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15 April
Moscow,
Dow Jones
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MOSCOW (Dow Jones)-Russia’s United Co. Rusal Tuesday said primary aluminum output rose 9.4% on the year during the first quarter of 2008 to 1.10 million tons. Rusal, the world’s biggest producer of that metal, also said its expects aluminum prices to rise, despite already hitting record levels earlier this year. Rusal attributed the rise in output to the launch of its Khakas Aluminum Smelter at full capacity, the February launch of the ALSCON plant in Nigeria, higher output at the Irkutsk Aluminum Smelter, continued modernization and better efficiency. It said alumina production rose 3.5% to 2.84 million tons thanks to steps to raise volumes at its Nikolaev Alumina Refinery, technical and output improvements at its Achinsk Alumina Refinery and the stabilization of production at its Fria bauxite mining complex in Guinea. Bauxite output rose 13% to 4.54 million tons, aided by the steady production at Fria and the installation of new equipment at the Compagnie des Bauxites de Kindia in Guinea and the Bauxite Company of Guyana. "The first three months of 2008 saw stable growth of all production figures, demonstrating how successful the three way merger has been in its first year," Rusal Chief Executive Alexander Bulygin said, referring to the 2006 deal between Russian Aluminum, Sual and Swiss trader Glencore which created the company. Looking ahead, Bulygin said aluminum prices would likely exceed the $3,180-a-ton record set earlier this year on the London Metals Exchange. "We believe that this is sustainable and expect to see further rises in aluminum prices. Growth will be driven by a combination of increased demand for metals in China and the delay in launching new projects by global majors worldwide due to the lack of raw materials and electricity, as well as the increasing costs of production because of the weak U.S. dollar and high energy prices," Bulygin said. | |||