UC Rusal Announces Full Year Production Results for 2012

OREANDA-NEWS. UC RUSAL (SEHK: 486, Euronext: RUSAL/RUAL, Moscow Exchange: RUALR/RUALRS), the world’s largest aluminium producer, announces its key production data for 2012.

Key highlights:

Total aluminium output reached 4,173 thousand tonnes in 2012, an increase of 1% compared to 2011 mainly due to restart of production at Sayanogorsk aluminium smelter partially interrupted in 2011 following railway bridge collapse. Total aluminium output in the fourth quarter of 2012 decreased by 2% to 1,038 thousand tonnes compared to 1,060 thousand tonnes in the fourth quarter of 2011.

Alumina output totaled 7,477 thousand tonnes in 2012, a decrease of 8% compared to 2011. Alumina output in the fourth quarter of 2012 decreased by 13% to 1,806 thousand tonnes compared to 2,082 thousand tonnes in the fourth quarter of 2011.

Bauxite production totaled 12,365 thousand tonnes in 2012, a decrease of 8% compared to 2011. Bauxite output in the fourth quarter of 2012 decreased by 15% to 2,788 thousand tonnes compared to 3,288 thousand tonnes in the fourth quarter of 2011.

Commenting on the full year production results, Oleg Deripaska, CEO of RUSAL said:

“The market developments we observed over the past year signify the beginning of a new commodity cycle highlighting the need for rational supply responses across all commodities to meet the still growing demand. In the aluminium industry, this implies production optimization aimed at substitution of the less cost-effective smelting capacities with advanced cost-competitive and energy-efficient facilities. To this end, during the second half of the year the Company started the implementation of a long term production optimization programme enabling RUSAL to prioritise production at its energy-efficient smelters in Siberia and drive the output of value added products.

“Although the pace of global recovery remains open to debate, there were clear signs towards the end of 2012 that key markets in China, other Asian countries and North America have begun to increase their aluminium consumption. These markets will remain at the forefront of aluminium demand during the year ahead, driven by the automotive sector and continued investment in large scale infrastructure projects. While the outlook for the Eurozone is less encouraging and will continue to weigh on the aluminium price in the short term, the steps the Company has taken to focus on its lower cost smelters and optimize production means RUSAL should benefit from the recovery in the other key markets.”