The latest results of continuous environmental monitoring around the Middle -Timan Bauxite Mine, operational since 1998, confirm that the water quality upstream in the neighbouring Vym and Vorykva Rivers is good and fully consistent with the requirements for salmon breeding.

These conclusions, based on data gathered in 2003, stem from a programme of environmental monitoring being carried out by scientists from the Komi Institute of Biology, part of the Ural Section of the Russian Academy of Science.

Anatoliy Taskaev, Director of the Komi Institute of Biology, said «We have been carrying out environmental monitoring in the Timan area since the 1960s and took initial soil and water samples, as well as samples from the forest environment. We also took additional samples when construction and operation of the mine began. If these samples show us the mine's operations have impacted the environment negatively then, by continuously monitoring the area, as laid down by the mine's current operator Timan Bauxite, we will recommend relevant mitigation measures to reduce this negative impact where possible.»

The current research programme, begun in 2002 and undertaken as part of the programme of continuous environmental monitoring at the Middle Timan Bauxite Mine, will be continued throughout 2004. The monitoring data will also contribute to the Environmental Impact Assessment of the prospective expansion of the Mine, which envisages annual output increase from 1 million tonne to approximately 6.5 million tonnes.

The draft technical requirements for this assessment were released to the public in Syktyvkar last month and are currently being debated, publicly, by the interested parties.

Notes to Editors:

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 2.1billion. Extraction of bauxite at the mine began in 1998.