RUSAL Begins Bauxite Exploration in North Onega Region

RUSAL, the world's third largest aluminium producer, has announced the start-up of exploration works at the Plesetsky area of the North Onega Bauxite Deposit.

The explored bauxite resources will be registered in the State Reserves Committee. The expected volume of bauxite reserves amounts to 250-300 million tones. The exploration works now underway involve drilling 147 boreholes and the evaluation of bauxites and accompanying components in the samples. The exploratory works, estimated at US$7 million, are expected to be completed by mid-2008. Based on the exploration results, a feasibility study for the construction of a bauxite mining facility will be prepared. The construction of the facility will be started no later than 2011.

RUSAL will conduct an evaluation of explored bauxite reserves and a baseline environmental assessment of the Ixinsky Deposit. To support this RUSAL has also announced a tender for the design study and development of the deposit. In addition, an expert cost-estimation will be prepared for the construction of related mine and traffic routes.

In 2004 RUSAL won a tender for the development of the Ixinsky area (except for the so-called Belovezhskaya pocket) and the exploration and development of the Plesetsky area of the North Onega Bauxite Deposit. The deposits are viewed by RUSAL as a potential platform for the construction of new alumina refineries. This project is a part of RUSAL's strategy to aim full self-sufficiency in raw materials by 2013.

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