UC RUSAL, the world's largest aluminium producer, announces the launch of a project for the extraction of low iron bauxite in the Republic of Komi by Timan Bauxite, a subsidiary of the Company. Future bauxite production is estimated at 250,000 tonnes per year.

Bauxite will be extracted by open-cut mining at the Middle Timan bauxite deposit. Timan Bauxite will launch preparatory works at the new mine in order to produce the first 90,000 tonnes of bauxite by 2012.

"This is a new kind of production for us. Previously, this type of bauxite has neither been mined nor used by us," commented Valery Matvienko, Head of Alumina Division East. "However, the market analysis shows that there is a quite high demand for this product. We already have a number of agreements with prospective buyers and, consequently, are confident in the project's prospects."

In addition, in 2011 Timan Bauxite plans to acquire a highly efficient crushing and sorting equipment and to start the production of basalt rubble at the deposit. Year to date, over 100 million roubles have been already invested into these two projects.

For information: the low iron bauxite is a type of bauxite with the Fe2O3 iron content of less than 4% in the calcined material. This bauxite is used for the manufacture of refractories (chamotte bricks and clay). Chamotte bricks can withstand temperatures up to 1,600 degrees; they are resistant to chemicals and have a good thermal conductivity. The bricks are also used in masonry stoves, fireplaces, building sets, thresholds of blast and other types of furnaces in metallurgy, glass manufacturing and porcelain firing.