Moscow — 16 July 2003: SUAL group has today announced that a joint venture of SNC-Lavalin International Inc. and Hatch Associates has been awarded the contract to perform the initial phase of a bankable feasibility study (BFS) for its Komi Aluminium project. This follows a tender process in May 2003 and consultation with potential strategic partners for the project.

Work on the initial phase of the BFS has begun and is focusing on a brownfield bauxite mine expansion and the construction of a new alumina refinery. The second phase of the BFS will be awarded in the near future and will address the construction of a new aluminium smelter in the Komi Republic.

The Komi Aluminium project foresees annual production of bauxite at the Timan mine being expanded from the current 1.0 million tonnes to 6.5 million tonnes per annum, to satisfy the needs of the proposed new alumina refinery. The refinery, with a production capacity of 1.4 million tonnes of alumina per annum, will be built near the town of Ukhta and will be integrated with its own dedicated aluminium smelter.

SNC-Lavalin is the joint venture leader, and is providing engineering, project management and estimation services, while Hatch Associates is contributing technology, know-how and engineering design for the alumina refinery portion of the project.

Vladimir Kremer, Director General of Komi Aluminium and member of SUAL’s Board of Directors commented: “The joint venture of SNC-Lavalin and Hatch is perfectly suited to SUAL’s needs regarding the Komi Aluminium project. It combines the process design expertise of Hatch with the project management and execution abilities of SNC-Lavalin. With these two groups we have a solution that provides us with the best of both worlds.”

“There are many similarities between the Komi Republic and northern Canada,” said Pierre Ranger, Senior Vice-President, SNC-Lavalin Aluminum Division. “SNC-Lavalin’s experience of working in remote northern regions will be a great asset on this project, as will our world-class expertise in project management and the preparation of feasibility studies.”

“We are pleased to support SUAL’s needs for a feasibility study,” said Robert Francki, Managing Director, Hatch Light Metals Division. “Hatch’s alumina refinery specialists’ technology team combines the best in practical experience with advanced computing techniques to achieve optimised Bayer process flow-sheets for each bauxite deposit.”

Notes to Editors

Komi Aluminium is the SUAL Group’s project to develop an integrated bauxite/alumina/aluminium complex in the Komi Republic. This complex is expected to achieve annual production of up to 6.5 million tonnes of bauxite, 1.4 million tonnes of alumina and 300—600,000 tonnes of primary aluminium. The Komi bauxite deposit (Timan Bauxite) is already operational and produces about 1.0 million tonnes annually. In the third quarter of 2002, SUAL completed a 160 km private railroad that linked the bauxite deposit to the national railroad system. SUAL has invested over US$100 million in the project so far.

SNC-Lavalin is one of the leading groups of engineering and construction companies in the world, and a key player in facilities and operations management, and in the ownership, operation and maintenance of infrastructure. The SNC-Lavalin companies employ thousands of people in offices across Canada and in 30 other countries around the world and currently operate in some 100 countries.

Hatch Group is a leading global consulting, engineering, technologies, information systems, project and construction management organisation. The business units and affiliates of the Hatch Group provide a full range of technology-driven, value-adding solutions and services to clients in the mining, minerals, metals, industrial infrastructure and energy sectors through a network of more than 64 permanent offices worldwide. Programmes and projects under management have an aggregate value in excess of $15 billion.