RIYADH, 1 May 2007 — The biggest deal in the history of the Saudi Arabian Mining Company (Maaden) was signed in Riyadh yesterday. The SR26.25 billion joint venture agreement seeks to develop the Kingdom’s huge bauxite resources and to build and operate a “mine-to-metal” industry. Capitalizing on the Kingdom’s abundant energy reserves, the fully integrated project will include bauxite mining, alumina refining, a power plant and aluminum smelting.

The agreement was signed in Riyadh in the presence of Minister of Petroleum and Mineral Resources Ali Al-Naimi, president and CEO of Maaden Abdallah E. Dabbagh and Michel Jacques, president and CEO of Alcan Primary Metal Group.

“We are delighted to participate in this outstanding project,” said Dick Evans, president and chief executive officer of Alcan Inc., at the signing ceremony held near Maaden’s headquarters.

He said that the deal was consistent with Alcan’s primary metal strategy and that this project had the potential to achieve one of the lowest operating costs in the industry and to become one of the world’s largest smelters.

“This joint venture and our recently signed phosphate agreement with SABIC (Saudi Basic Industries Corp.) represent notable milestones in Maaden’s vision of expanding the scope of mining and associated industries in the Kingdom,” said Dabbagh. “It makes mining the third pillar of Saudi industry, complementing Saudi Aramco and SABIC.”

Dabbagh said that this was the biggest deal in Saudi mining history and almost double the size of the previous record set with a SR13 billion phosphate deal recently signed with SABIC.

The agreement sets in motion one of the world’s largest vertically integrated projects of its kind. The initial phase includes the construction of a power plant delivering 1,400 megawatts, developing a 90-million-ton bauxite reserve located in Al-Zubeira in northern Saudi Arabia, building an alumina refinery with a capacity of 1.6 million tons per year and an aluminum smelter with a capacity of 720,000 tons per year.

The alumina plant, aluminum smelter and power generation facilities will be located in the new Minerals Industrial City at Ras Azzour on the east coast of the Kingdom. The first output of smelted metal is expected during the first quarter of 2011, and the first alumina processor a year later.

“We are carrying out the mandate we have had which had a very clear vision and detailed programs to explore for minerals in Saudi Arabia that would add value to the economy and provide jobs to Saudis,” said Dabbagh.

He said that diversification had been an important issue for the Kingdom for a long time. “This I think is the largest diversification in Saudi Arabia after the petrochemical industry,” he said. Asked whether he foresaw industries producing finished aluminum goods in the Kingdom, Dabbagh said: “We have already started talking about that.” He said he was looking forward to developing downstream industries together with Alcan within the Ras Azzour industrial city.

“This is already being planned and we have a large number of people from the Gulf and internationally who are interested in becoming partners in this,” he added.