Rusal Contracts Company Divisions to Execute $1.4 Billion Komi Alumina Project

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Researched by Industrial Info Resources (Sugar Land, Texas). Following an official state appraisal of the feasibility study for the construction of the aluminum bauxite and alumina complex in Russia’s Komi Republic, United Company Rusal (UCR) (Moscow, Russia) will commence construction on the project in June.

Project investment will top $1.5 billion for the 1.4 million tons per annum (mtpa) alumina refinery in the Sosnogorsk region and capacity expansion at the already operating Middle-Timan bauxite mine from 2.6 mtpa to 6.4 mtpa. The feasibility study was developed by the Russian National Aluminum and Magnesium Institute (VAMI) which is part of UCR.

The refinery will operate using state-of-the-art Bayer technology. Infrastructure to serve the refinery complex is being built at the production facility site in the region. Railway lines have been laid from the Vorkuta-Moscow line to the site and a small concrete production plant has been built in addition to administrative and general use buildings. All construction is being carried out by ECD, the engineering and construction division of UCR.

“The Komi Aluminum project is one of the company’s top strategic priorities due to its potential to strengthen UCR’s raw materials base and play a crucial role in the implementation of greenfield smelter construction projects in Russia. The fact that an in-house engineering and construction division can manage this project at all stages, from feasibility study development to commissioning and maintenance, gives UCR the opportunity to quickly and efficiently implement business ideas and maintain production dynamics,” said Valery Matvienko, Director of ECD.

The Eurasia Middle-Timan bauxite deposit has proven reserves of 260 million tons, the largest in Russia and Eurasia. The complex is expected to be commissioned at the end of 2009 and will create more than 10,000 new jobs. The start-up of the complex will provide a 40% increase in Russia’s alumina output. By completion of the project, the total amount of investment in infrastructure development in the Komi Republic is expected to reach $25 million.

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