UC RUSAL Plans to Invest over 100 mln Rubles in Yaroslavsk GRK in 2012
OREANDA-NEWS. June 26, 2012. UC RUSAL (SEHK: 486, Euronext: RUSAL/RUAL, MICEX-RTS: RUALR), the world’s largest aluminium producer, is pleased to announce its plan to invest over 100 million rubles in 2012 into the development and modernization of Yaroslavsk GRK (Yaroslavsk Mining Company).
The funds will enable the Company to invest in the refurbishment of existing equipment as well as the purchase of new machinery, as the depreciation of the Yaroslavsk GRK’s major equipment fleet is over 70%. These funds will also be spent on carrying out stripping operations to guarantee the stable operation of the Yaroslavsk GRK for future years.
The programme aimed at the stabilization of the ore company was launched in 2011, when RUSAL invested more than 100 million rubles in the Yaroslavsk GRK.
Yaroslavsk GRK produces between 9,500 and 10,000 tonnes of fluorspar concentrate monthly, covering over 60% of the Company’s needs for this raw material. The concentrate is supplied to the Company’s smelters as part of RUSAL’s strategy for resource security. In 2012, monthly production is expected to increase to 11,000 tonnes. In addition, Yaroslavsk GRK manufactures and sells about 900 tonnes of zinc concentrate to third-party customers every month.
“Given the current situation in the global economy and within the aluminum industry itself, issues such as business efficiency, cost reduction and safety of raw materials can be looked to be solved by the assets’ consolidation and implementation of lean manufacturing policies. Integration of Yaroslavsk GRK into the structure of UC RUSAL will provide the ore company with additional stability and the ability to withstand adverse economic challenges,” said Evgeny Ovchinnikov, UC RUSAL’s commercial director commenting on the Company’s plans to develop Yaroslavsk GRK.