Agreement between UC RUSAL and Elkem Aluminium

Today we announce that Elkem Aluminium has been chosen by UC RUSAL, one of the world's largest aluminium producers, to supply technology and know-how to their modernization programme.

Elkem Aluminium has developed and installed technology at their plant at Lista in Southern Norway that has reduced emission of greenhouse gases by 67% and increased productivity by 15%. Through the agreement, UC RUSAL will have full access to Elkem Aluminium's technological design, construction drawings, documentation and software. UC RUSAL technicians and operators will for a period of two years be visiting Elkem Aluminium Lista. The agreement has a value of about USD 20 million.
Of today's 38 million tonnes aluminium capacity in the world, approximately 5 million tonnes are based on the so-called Søderberg technology. From the traditional Søderberg process, various types of gases are emitted, including tar fumes, greenhouse gases, dust and fluoride. Over 20 years' time, Elkem has developed and patented a new technology for closing the Søderberg pots, collecting the gases and cleaning them. UC RUSAL will now have full access to this technology. UC RUSAL operates 3.5 of the world's 5 million tonnes of Søderberg capacity.
"The agreement with UC RUSAL is an important milestone for the implementation of the technology. Modernization of the Søderberg operations will increase productivity and thereby meet the increasing global demand for aluminium. It will contribute significantly to the reduction of greenhouse gases and other environmental demands," says John G. Thuestad, President & CEO of Elkem.
Elkem Aluminium has already sold the technology to US company Alcoa, and to Turkish ETI Alüminyum.
UC RUSAL is one of the world's largest aluminium companies, with 12.5% of the world's aluminium production and 100,000 employees. UC RUSAL has announced an ambitious plan to reduce greenhouse gases across the company's existing plants.
Elkem Aluminium is owned on a 50/50 basis by Elkem and the US company Alcoa. Elkem is among the world's leading companies for environmentally friendly production of metals and materials.
For further information, please contact:
John G. Thuestad, CEO, Elkem: + 47 91 13 69 01
Roy Hammer, Managing Director, Elkem Aluminium: + 47 93 25 22 01
Johan Chr. Hovland, Senior Vice President, Public Affairs, Elkem: + 47 91 76 34 91
St. Petersburg/Oslo, 9 June 2007