Board of Directors decision on RusHydro’s participation in construction of Taishet aluminium smelter
April 5, 2018. Moscow, Russia. RusHydro Group (hereinafter referred to as the ‘Group’ or the ‘Company’, ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces that the Company's Board of Directors held a regular meeting on April 3, 2018
The Board of Directors approved RusHydro’s participation in construction of Taishet aluminium smelter (TaAS), subject to the conditions determined earlier by the Board of Directors and determined additional conditions for participation in TaAS project, including:
Yuri Trutnev, Deputy Chairman of the Government of the Russian Federation - Plenipotentiary Representative of the President of the Russian Federation in the Far Eastern Federal District, Chairman of the Board of Directors of RusHydro emphasized: “Resuming construction and driving TaAS up to the rated capacity with RusHydro’s participation in the JV has high socio-economic impact not only for Irkutsk region, but for the entire Siberian Federal District. Taishet Aluminium smelter project facilitates investment, tax collection and creation of new work places in the Irkutsk region. It employs modern and efficient technologies contributing to industrial potential of Siberia. Up to 4,000 work places will be created during construction phase. Once put into commission, 880 qualified professionals will be employed at the facility”.
Nikolay Shulginov,Chairman of the Management Board – General Director commented on the decision, adopted by the Board of Directors: “RusHydro’s Management has carried out significant work in order to achieve significant improvement of conditions for the participation in Taishet Aluminium Smelter project. After completion of all preparatory procedures, including independent assessment of the stake in the project, RusHydro’s management, per instruction from the Board of Directors, will apply for approval of the transaction by the Government of the Russian Federation and directives for vote in the Board of Directors on final decision relation to RusHydro’s participation in the project”.
UC RUSAL started construction of TaAS in 2006, but in 2009 the project was suspended. The project capacity of the smelter is 428,000 tonnes of aluminium per year. The technology will be based on RA-400 cells. Historical costs incurred by UC Rusal are estimated at USD 776 mn. CAPEX required for project completion is estimated at USD 700 mn.
The information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of RusHydro. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might," the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially from these statements. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia, rapid technological and market change in our industries, as well as many other risks specifically related to RusHydro and its operations.
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