COMALCO AND NORSK HYDRO ENTER INTO LANDMARK ALUMINA DEAL
13 June 2003 - Hydro Aluminium

Under the agreement, starting with a volume of 300,000 tonnes in 2005, Comalco will supply Hydro Aluminium with 500,000 tonnes of alumina annually from 2006 through to 2030. The agreement allows for volume increases at different stages during the duration of the contract.

Hydro Aluminium plans to use the alumina to secure future supply to its Australian operations which include the wholly owned Kurri Kurri aluminium smelter and the Tomago aluminium smelter (12.4 per cent share), both in New South Wales, Australia.

Comalco will supply alumina for this contract through its 39 per cent share in Queensland Alumina Limited's refinery and its new wholly owned Comalco Alumina Refinery, due to make its first shipments in 2005, both based in Gladstone, Australia.

The contract was signed in Oslo today by Comalco Chief Executive, Mr Sam Walsh and Hydro Aluminium's Chief Executive, Mr Jon-Harald Nilsen.

Mr Jon-Harald Nilsen said, 'This long term contract, with a strong partner and the security of two world class refineries, means this is a good alignment - matching our future alumina needs with Comalco's ability to supply.'

'The agreement fits well with Hydro Aluminium's strategy to improve its primary aluminium cost position and to strengthen its leading positions mid and down stream, while securing an alumina supply portfolio with limited investment,' he said.

Mr Sam Walsh said, 'Comalco's agreement with Hydro Aluminium helps to achieve our aim of maximising the value of the Weipa bauxite resource in north Queensland, Australia. This landmark agreement is in line with our strategy to grow our alumina business and underpins our commitment to the new Comalco Alumina Refinery in Gladstone, Australia.'

Both parties are satisfied that the terms agreed are in line with industrial long-term prices.

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