EoW July 2007

english corporate news

Borouge awards contracts for expansion project

Borouge, Singapore, has awarded contracts valued at approximately US$3 billion for Borouge 2, the major expansion project at the company’s production facilities in Ruwais, Abu Dhabi in the United Arab Emirates. The first contract, worth approximately US$1.855 billion, was awarded on a lump sum turnkey basis to Tecnimont SpA, Italy. This contract will see the development of two Borstar polypropylene plants with a combined annual capacity of 800,000 tons, and a new Borstar Enhanced PE plant with an annual capacity of 540,000 tons, to complement the existing 600,000 tons per year unit. Preliminary work on the polyolefins unit will begin immediately and is scheduled to be completed in 2010. The second contract, for an estimated value of US$1.234 billion, is with Tecnicas Reunidas SA, Spain, and was awarded on a convertible lump sum basis. This contract is to construct the offsite and utility facilities to all the associated EPC packages for the Borouge 2 project. Preliminary work will begin immediately and is also scheduled to be completed in 2010. These contract awards represent an important step in the Borouge 2 project, whichwill tripleBorouge’s annual production

Front row, seated, from left, Harri Bucht, CEO Borouge production company and Juan Ilado Arburua, vice chairman and CEO of Tecnicas Reunidas SA, of Spain, sign the estimated US$1.234 billion contract to construct the offsite and utility facilities for the Borouge 2 project expansion in Ruwais Standing, from left, are Ali Abdalla Al Fahim, senior vice president Borouge 2 Projects, and Stuart Steele, vice president sales, Tecnicas Reunidas SA

Seated, from left, Harri Bucht, CEO Borouge production company and Fabrizio Di Amato, chairman of Tecnimont SpA, of Italy, sign the US$1.855 billion contract to construct three new Borstar® polyolefins units for the Borouge 2 project. Standing behind, from left, are Ali Abdalla Al Fahim, senior vice president Borouge 2 Projects, and Roberto Abeni, director of sales petrochemicals, Tecnimont SpA

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capacity to two million tons of polyolefins. This increased capacity will enable Borouge and its customers to supply high performance products in an increasingly broad range of demanding applications. The company has already signed a US$1.3 billion contract with Linde Engineering for the construction of a new ethylene cracker. The contract was awarded to Linde on a lump sum turnkey basis, with preliminary work already under way and completion scheduled for 2010. Harald Hammer, chief executive of the Borouge marketing company, said: ”Borouge has made extraordinary achievements since its inception in 1998 and market acceptance of the Borstar range has been exceptional.

These contracts increase the momentum of the Borouge 2 expansion which will bring additional Borstar Enhanced Polyethylene and now Borstar Enhanced Polypropylene to customers across the Middle East and Asia-Pacific.” Borstar is Borealis’ proprietary technology that supports differentiated PE and PP products. It enables production of tailored plastic grades that reduce costs through efficient processability. Other benefits include short start-up times, quick transitions among grades and the capacity to produce a whole range of product mix in one cycle. Borouge – Singapore Email : info@borouge.com Website : www.borouge.com Loan deal Rusal – one of the world’s top-three aluminium producers – has secured a syndicated loan of US$500m to bring the Khakas Aluminium Smelter, Russia, up to full capacity and refinance the previously secured loans. the transaction in the syndication phase – Calyon, BLB, HSBC, Mizuho, Natixis, Sberbank of Russia, SG and SMBC. Rusal – Russia The following banks joined

Striking it rich in NorthWest Russia! Eurasia Mining has made a new platinum group metals discovery on its licence at Volchetundra in North West Russia, where the first US $10m of exploration is funded by Anglo Platinum. A drill hole on the northern half of the licence area intersected several zones of platinum mineralisation, with grades between 1.9 and 11 grams per ton of platinum and palladium. Volchetundra, near the city of Monchegorsk on Russia’s Kola Peninsula, is one of three licences held within the Eurasia/Anglo Platinum joint venture in the region. Initial appraisal work is also underway on the other licences, Monchetundra and West Imandra. Eurasia Mining Plc – UK Fax : +44 207 493 8858 Email : schaff@eurasia-mining.plc.uk Website : www.eurasiamining.co.uk

Fax : +7 495 720 5171 Email : info@rusal.ru Website : www.rusal.ru

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EuroWire – July 2007