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2008 June 9   07:11

RusAl to spend over $300mln on terminals in Ust-Luga port

United Company RusAl and Ust-Luga Company, which is building a sea merchant port at Ust-Luga in the Gulf of Finland outside St. Petersburg, signed a memorandum on implementing a project to build the terminals. The company will spend over $300 million on building two terminals to supply aluminum products and alumina to world markets, press center of Ust-Luga Company informs.

Under the document, the parties intend to bring the terminals into operation by 2011, with initial handling volumes of 2.5 million metric tons of alumina and 2 million metric tons of aluminum per year. The capacity of both terminals is expected to rise to 4 million metric tons of alumina and 3 million metric tons of aluminum annually, the statement said.

The project will be RusAl's first step toward implementing a program to create its own specialized port capacity to enable the efficient transshipment of raw materials and finished products, in view of the company's plans to boost output.

United Company RUSAL is the global leader in the aluminium industry, accounting for approximately 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 5 continents.

Ust-Luga Company OJSC was founded in 1992. It is the customer-developer of the sea trade port of Ust-Luga (Ust-Luga Bay in the Gulf of Finland). Construction of the sea trade port of Ust-Luga is carried out within the framework of federal special-purpose program for Modernization of Russia’s Transport System at the basis of public-private partnership. The port is to service growing volumes of Russia’s foreign trade. The capacity of this multi-purpose port is up to 170 million tonnes of cargo per year. By 2010, the port’s throughput is to reach 50 million tonnes.

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