RUSAL and Guinea Strike a Deal?
Two items: RUSAL Press Release followed by Bloomberg article.
UC RUSAL PRESS CENTER
UC RUSAL delegation visits the Republic of Guinea
Moscow, 15 June 2010 – UC RUSAL (SEHK: 486, EuroNext: RUSAL/RUAL), the world’s largest aluminium producer, announces the visit of a UC RUSAL delegation headed by Oleg Deripaska, CEO of UC RUSAL, to Guinea. Within the framework of the visit the company and the government of the country reached several agreements.
During a two-day visit, the RUSAL delegation held discussions with the Prime Minister of the Republic of Guinea Jean-Marie Dore and attended a meeting with the Acting President Brigadier General Sekouba Konate. The parties determined the major areas of focus for long-term cooperation between UC RUSAL and the Republic of Guinea and reaffirmed their commitment to a strategic partnership.
The parties paid special attention to the importance of prolonging the current tax and customs regimes as regards the Friguia bauxite and alumina complex. They also reached agreement on the schedule and terms of development of the Dian Dian bauxite deposit, the license for mining and exploration of which is held by RUSAL. RUSAL also conducted fruitful negotiations with Compagnie des Bauxites de Guinee (CBG) under the auspices of the Ministry of Mines and Geology which concluded with an agreement to establish a three-party commission that will determine the terms of the joint use of railways and port, as well as transport and materials handling equipment owned by CBG.
Commenting on the results of his visit to the Republic of Guinea, Oleg Deripaska, CEO of RUSAL said: “I am pleased that our negotiations were held in a friendly and constructive atmosphere, which enabled us to reach a number of specific decisions. Russia and Guinea have enjoyed 50 years of successful cooperation in the field of bauxite exploration and mining, and Guinean projects have strategic importance for RUSAL. Despite the unstable global economic situation and the fact that many aluminium companies around the globe were forced to adjust their production volumes, we have not decreased and do not plan to decrease bauxite and alumina production at our Guinean facilities. RUSAL has long-term projects in Guinea that will be fully completed notwithstanding the current situation on the global aluminium market. We hope that our international expertise, including the realisation of social programmes, will contribute to the development of the economy of the Republic of Guinea and to the increased prosperity of its citizens”.
UC RUSAL (www.rusal.com) is the world’s largest producer of aluminium, in 2009 accounting for approximately 10% and 10% of global production of aluminium and alumina, respectively. UC RUSAL employs about 76,000 people in 19 countries, across 5 continents. UC RUSAL markets and sells its products primarily in the European, Japanese, Korean, South East Asian and North American markets. UC RUSAL’s ordinary shares are listed on The Stock Exchange of Hong Kong Limited (Stock code: 486) and global depositary shares representing UC RUSAL’s ordinary shares are listed on the professional compartment of Euronext Paris (RUSAL for Reg S GDSs and RUAL for Rule 144A GDSs).
The information contained in this press release is for media advice only. The contents are true and accurate at the time of publishing, however, may change over time.
RusAl, Guinea Strike Deal
16 June 2010
United Company RusAl said Tuesday that it had agreed on a “strategic partnership” with Guinea and will maintain bauxite and alumina output, a year after the country ordered the company to return some assets.
CEO Oleg Deripaska met Prime Minister Jean-Marie Dore and acting President Brigadier General Sekouba Konate on a two-day visit to Guinea, the company said in a statement.
“We do not plan to decrease bauxite and alumina production at our Guinean facilities,” Deripaska said in the statement. “RusAl has long-term projects in Guinea that will be fully completed.”
The current tax and customs regimes for the Friguia plant will be maintained, while the two sides also agreed on the schedule and terms of development of the Dian Dian bauxite deposit, RusAl said.