RUSAL H1 post-merger aluminium, alumina output up

United Company RUSAL, which produces an eighth of the world's aluminium, said on Thursday output in the first half of 2007 was 3.8 percent higher than the combined production of its three shareholders a year ago. UC RUSAL said it produced 2.04 million tonnes of primary aluminium including value-added casthouse products in the first half of this year. The company was formed in March by a merger between Russian producers RUSAL and SUAL and assets of Switzerland-based commodities trader Glencore. RUSAL, owned by billionaire Oleg Deripaska, owns 66 percent of UC RUSAL, SUAL 22 percent and Glencore 12 percent. UC RUSAL is preparing a float on the London stock market this year that could raise around $8 billion from the sale of a one-quarter stake, bankers familiar with the matter say. UC RUSAL's output of alumina, from which aluminium is produced, rose 4.6 percent to 5.58 million tonnes in the same comparison. The company produces about 16 percent of the world's alumina. Output of the raw material bauxite fell 6.6 percent to 8.49 million tonnes. "These strong results for the first six months of this year -- showing an increase of alumina, aluminium and alloys production -- indicate that we have successfully integrated our assets," said Chief Executive Alexander Bulygin. "We have laid a solid foundation for further growth by commencing construction of two aluminium smelters and one alumina refinery, which by 2012 will allow us to increase aluminium production by more than 26 percent and alumina production by over 13 percent." RUSAL said overall investment in its production assets during the first half of 2007 exceeded $1.5 billion. Investment into expansion, reconstruction, modernisation and technical refurbishing of the existing facilities amounted to some $600 million. Investment into reseach and development amounted to around $25 million. The company's credit portfolio, as of July 1, 2007, reached $7.7 billion. A drop in demand for aluminium in North America contrasted with a rise in European demand. As a result, UC RUSAL increased aluminium supplies to Europe to 49 percent of its total exports, compared with 41 percent in the first half of 2006. The company said another priority market was Russia and the Commonwealth of Independent States of the former Soviet Union, where aluminium consumption in transportation, packaging and construction is steadily growing. The share of metal supplied to this region was 21 percent of UC RUSAL's total sales in the first half of 2007. UC RUSAL supplied the following output data, in tonnes: H1 2007 H1 2006 Pct change UC RUSAL RUSAL, SUAL and Glencore assets Bauxite 8,494,980 9,093,794 -6.6 Alumina 5,583,833 5,337,082 +4.6 Primary aluminium* 2,037,236 1,962,637 +3.8 Casthouse products 1,064,799 935,663 +14.0 Foil 31,828 26,226 +21.0 Powders 9,502 8,881 7.0 * Includes casthouse products