MOSCOW, Feb 22, 2010 - (ACN Newswire) - UC RUSAL (SEHK: 486)(EuroNext: RUSAL/RUAL), the world's largest aluminium and alumina producer, announces its key production data for 2009.
Key highlights:
- Total aluminium output amounted to 3.9 million tonnes in 2009, a reduction of 11% compared to 2008.
- Alumina output totaled 7.3 million tonnes in 2009, a decline of 36% as compared to 2008.
- Following weakened demand, bauxite production was reduced by 41% to 11.3 million tonnes in 2009 as compared to 2008.
- Aluminium foil and packaging production volume of about 67.8 thousand tonnes in 2009 remained practically unchanged as compared to 2008.
- Assuming growth in demand for aluminium in 2010 as forecast by the experts referred to below, in 2010 RUSAL plans to produce 3% more aluminum and 7% more alumina than in 2009.
Commenting on the today's announcement, Oleg Deripaska, CEO of RUSAL said, "The past year tested the resilience of the aluminium industry and forced every company to respond to the downturn. RUSAL acted decisively to address the consequences of the global economic downturn and enhanced its long term competitiveness through its cost-cutting programme, successful restructuring of its debt and its share listing on the Hong Kong and NYSE Euronext Paris stock exchanges. We have laid a solid foundation for the further sustainable development of our business.
We are seeing the first signs of a recovery in demand, as more countries emerge from recession, reflected in an increasing number of orders from our clients in Europe and the U.S. as well as continued economic growth in Asia which encourages our optimism about prospects for the aluminium industry. We believe that the stabilization that is now being seen will lead to consumption growth exceeding the pace of production increases."
('000t) unless otherwise indicated Year ended Change
31 Dec 2009 31 Dec 2008 y-o-y (%)
------------------------------------------------------------------------
Aluminium 3,946 4,424 -11%
Alumina 7,279 11,317 -36%
Bauxite (Mt Wet) 11.3 19.1 -41%
Aluminium foil and packaging products 67.8 68.5 -1%
Note: RUSAL assets also include two quartzite mines, one fluorite mine, two coal mines, one nepheline syenite mine and two limestone mines. The Company also has three aluminium powder metallurgy plants, and produces cryolite, aluminium fluoride and cathodes.
Market analysis
2009 was one of the toughest years on record for the global economy and commodity markets, including the aluminium industry. According to CRU Group, the global recession resulted in an 8.2% drop in demand for aluminium in 2009 compared to 2008. In 2009, the average price for aluminium dropped by 35% compared to 2008. Responding to these negative factors, in 2009, aluminium producers cut annual production by about 2.4 million tonnes and postponed launching new facilities totaling about 3.5 million tonnes a year. Overall, global aluminium production dropped 5.9% as compared to 2008 to 37.8 million tonnes in 2009.
In 2009, global prices for aluminium and other commodities were supported by the growing Chinese economy, which was aided by a USD 685 billion stimulus programme supporting economic growth through major infrastructure projects and a range of measures to stimulate demand for industrial products, including the automotive industry. According to Brook Hunt, in late 2009, the revival of developed economies initiated restocking throughout the aluminium production chain, further supporting demand.
Aluminium
UC RUSAL total attributable aluminium output amounted to 3.946 million tonnes in 2009, a reduction of 11% compared to 2008. The lower volume was in part caused by the temporary suspension of the least cost-efficient smelters, the Novokuznetsk (NkAZ), Bogoslovsk (BAZ) and Urals Aluminium Smelters (UAZ) in Russia and the Zaporozhye Aluminium Smelter (ZALK) in Ukraine.
Asset Interest
------------------------------------------------------------------------
('000t) Year ended Change
31 Dec 31 Dec y-o-y (%)
2009 2008
------------------------------------------------------------------------
Russia (Siberia)
Bratsk Aluminium Smelter (BrAZ) 100% 986 1,002 -2%
Krasnoyarsk Aluminium Smelter (KrAZ) 100% 952 1,000 -5%
Sayanogorsk Aluminium Smelter (SAZ) 100% 530 537 -1%
Novokuznetsk Aluminium Smelter (NkAZ) 100% 230 320 -28%
Irkutsk Aluminium Smelter (IrkAZ) 100% 349 358 -2%
Alukom-Taishet Aluminium Smelter 100% 2 10 -78%
Khakas Aluminium Smelter (KhAZ) 100% 297 297 0%
------------------------------------------------------------------------
Russia - Other
Bogoslovsk Aluminium Smelter (BAZ) 100% 117 186 -37%
Volgograd Aluminium Smelter (VgAZ) 100% 145 166 -12%
Urals Aluminium Smelter (UAZ) 100% 82 134 -39%
Nadvoitsy Aluminium Smelter (NAZ) 100% 57 81 -30%
Kandalaksha Aluminium Smelter (KAZ) 100% 56 75 -26%
Volkhov Aluminium Smelter (VAZ) 100% 12 24 -49%
------------------------------------------------------------------------
Ukraine
Zaporozhye Aluminium Smelter (ZALK) 97.6% 50 113 -56%
------------------------------------------------------------------------
Sweden
Kubikenborg Aluminium (KUBAL) 100% 70 112 -38%
------------------------------------------------------------------------
Nigeria
ALSCON 85.0% 11 9 17%
------------------------------------------------------------------------
Total production 3,946 4,424 - 11%
------------------------------------------------------------------------
Note: Figures in the table may be affected by rounding.
