Glossary

Aluminium oxide

Any of several forms of aluminium oxide, AI2O3, occurring naturally as corundum, or obtained by refining of bauxite ore.

An electrolysis process plant used to convert alumina to aluminium metal.

Aluminium of Kazakhstan

An earthy rock composed almost wholly of aluminium hydroxide, often formed by the intense weathering of existing rocks. It is the principal ore of aluminium.

The process used to remove unwanted material from mined ore, in order to increase the proportion of useful metal compounds (minerals).

A soft rock type composed mainly of the clay material montmorillonite. When in contact with water it has the characteristic ability to swell to many times its dry volume.

A pyrometallurgical process plant which employs hot air (blast) as an aid to reduce the mineral ore (usually iron oxides, hematite or magnetite) to its metallic element (Fe).

Bahia Minerals BV

Bahia Mineracao Limitada

Fast growing developing economies of Brazil, Russia, India and China

A development project that is close to existing industrial operations with proximity to existing infrastructure, often an extension and with known geological conditions.

A common rock forming mineral, calcium carbonate CaCO3.

Central African Mining & Exploration Company PLC

Means the design number of units that can be produced in a given time period based on operations with a normal number of shifts and maintenance interruptions.

Expenditures incurred during the process of commencing, expanding or sustaining production.

Capital expenditure

Tools employing cutting surfaces such as carbon or stainless steel for machining through materials. Also used in situations such as high-quantity production runs, where other tools would wear excessively.

A ferrochrome alloy where the percentage of chromium is between 50%–55%. This is a material charged to a steel production furnace.

Chromium spinel (Fe, Mg) O.(Fe,Al,Cr)2O3, the principal chromium ore mineral, chromium content 43%–68%.

Chemical element with symbol Cr, commonly used in steel industry to procure stainless steel.

Commonwealth of Independent States

Corporate Income Tax

A chemical element with the symbol Co. A hard, lustrous grey metal.

A washed and/or floated ore that contains elevated levels of cobalt.

After ore is leached with acid the liquid product is further purified in a chemical process known as solvent extraction (SX). The resultant liquid product from this is known as a pregnant solution (acidic metal-laden water) and is sent to a Cobalt Electro Winning (EW) Plant where the cobalt is deposited in metal form through electrolysis.

Bituminous coal from which the volatile components have been removed. Is used as a fuel and as a reducing agent in smelting.

The total value of donations and gifts in kind devoted to communities in which ENRC operates and includes donations to public funds

A material that has been processed to increase the content of the contained valuable component or mineral relative to the contained waste.

A chemical element with the symbol Cu. It is a ductile metal with very high thermal and electrical conductivity.

Cathodes are typically large plates of pure copper (>99.9% copper) produced as the final product in the smelting and refining process. Copper Cathodes are re-melted to produce wire rod, billets, cakes or ingots.

A mineral with the ideal composition AI2O3, natural alumina.

Size reduction into relatively coarse particles by stamps, crushers, or rolls.

Chromium oxide

The contamination of ore with barren wall rock leading to lower grade in the mined product than in the in situ ore itself.

The angle at which a bed, stratum, or vein is inclined from the horizontal, measured perpendicular to the strike.

A mineral, magnesium calcium carbonate, and the rock composed thereof. Used as flux in steel industry.

Democratic Republic of Congo

Technically, a circular hole drilled by forces applied percussively or rotationally. Loosely and commonly the name applies to a circular hole drilled in any manner.

Earnings Before Interest, Taxes, Depreciation and Amortisation

Eurasian Energy Corporation

Eurasian Natural Resources Corporation PLC

The process of removing impurities from mined ore, resulting in an increase in the proportion of the valuable mineral or metal component (similar to beneficiation and concentration).

Earnings per share before the Exceptional Items and their resulting tax and minority Interest impact

Mobile machine used in open pit mining for the digging of ore and waste from the mine and loading it onto vehicles for transportation.

Exceptional items are those items which are non-recurring or variable in nature and which do not impact the underlying trading performance of the Group. Exceptional items in 2007 relate solely to the IPO.

A fracture or a fracture zone along which there has been displacement of one side relative to the other. The displacement may be a few inches or many miles.

Group of alloys having iron (Fe) as one of the defining elements. These alloys form the feed material for various finishing processes eg steel making. The Group, in particular, produces high, medium and low carbon ferrochrome, ferrosilicochrome and ferrosilicomanganese.

An alloy of iron and chromium primarily used as an input to stainless steel making. Comprising charge chrome, high carbon, medium carbon and low carbon ferrochrome.

An alloy with iron, chrome and silicon as the main elements.

An alloy with iron, manganese and silicon as the main elements.

An alloy with iron and silicon as the main elements.

A halide mineral composed of calcium fluoride, CaF2. Used for making steel and aluminium amongst other purposes.

A vessel in which ore is reduced to molten metal under the action of applied heat. Similarly, crude metal is treated in a furnace by adding alloys to produce refined metals.

Generally Accepted Accounting Practices

Gross Domestic Product

ENRC and each of its subsidiaries.

A term used to describe an area of undeveloped land, either currently used for agriculture or just left to nature.

Quantity of metal in a specified quantity of rock, concentrate, alloy or other material, usually expressed as a percentage of the primary element.

Common iron oxide mineral, Fe2O3.

Impurities in the product or chemical process.

Initial Public Offering

International Financial Reporting Standards

International Accounting Standards

Joint Stock Company

The 2004 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves as published by the joint Ore Reserves Committee of the Australian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia.

