UC RUSAL and ANTAM sign memorandum of cooperation

In accordance with the memorandum, signed on September 6, 2007 in Jakarta during the official visit of the President of Russian Federation Vladimir Putin to Indonesia, UC RUSAL and ANTAM have agreed to construct the complex across bauxite deposits located in West Kalimantan

UC RUSAL will hold 51% stake in the new JV, with ANTAM holding the remaining 49%. During September 2007 the JV partners will form a working group which, with the help of an independent appraiser, will have to both confirm bauxite reserves of the two selected deposits and complete documentation required for the JV establishment. Based on the working group findings the JV partners expect to draft the project’s preliminary technical and economic assessment in 2008.

Commenting on the memorandum Alexander Bulygin, CEO of UC RUSAL said: “Asia is one of the most dynamic and fastest growing markets in the world and Indonesia is an attractive country for business development due to the favorable investment climate. I am confident that UC RUSAL’s partnership with ANTAM will not only facilitate the introduction of state-of-the-art production facilities but will also strength UC RUSAL’s position in the region and substantially expand our raw-material base”.

Overall project budget to be defined within the financial assessment is expected to be completed in 2009. It is expected that construction of the plant will commence in 2009 and the first alumina output is scheduled for 2011.

Moreover, UC RUSAL and ANTAM plan to study opportunities for cooperation’s expansion in electric power and aluminium production.