Rusal sells 50% of Bogatyr and Severny coal mines

UC RUSAL, the world’s largest aluminium and alumina producer, within the framework of its joint venture in Kazakhstan, has signed an agreement to sell a 50% share in its coal mining operations in the Ekibastuzskoye coalfield to Samruk Holding managing state assets. The operations are the Bogatyr and Severny coal mines in the Pavlodar region of Kazakhstan.

Under the signed agreement, Samruk Holding will pay UC RUSAL $345 million for a 50% share in production of the Bogatyr and Severny coal mines. The cost of this stake was calculated by Deutsche Bank through a detailed audit and evaluation of the asset.

In November 2007 UC RUSAL and Samruk Holding signed an agreement to establish a joint venture to develop coal and energy industries in Kazakhstan. Under the joint venture, which is currently being established, UC RUSAL and Samruk Holding will produce and deliver coal to serve the Kazakh and Russian markets. The companies will also explore opportunities to use coal for the development of power generating assets as a basis for metals and mining production.

The parties will complete all legal and organizational procedures by September 2008.

United Company RUSAL (www.rusal.com) is the global leader in the aluminium industry, accounting for some 12% and 15% of global production of aluminium and alumina respectively. The company was founded in March 2007 through the merger of RUSAL, SUAL, and the alumina assets of Glencore. UC RUSAL sells its products in 70 countries worldwide and employs 100,000 people in 19 countries, across five continents.