As a result of the agreement, UC RUSAL will transfer a 50% shareholding in its Bogatyr and Severny coal assets to Samruk Holdings. The assets were transferred to UC RUSAL by Access Industries as part of the recent merger of RUSAL, SUAL and Glencore. The consideration for the 50% shareholding will be determined by an independent international authority.    

Following creation of the joint venture, the Chief Executive Officer of the new company will be UC RUSAL's representative, while the chairman of the Board will be Samruk Holding’s representative.

The joint venture has been established to serve the Kazakh and Russian markets. The coal may also be used to generate power for metals production. In addition, UC RUSAL and Samruk Holding will examine opportunities for the development of the Kazakh energy sector.

Alexander Bulygin, Chief Executive, UC RUSAL, said:
“A partnership with Kazakhstan is a key milestone in the development of our company as a diversified energy and metals corporation. Our participation in the development of coal and energy projects in Kazakhstan will allow us to expand our energy base and realize new projects, including the extraction of new kinds of raw materials and metal production. We hope our partnership with Samruk Holding will become an example of mutually beneficial cooperation between Russia and Kazakhstan, which will contribute to the economic prosperity of both countries”.

Kanat Bozumbaev, Chairman of the Board of the Samruk Holding, said:
“We are pleased to begin our cooperation with UC RUSAL, the world’s largest aluminium producer - with substantial experience of implementing projects worldwide. The joint venture signals the support offered by the Government of Kazakhstan to foreign investors whose projects and plans are consistent with state priorities. I am confident that this partnership will be the start of a successful, long-term cooperation between the two corporations, helping to foster the economic and social development of Kazakhstan.”

The total coal reserves of Bogatyr and Severny are estimated to 4.5 billion tonnes of coal. The coal production total 42 million tonnes a year, which is about 45% of all coal produced in Kazakhstan. The parties are intending to develop mining capacity to 60 millions tonnes of coal per annum.

About UC RUSAL
United Company RUSAL (www.rusal.com) is the global leader in the aluminium industry, accounting for approximately 12% and 15% of global production of aluminium and alumina respectively. The company was founded in March 2007 through the merger of RUSAL, SUAL, and the alumina assets of Glencore. UC RUSAL sells its products in 70 countries worldwide and employs 100,000 people in 19 countries, across 5 continents.