Kazakhstan Aluminium Smelter

Kazakhstan Stock Exchange

Krasno Oktyabrskoye bauxite mine

Kazakhstan tenge

London Metal Exchange

London Stock Exchange

Long Term Incentive Plan

Sedimentary rock comprised mostly of calcium carbonate (calcite).

Lost time injury frequency rate defined as the number of lost time injuries per million hours worked.

A mineral of iron, Fe3O4, a common ore forming mineral with characteristic magnetic properties.

Mineral Extraction Tax

The science that deals with procedures used in extracting metals from their ores, purifying and alloying metals.

Commonly used to describe a plant where ore is ground and undergoes physical or chemical treatment to extract and produce a concentrate of the valuable minerals

A concentration or occurrence of material of intrinsic economic interest in or on the Earth’s crust in such form, quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade, geological characteristics and continuity of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral resources are sub-divided, in order of increasing geological confidence, into Inferred, Indication and Measured categories.

The process by which minerals are introduced into a rock. More generally, a term applied to accumulations of economic or related minerals in quantities ranging from weakly anomalous to economically recoverable.

The Magnitogorsk Iron and Steel Works Open Joint Stock Company

Not applicable

Open pit

Open Joint Stock Company

Method of mining in which the ore is extracted from an excavation open to the sky.

The naturally occurring material from which a mineral or minerals of economic value can be extracted profitably or to satisfy social or political objectives. The term is generally but not always used to refer to metalliferous material, and is often modified by the names of the valuable constituent, eg iron ore.

The economically mineable part of a Measured and/or Indicated mineral resource. It includes, diluting materials and allowances for losses, which may occur when the material is mined. Appropriate assessments and studies and have been carried out, and include consideration of and modification by realistically assumed mining metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction could reasonably be justified. Ore reserves are sub-divided in order of increasing confidence into Probable Ore Reserves and proved ore reserves.

In an open pit mine, the unwanted material that must be stripped away to reveal the ore beneath.

Ore that was originally deposited as a sulphide but due to the action of the elements (air, water etc) over a long period of time has become oxidised (weathered).

Profit before tax

The process of agglomerating fine product and moulding it into the shape of a pellet (a ball of 8 to 16mm in diameter), which is more favourable in size and strength for more efficient down stream processing than the original fines.

Commonly used as general term for fixed or moveable equipment required in the process of winning of raw material and down stream processing, including crushers, mills, smelters.

The economically mineable part of an Indicated, and in some circumstances, a Measured mineral resource. It includes diluting materials and allowances for losses which may occur when the material is mined.

Appropriate assessments and studies have been carried out, and include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction could reasonably be justified. A Probable Ore Reserve has a lower level of confidence than a proved ore reserve but is of sufficient quality to serve as the basis for a decision on the development of the deposit.

The total operating costs, as presented in the income statement, over the volume of product sold. The product cost per tonne measures the performance of ENRC in maintaining its low cost base.

The economically mineable part of a Measured mineral resource. It includes diluting materials and allowances for losses which may occur when the material is mined. Appropriate assessments and studies have been carried out, and include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction could reasonably be justified. A proved ore reserve represents the highest confidence category of reserve estimate. The style of mineralisation or other factors could mean that Proved Ore Reserves are not achievable in some deposits.

An electrolytic or chemical facility producing pure metals or metal compounds.

Profit before interest and taxation and exceptional items over average capital employed (borrowings and total equity, including minority interests) less IPO proceeds.

Russian roubles

Products that have been upgraded into a form that may be sold to customers.

Particulate matter that can be transported by fluid flow, glaciers or wind and which eventually is deposited as a layer of solid particles.

A term used to describe recyclable materials left over from any manner of product consumption, such as parts of vehicles, building supplies, and surplus materials.

A ferroalloy composed principally of manganese, silicone and iron, used in steel production.

A thermal process whereby molten metals (or amalgamated metals) are liberated from beneficiated ore or concentrate with impurities speared as lighter slag.

A generally intermediate accumulation of ore, other mineral product or coal, prior to individual processing steps. Any heap of material formed for loading or other purposes.

A geological term which describes a horizontal line on the surface of a dipping stratum. The strike is 90° to the dip of the stratum.

The current price of a metal for immediate delivery.

An alloy that exhibits excellent mechanical strength, good surface stability, corrosion and oxidation resistance.

A sulphur bearing ore containing appreciable levels of metals that ideally can be extracted and recovered profitably through various process techniques.

Sokolovsko Sarbaiskoye Ore Mining and Processing Association

SRK Consulting (UK) Limited

A rotating machine for producing electricity, driven by steam or gas.

Torgay bauxite mine

Overall return on an ordinary share, after all adjustments for capital actions and reinvestments of dividends or other income over the relevant period, expressed as percentage of the average price of an ordinary share at the beginning of the relevant period. (Dividends includes regular dividend payments, but also may include cash payments to shareholders or special/one-time dividends or share buybacks.)

United Company Rusal

United Kingdom

United States of America

Underground mine

Profit before finance income, finance costs, income tax expense, depreciation, amortisation and impairment, net gains and losses of derivatives not qualifying for hedge accounting, share of profit or loss of joint venture and associates and the impact of the devaluation of the Kazakhstani tenge.

Rock lacking sufficient metal grade and/or other characteristics to be a source of economic revenue.

An epigenetic mineral filling of a fault or other fracture in a host rock, in tabular or sheet like form, often with associated replacement of the host rock, a mineral deposit of this form and origin.

cubic metres

megawatt hour

million metric tonnes

Kazakhstani tenge

kilowatt hour

thousand metric tonnes

kilogramme

thousand calories per thousand grammes

gigawatt hour

degree

per cent