31.10.2011 – 18:32

AMAG Austria Metall AG

EANS-Adhoc: AMAG Austria Metall AG
Milestone for plant expansion in Canada achieved by signing a Memorandum of Understanding

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Contracts/MoU Alouette signed

31.10.2011

- Foundations for plant expansion have been laid by agreeing on cornerstones for
energy requirements to be supplied from hydropower until 2041
- Increase in smelter's connected load by 500 MW (from the current 895 MW), with
35 MW being available as of now
- Capacity scheduled to be enlarged from current level of 575,000 tons (AMAG's
share: 115,000 tons) per year to 930,000 tons (AMAG's share: 186,000 tons) 
- Anticipated investment costs: 1.5 billion Canadian dollars, AMAG's share: 20%
- Next steps: conclusion of power supply contract on basis of MoU, inviting
tenders for plants and selecting supplier, final decision to be taken by owners
of Alouette

On 31 October 2011, representatives of the Alouette smelter, in which AMAG holds
a 20% share, and of the Quebec Government signed a Memorandum of Understanding
(MoU) in Sept Îles concerning the supply of electric power to the smelter. The
agreement fixes the key terms for purchasing electricity until 2041. This lays
the foundation for the electrical energy requirements of the plant to be
supplied from hydropower for the life of the contract. Over and above the
current connected load of 895 MW, additional electrical power of 500 MW will
then be available (35 MW of which as of now). Another subject of the agreement
is the prolongation of the electricity supply contracts for the existing plant
until 2041 on the same terms. 

The scheduled expansion of its production capacity from the current level of
575,000 tons of primary aluminium per year to approximately 930,000 tons after
expansion has been completed will allow Alouette to further improve its position
among the best and largest smelters worldwide. As the additional electric power
needed will be generated from hydropower, the added quantities will also be
produced in a resource-conserving manner.

Initial estimates concerning the volume of investments required for constructing
the new plant amount to approximately 1.5 billion Canadian dollars, 20% of which
are to be borne by AMAG. Additional investments are aimed at further developing
the technology that is being applied. The next steps to be taken within the
scope of the project include the signing of the electricity supply contracts on
the basis of the MoU, inviting tenders for the plants, negotiating the tenders
submitted and selecting the suppliers, and the owners  taking the final
decision.

end of ad-hoc-announcement
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About Alouette
Alouette was founded in 1992. With approx. 1,000 employees and an annual
production volume of 575,000 tons of primary aluminium, Alouette is the biggest
smelter in North America, which also makes it one of the largest facilities of
its type worldwide. In terms of energy efficiency measured by specific
consumption of electrical energy per ton of primary aluminium, Alouette occupies
a top position on the global level. Also from an ecological viewpoint, Alouette
on account of its excellent carbon footprint which results from the use of
hydropower sets global standards. The owners of Alouette and their respective
shareholdings are AMAG Austria Metall AG (20%), Rio Tinto Alcan (40%), Norsk
Hydro (20%) and SGF/Marubeni (20%). Within AMAG, the business of Alouette is
attributed to the Metal Division.

About AMAG Group
AMAG is a leading Austrian manufacturer of primary aluminium and high-quality
aluminium cast and flat rolled products for various different industries such as
the aircraft, automotive, sports equipment, lighting, mechanical engineering,
construction and packaging industries. With 1,175 employees, the company
achieved sales of EUR 728 million and EBITDA of EUR 139 million in the 2010
fiscal year.

Further inquiry note:
CFO Gerald Mayer
Phone: +43 (0) 7722-801-2208

Gerald Wechselauer
Head of Investor Relations
Phone:   +43 (0) 7722-801-2203 
Email:  Gerald.Wechselauer@amag.at
Website: www.amag.at

end of announcement                               euro adhoc 
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issuer:      AMAG Austria Metall AG
             Lamprechtshausnerstraße 61
             A-5282 Ranshofen
phone:       +43 7722 801 0
FAX:         +43 7722 809 498
mail:         investorrelations@amag.at
WWW:      www.amag.at
sector:      Metal Goods & Engineering
ISIN:        AT00000AMAG3
indexes:     Prime Market
stockmarkets: official dealing: Wien 
language:   English