RUSAL owns ten3 aluminium smelters which are located in two countries: Russia (nine plants) and Sweden (one plant). The Company’s core asset base is located in Siberia in Russia, accounting for approximately 93% of the Company’s aluminium output in 2018. Among those, BrAZ and KrAZ together account for more than half of RUSAL’s aluminium production. The Company also owns 85% of a smelter located in Nigeria.
As at the end of 2018, the Group owns eight alumina refineries located in six countries: Ireland (one plant), Jamaica (one plant), Ukraine (one plant), Italy (one plant), Russia (three plants) and Guinea (one plant). In addition, the Company holds a 20% equity stake in QAL, an alumina refinery located in Australia. Most of the Group’s refineries have ISO 9001 certified quality control systems. Four refineries and QAL are ISO 14001 certified for environmental management and three refineries have received OHSAS 18001 certification for their health and safety management systems.
The Company’s strong alumina capacities help secure a sufficient supply for expanding the Company’s aluminium production capacity and enable leveraging favourable market conditions through third-party alumina sales.
Bauxites and nephelines are key raw materials for alumina production. In 2018, the Group was approximately 75% self-sufficient in bauxite and nepheline production.
The Group operates seven bauxite mines. RUSAL’s bauxite mines are located in four countries: Russia (two mines), Jamaica (one mine), Guyana (one mine) and Guinea (three mines). The Company’s strong bauxite capacity helps secure a sufficient supply for expanding its alumina production capacity and enables leveraging favourable market conditions through third-party bauxite sales.
The BEMO project involves the construction of the 3,000 MW Boguchany HPP and the Boguchany aluminium smelter (BoAZ) in the Krasnoyarsk Region in Siberia.
Construction of the BoAZ is divided into two stages (each stage with an annual capacity of 298 kt of aluminium). The first part of the first stage (149 kt of aluminium per annum, 168 pots) was launched in 2015 and the second part of the first stage was launched in March 2019. The second stage of BoAZ (approximately 300 kt per annum) will be considered with strategic partner RusHydro after the design capacity of first stage has been reached and is subject to the market condition and availability of project financing.
Boguchany is the fourth step of the Angara hydroelectric power chain, the largest major hydro power plant completed in Russia. Construction of the power plant was suspended during the Soviet Union due to insufficient financing, and was later resumed in May 2006 by RUSAL and RusHydro following their agreement to jointly run the BEMO project comprising Boguchany HPP (average annual electricity output at 17.6 billion kWh) and an aluminium smelter capable of producing 600 kt of metal per annum.
Boguchany HPP is 79 meters high, with its 2,587-meter-long composite gravity and rock-fill dam completed at the end of 2011 and its nine 333 MW hydro power units first commissioned from 2012 to 2014. The total installed capacity of all nine hydro units in operation amounts to 2,997 MW.
The plant commenced commercial supplies to the wholesale electricity and capacity market on 1 December 2012. Since its launch, Boguchany HPP has generated 67.62 TWh of electricity, and supplied 13.61 TWh to the wholesale electricity and capacity market in 2018.
Taishet aluminium smelter
Construction of Taishet Aluminium Smelter was started in 2006, although RUSAL decided to suspend the project in 2009 due to unfavourable market conditions. Following economic recovery and an improvement in the market conditions in 2016, RUSAL’s Board of Directors decided to resume construction of Taishet Aluminium Smelter LC-1 (first series) and approved preparatory works to resume construction. Construction of Taishet Aluminium Smelter resumed in 2017.
The project includes construction of an aluminium smelter in Taishet in the Irkutsk Region (Eastern Siberia) with the annual design capacity of the LC-1 (first series) at 352 pots or 428.5 ktand an annual electricity consumption of 6,370 million kWh. As at 31 December 2018, RUSAL had invested USD 792 million (excluding VAT) in the LC 1 (first series) construction project.