Alumina
Total attributable alumina output for UC RUSAL amounted to 7.279 million tonnes in 2009, a decline of 36% as compared to 2008. Production was cut at relatively high cost alumina facilities, such as Aughinish (Ireland) and the Zaporozhye Alumina Refinery (ZALK, Ukraine). Production was temporarily suspended at Eurallumina (Italy), Windalco (Jamaica) and Alpart (Jamaica).
Asset Interest
------------------------------------------------------------------------
('000t) Year ended Change
31 Dec 31 Dec y-o-y (%)
2009 2008
------------------------------------------------------------------------
Ireland
Aughinish Alumina 100% 1,245 1,890 -34%
------------------------------------------------------------------------
Jamaica
Alpart 65.0% 148 1,074 -86%
Windalco (Ewarton and Kirkvine Works) 93.0% 153 1,159 -87%
------------------------------------------------------------------------
Ukraine
Nikolaev Alumina Refinery (NGZ) 100% 1,495 1,446 3%
Zaporozhye Alumina Refinery (ZALK) 97.6% 29 227 -87%
------------------------------------------------------------------------
Italy
Eurallumina 100% 92 1,045 -91%
------------------------------------------------------------------------
Russia
Bogoslovsk Alumina Refinery (BAZ) 100% 1,024 1,084 -6%
Achinsk Alumina Refinery (AGK) 100% 922 1,069 -14%
Urals Alumina Refinery (UAZ) 100% 717 730 -2%
Pikalyovo Alumina Refinery (PGZ 100% - 73 -
Boxitogorsk Alumina Refinery (BGZ) 100% 131 156 -16%
------------------------------------------------------------------------
Guinea
Friguia Alumina Refinery 100% 530 593 -11%
------------------------------------------------------------------------
Australia (JV)
Queensland Alumina Ltd. (QAL) 20.0% 792 769 3%
------------------------------------------------------------------------
Total production 7,279 11,317 -36%
------------------------------------------------------------------------
Note: Figures in the table may be affected by rounding.
Bauxite
Due to weakened demand, the Company's overall bauxite production was reduced by 41% to 11.3 million tonnes in 2009 as compared to 2008.
Mine Interest
------------------------------------------------------------------------
('000t) Year ended Change
31 Dec 31 Dec y-o-y (%)
2009 2008
------------------------------------------------------------------------
Jamaica
Alpart 65,0% 0.3 3.2 -92%
Windalco (Ewarton and Kirkvine) 93,0% 0.1 3.9 -96%
------------------------------------------------------------------------
Russia
North Urals 100,0% 3.4 3.3 2%
Timan 80,0% 1.9 1.9 0%
------------------------------------------------------------------------
Guinea
Friguia 100,0% 1.7 2.0 -15%
Kindia 100,0% 2.7 3.2 -16%
------------------------------------------------------------------------
Guyana
Bauxite Co. De Guyana (BCGI) 90,0% 1.2 1.6 -23%
------------------------------------------------------------------------
Total production 11.3 19.1 -41%
------------------------------------------------------------------------
Investment projects
RUSAL will continue implementing its core investment project the construction of the Boguchanskaya Hydro Power Plant. The Company is also actively seeking project financing to revive the construction of the Taishet and Boguchansky Aluminium Smelters.
Outlook for 2010
A number of experts are forecasting that 2010 will see considerable growth of the aluminium market generated by rising demand from the automotive and packaging sectors. CRU analysts expect aluminium consumption to grow by 12.6% in 2010 as compared to 2009. Positive dynamics are expected to be driven primarily by continued economic development in China and India due to growing urbanization. Demand for aluminium is also expected to be supported by the major developed countries as the global economy revives.
Assuming the gradual restoration of the market in 2010, RUSAL plans to increase production of aluminium by 3% in 2010, compared to 2009. The increase is expected to include an increase in production at the Siberian plants, Alscon (Nigeria), KUBAL (Sweden) and potline 5 at the Irkutsk Aluminium Smelter (IrkAZ) in Russia reaching its full production capacity.
On the basis of the same assumption, RUSAL expects to increase alumina output by 7% in 2010 compared to 2009, by stabilisation of alumina production at the Achinsk Alumina Refinery (AGK), Bogoslovsk (BAZ) and Urals Aluminium Smelters (UAZ) as well as restoring production at the Boksitogorsk Alumina Refinery (BGZ) in Russia and Aughinish Alumina Refinery in Ireland.
Contact:
Media Enquiries:
RUSAL
Vera Kurochkina
+7 495 720 5170
Vera.Kurochkina@rusal.com
Investor Enquiries:
RUSAL
Catherine Shiang
+852 6391 6819
Catherine.Shiang@rusal.com
Topic: Production report
Source: RUSAL
Sectors: Metals & Mining, Daily Finance, Energy, Alternatives
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