The draft technical requirements for the Environmental Impact Assessment of the prospective expansion of the Middle-Timan Bauxite Mine (STBR) have been presented today at a special seminar in Syktyvkar hosted by the Komi Biological Institute (Scientific Centre of the Russian Academy of Sciences).

The seminar was attended by representatives of ZAO Komi Aluminium, the Council for Scientific and Industrial Research (CSIR) and other stakeholders, such as the national and municipal authorities, as well as scientific and research institutions.

The seminar is part of an ongoing programme of public hearings and information disclosure, which began in September 2003, when the first public hearings were conducted in the Knyazhpogozhsk district of the Komi Republic where the mine operates.

The proposed expansion of the mine that will see annual bauxite production rising to 2.5 million before increasing further to 6.5 million tonnes is essential to the realisation of the Komi Aluminium project. The project foresees construction of a modern alumina refinery and an aluminium smelter in Komi. The likely impact of the planned complex on the natural and social environment is being assessed in response to the legal requirements of the Russian Federation and the requirements of international best practice. All interested parties will be kept continuously informed of the criteria and findings of the assessment.

«Operating in alignment with the highest environmental standards, and conducting business in a socially responsible manner is one of the key principles in our company,» says Director-General of ZAO Komi Aluminium, Vladimir Kremer. «This is also consistent with the requirements set out by the international organisations who are participating in the project. It is also crucial that any future investors are satisfied the project will continue to operate within these standards.»

The project's draft feasibility study has been prepared based on findings of the mine's preliminary ecological audit. After a discussion period of 30 days, followed by any necessary adjustments to the document, the results of the assessment will be made public, together with the national environmental audit for the mine expansion project.

Notes to Editors:

The CSIR (Council for Scientific and Industrial Research) is one of the world's largest companies involved in scientific and technological research, including the assessment of environmental impacts in line with international and Russian requirements. Founded in 1945, the company is the global leader in the environmental and social assessment of aluminium projects.

In 2003 the Middle Timan Bauxite Mine produced approx. 1 million tonnes of bauxite. The expected annual capacity of the alumina refinery is 1.4 million tonnes, whilst the capacity of the new smelter is forecast to be between 300,000 — 500,000 tonnes per annum of primary aluminium. The estimated volume of investments in the Komi Aluminium project is anticipated to be USD 2.1 billion. Extraction of bauxite at the mine began in 1998.