Rusal, the world’s third largest aluminium producer, has started exploration work in the Plesetsky area of the North Onega bauxite deposit. Rusal expects to determine reserves of 250-300 Mt. The exploration now underway involves drilling 147 boreholes and the evaluation of the recovered samples. The exploration programme, estimated at $7 million, is 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 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 achieve self-sufficiency in raw materials by 2013.