United Rusal : UC RUSAL increases corundum production at the Boksitogorsk alumina refinery

Moscow, 19 May 2017 - UC RUSAL (SEHK: 486, Euronext: RUSAL/RUAL, Moscow Exchange: RUAL/RUALR), a leading global aluminium producer, announces that it has completed the modernization programme at the Boksitogorsk Alumina Refinery. The total amount of investment in the project amounted to USD1.65 mln.

The project which was launched in October 2015 and ran through to May 2017 involved the installation of certain up-to-date crushing and processing equipment designed to increase the total output of the corundum products of the refinery up to 79 thousand tonnes per annum. In particular, the production of refractory materials and abrasives will be increased by 6 thousand tonnes and 4 thousand tonnes per annum accordingly.

Corundum is a refractory and chemically ultra-hard material based on aluminum oxide. It is used in the metallurgical industry and engineering manufacturing for the production of abrasive tools and fire-resistant, refractory products.

The commissioned production facility consists of equipment which was tailored to the Boksitogorsk Alumina Refinery and was designed and manufactured in Russia. The facility modernization was aimed to ensure that the corundum product quality meets international market standards, which already account for 50% of the plants' corundum products sales in the first four months of 2017.

'The commissioning of new production facility at the Boksitogorsk Alumina Refinery is of great importance for the metallurgical industry of the Russian Federation, since the entity manufactures more than 100 types of corundum products including abrasive grains and powders, micro abrasive powders, refractory grits and ramming mixtures. The implementation of such up-to-date technologies will improve the working conditions of our employees and will comply with the strict environmental standards,' Vladislav Soloviev, CEO of RUSAL commented.

In 2016, the Boksitogorsk Alumina Refinery supplied a record 69 thousand tonnes of corundum products. The increase in sales was due to the improvement in quality of end products, resulting in a growing demand for refractory fractions of corundum products in the domestic market and strong export to international markets, including to European customers.