Moscow, 12 August 2021 – RUSAL (SEHK: 486, Moscow Exchange: RUAL), a leading global aluminium producer, announces that the Bogoslovsky Cable Plant (BKZ) (a joint venture of RUSAL and ELKA-Cable) is launching the production of an improved oil submersible cable made of an aluminium-zirconium alloy. The application of new insulation materials has extended the life cycle of products in the extraction process at 'difficult' wells by 50%.

The first samples of the new cable have been shipped to leading Russian oil companies. BKZ currently produces over 1,000 km of oil submersible cables per year. The ELKAOIL oil submersible cable made of aluminium alloys is an analogue of the conventional type of cable made with a copper electric conductor. However, the use of TAS, a temperature and corrosion-resistant aluminium-zirconium alloy, allows the electric conductor to become more ductile and resistant to corrosion and temperature, as aluminium can easily withstand the aggressive effects of different environments such as those high in hydrosulphuric acid.

“Using an aluminium alloy in the design makes the cable 30% cheaper and 1.5-times lighter than its copper analogues. Moreover, the product will not attract those seeking to strip out non-ferrous metals for scrap. Many companies are switching to aluminium conductor cables because they increase safety and the operational reliability of the power grid,” said Alexey Arnautov, Head of New Projects at RUSAL.

In Russia, oil submersible cables made of aluminium-zirconium alloys have been used on a pilot basis since 2014. During this period, 3,000 km of such products have been supplied to Russian oil companies. As part of the strategy to convert inefficient facilities, RUSAL management has suggested that new aluminium processing facilities should be developed at the Bogoslovsky Aluminium Smelter (BAZ) to produce competitive, high-value-added products, expand employment opportunities and create jobs. In November 2016, RUSAL and ELKA-Cable Group signed a joint venture agreement to produce cable and conductor products. Financing of the project, where each of the partners owns 50% of the equity, is being carried out on a parity basis. The total investment amounts to RUB 765 million.

The Bogoslovsky Cable Plant currently produces self-supporting insulated cables and flexible aluminium and oil submersible cables. Using unique aluminium alloys in the production process, including those containing rare-earth metals, makes it possible to maintain and improve the physical properties of the products, as well as reduce their costs by 30–40% compared to copper-based analogues.