RUSAL Global Competitiveness: Building a Technological Edge TMS Conference TMS Conference February 2005 February 2005

2 We are one of the three world’s largest producers of primary aluminum and aluminum alloys We are one of the three world’s largest producers of primary aluminum and aluminum alloys We work to maintain our share in today’s global aluminum production We work to maintain our share in today’s global aluminum production RUSAL In The Global Context Production of primary aluminum in 2004 (mln mt) Alcan RUSAL Alcoa Norsk Hydro BHP BillitonSual

3 RUSAL’s Geography RUSAL’s Geography Current Production Capacity 4.8 mln mt of bauxites4.8 mln mt of bauxites 4.4 mln mt of nepheline ore4.4 mln mt of nepheline ore 3.0 mln mt of alumina3.0 mln mt of alumina 2.6 mln mt of primary aluminium and alloys2.6 mln mt of primary aluminium and alloys 0.1 mln mt of aluminium foil and flexible aluminium packaging materials0.1 mln mt of aluminium foil and flexible aluminium packaging materials 2 billion of aluminium beverage cans2 billion of aluminium beverage cans Nikolayev Refinery RUSAL Bratsk RUSAL Achinsk RUSAL Krasnoyarsk CBK RUSAL Armenal RUSAL Rostar RUSAL Dmitrov RUSAL Mosmek RUSAL China (Beijing) RUSAL America Corp. (New York) RUSAL Germany (Dusseldorf) Moscow Headquarters ACG (Friguia) * * Mining and Refining * Office Smelting Fabrication * RUSAL Rostar- Vsevolozsk * RUSAL Japan * RUSAL Asia RUSAL Novokuznetsk RUSAL Sayanogorsk RUSAl Sayanal We operate in 7 Russian regions and 11 foreign countries and employ over 60,000 people

4 RUSAL’s Competitive Power in the Global Market Advantages Advantages  RUSAL is a fast growing and dynamic company  RUSAL has access to Siberian hydro power plants (low-cost energy supplies at average price <1 cent US/kWh)  RUSAL has a strong engineering and technological R&D base (ETC and VAMI), which never stops building up Weaknesses Weaknesses  Remoteness of our smelters from our customers  Most of our aluminum is produced using Soderberg technology

5 Development of RUSAL Technologies Our goal is to get ourselves our own competitive technologies which will help RUSAL achieve best possible technical, economical and environmental performance and reduce our capex/opex per tonne of Al Our goal is to get ourselves our own competitive technologies which will help RUSAL achieve best possible technical, economical and environmental performance and reduce our capex/opex per tonne of Al RUSAL Technologies Development of New Technologies (design powerful cells, invent new alloys, raise density of current and cut noxious emissions) Modernisation of The Existing Technologies (upgrade Soderberg technology, raise density of current density and cut noxious emissions) Modernisation & Development of New Plant Process Equipment (RUSAL’s Industrial Park in Russia with the involvement of foreign equipment manufacturers and suppliers, eg. HENCON, NKM, MEGATHERM, PYROTEK and others)

6 New Technologies: RA-300  Design of a new cell (RA-300) with the following technical parameters: Amperage кА Current efficiency - >94% Energy consumption - <14,000 kWh per tonne of Al  Introduction of an efficient automatic process control (SAAT)

7 New Technologies: RA- 400 (research is still underway) Anticipated Technical Parameters current, kA400 current efficiency, % 95 voltage, V4.25 output per one cell per day, kg Al3064 electricity consumption, kWh per tonne of Al anode consumption net/gross, kg/t420/540 alumina consumption, kg per one produced tonne of Al1910 cell life cycle, months more than 60

8 Comparison of RUSAL’s Technologies RA-300 C-255C-280RA-400 (anticipated) Reduction in opex vs. C- 255 (in % per tonne of Al) 100%98.88%98.76%94.08% Reduction in capex vs. C- 255 (in % per tonne of Al)100%93.86%85.98%81.63% Total reduction in fluoride emissions vs. C-255 (in % per tonne of Al) 100% 80%70%60%

9 Soderberg Process Modernisation Programme: Our Soderberg Process Modernisation Programme: Our Priorities REDUCE roof emissions polynuclear aromatic hydrocarbons and carbon monoxide harmful environmental impact of sulphides ORGANISE disposal of fluoride wastes RAISE amperage at cells

10 Modernisation: En Modernisation: Environmental Solutions for Soderberg Technology Short-term Outlook strengthen efficiency of today’s gas treatment facilities introduce modern automated alumina point feed systems introduce dry scrubbers (for treatment of sulphides) implement dry anode paste process continue implementation of plant process automation focus on improving quality of metal (less ferrous impurities)

11 Modernisation: Modernisation: Environmental Solutions for Soderberg Technology Long-term Outlook: install additional exhaust hoods at pot cells elimination of petroleum oil when replacing anode pins install enhanced gas ducts on new cells optimise rates of raw materials consumption in smelting process with the focus on reducing total emissions and launch production of anode paste (<22% content of high temperature pitch)

12 Development of RUSAL TODAY: - Modernisation of BrAZ, NkAZ and KrAZ - RA-300 for KhakAZ (SAZ Expansion) – 320,000 Al tpa TOMORROW: - Irkutsk Smelter – 600,000 Al tpa - RA-400 is envisaged for next generation of RUSAL’s smelters - RUSAL is to reach annual output of 5 mln Al tpa by 2013