UC RUSAL to increase its stake in Yaroslavsk GRK to 100%

UC RUSAL has entered into an agreement to acquire 50% of OOO “Yaroslavsk GRK” (Yaroslavsk Mining Company) from Russian Mining Company (RGRK). Following completion of the deal, Yaroslavsk GRK will be 100% wholly owned by RUSAL.

The acquisition is in line with RUSAL’s strategy to develop the Company’s own resource base as it looks to be self sufficient in raw materials. The deal remains subject to the Federal Antimonopoly Service’s (“FAS”) approval and is expected to complete afterwards. UC RUSAL First Deputy CEO Vladislav Soloviev said: “The acquisition of the remaining 50% stock in OOO “Yaroslavsk GRK” is the logical next step for RUSAL towards strengthening the Company's raw materials security. Amid growing commodity prices, raw material self-sufficiency is a key element of RUSAL's economic and production sustainability. This asset will cover 60% of RUSAL's current obligations in fluorspar concentrate and its future development provides the potential for full coverage of the Company’s requirements”. Yaroslavsk Mining Company is the sole producer and supplier of fluorspar concentrate in Russia. Fluorspar concentrate is used in aluminium fluoride production which, in turn, is used in primary aluminium production. Yaroslavsk GRK owns licenses for Pogranichnoe and Vosnesenskoye fluorspar deposits. Its total balance reserves of the deposits under B+C1 categories amounts to 22 million tonnes, including 19.5 million tonnes available for opencut mining, with a total reserve life of more than 20 years.