UC RUSAL announced the launch of a project for the extraction of low iron bauxite in the Republic of Komi by Timan Bauxite, a subsidiary of the Company. Future bauxite production is estimated at 250,000 tonnes per year.

Bauxite will be extracted by open cut mining at the Middle Timan bauxite deposit. Timan Bauxite will launch preparatory works at the new mine in order to produce the first 90,000 tonnes of bauxite by 2012.

Mr Valery Matvienko head of Alumina Division East said that this is a new kind of production for us. Previously, this type of bauxite has neither been mined nor used by us. However, the market analysis shows that there is a quite high demand for this product. We already have a number of agreements with prospective buyers and consequently are confident in the project’s prospects.