumina assets of Swiss-based Glencore.

The deal to acquire the remaining 35% stake in Alpart from Norsk Hydro ASA has been approved by RUSAL’s international lenders in accordance with the International Override Agreement.