United Rusal : RUSAL and ENERGOPROM entered into long-term contract for supply of carbon-graphite products

RUSAL and ENERGOPROM entered into long-term contract for supply of carbon-graphite products

Moscow, 16 January 2018 - UC RUSAL (SEHK: 486, Euronext: RUSAL/RUAL, Moscow Exchange: RUAL), a leading global aluminium producer, and ENERGOPROM Group, a leading Russian company specialized in carbon and graphite production, are pleased to announce the signing of a 5-year Contract for supply of cathode blocks in the total volume of 21.5 thousand tonnes per annum.

In accordance with the agreements reached, from 2018 to 2022 ENERGOPROM will cover up to 70% of the total demand for coal-graphite raw materials of RUSAL's smelters. The products will be shipped from the Novosibirsk Electrode Plant - the largest electrode production in Russia.

Vladislav Soloviev, CEO of RUSAL, commented: 'The security of raw materials supply is one of RUSAL's long-term priorities that ensures stable operation of our production facilities. A fixed price, which is a condition of the five-year contract, will help to mitigate risks related to imports, as prior to signing of this contract the vast majority of carbon-graphite products for the aluminum plants had been supplied from abroad.'

Victor Nechuyatov, general director of the group 'ENERGOPROM', commented: 'This is the first long-term contract for the entire period of more than 40 years of cooperation between the companies. Confidence in the long-term demand for our products will allow us to plan long-term investments in the modernization and expansion of production capacities.'

Cathode blocks are critical materials for production of primary aluminium, they are used for lining of side walls and bottom of pots.