RusAl to build $1.5 billion alumina plant in Komi

MOSCOW, May 21 - United Company RusAl, the world's largest producer of aluminum and alumina, said Monday it will start building Eurasia's largest bauxite and alumina plant, worth $1.5 billion, in the Republic of Komi in northern Russia in June.

Under the project, RusAl will build a plant with a capacity of 1.4 million metric tons a year in the Sosnogorsk District and increase bauxite output at the Middle Timan bauxite mine from 2.6 million to 6.4 million metric tons a year.

The Middle Timan bauxite field, which is located 150 km northwest of Ukhta in central Komi, is the largest in Russia and Eurasia and its proven reserves amount to some 260 million metric tons.

The launch of the plant in late 2009 will create over 10,000 new jobs and could increase Russian alumina output more than 40%. Investment in the plant will amount to some $25 million.

United Company RusAl is the global aluminum leader and exports its products to 70 countries. The company was established in March 2007 through a merger between Russian aluminum giants Rusal and SUAL and Swiss Glencore's alumina assets. UC RusAl accounts for 12.5% and 16% of the global aluminum and alumina markets, respectively. The company, which has 100,000 employees, has offices in 17 countries on five continents.