Alumina Limited

A-IFRS means, Australian equivalents to International Financial Reporting Standards. Statutory accounts must be prepared in accordance with A-IFRS for reporting periods commencing 1 January 2005.

Alumina Limited means Alumina Limited (ABN 85 004 820 419)

American Depositary Receipt (ADR) Is a negotiable share certificate issued by a major US Bank that represents ownership of shares in a non-US company. In the case of Alumina’s ADRs, each ADR represents 4 ordinary Alumina shares.

AofA means Alcoa of Australia Limited (ABN 93 004 879 298)

ABS (Alcoa Business System) The Alcoa Business System is an integrated set of systems, tools and language organized to encourage unencumbered transfer of knowledge across businesses and borders. It focuses on serving customer demand by emphasizing the elimination of all waste and making what the customer wants, when the customer wants it.

Alcoa means Alcoa Inc of 201 Isabella Street, 7th Street Bridge, Pittsburgh, Pennsylvania, US, a company incorporated in the Commonwealth of Pennsylvania.

Alloy means a substance with metallic properties, composed of two or more chemical elements of which at least one is a metal. More specifically, aluminium plus one or more other elements, produced to have certain specific, desirable characteristics.

Alumina means Aluminium oxide produced from bauxite by an intricate chemical process. It is a white powdery material that looks like granulated sugar. Alumina is an intermediate step in the production of aluminum from bauxite and is also a valuable chemical on its own.

AWAC means the unincorporated joint venture between Alumina Limited and Alcoa known as Alcoa World Alumina and Chemicals.

ASX means the Australian Stock Exchange

Bauxite means an ore from which alumina is extracted and from which aluminium is eventually smelted, Bauxite usually contains at least 45% alumina. About four kilograms of bauxite are required to produce one kilogram of aluminium.

Brownfield expansion is developing existing operations.

Chalco means Aluminium Corporation of China Limited

Compagnie Guinée means Compagnie des Bauxites de Guinée.

Commodity cost curves plot global production against cost of production less intermediate and co-product revenue. Cumulative production is expressed as a percentage, usually divided into quartiles. The lower a producer is placed on the cumulative production curve, the higher its margins at a given price.

Demerger means the separation in 2002 of WMC’s AWAC interest from its non-AWAC businesses resulting in two independent entities separately listed on the stock market conducted by the ASX.

Embedded Derivative An embedded derivative (within a contract) may exist when some or all of the cash flows that would otherwise arise from the contract are dependant on movements in specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices, credit rating or credit index, or other variable. AWAC has a number of long-term contracts for the purchase of energy that have with their pricing formulae mechanisms to vary the price depending on the LME aluminium price at the time.

Greenfield exploration is developing a new operation.

Halco means Halco (Mining) Inc.

Inespal means Industria Española del Aluminio.

Ingot means a cast form suitable for remelting or fabricating. An ingot may take many forms: some may be 30 feet long and weigh 15 tons; others are notched or specially shaped for stacking and handling.

Jamalco means the joint venture between Alcoa Minerals of Jamaica LLC and Clarendon.

LME or London Metal Exchange means the international trading body that facilitates the worldwide open market buying and selling of metals.

Metric Ton Unit of mass and weight equal to 1,000 kilograms or 2,204.6 pounds

MRN means Mineração Rio do Norte SA.

MTPY means Metric Tons Per Year.

NYSE means the New York Stock Exchange

Ore is a mineralisation that can be profitably mined and treated.

Pot In aluminium production: the electrolytic reduction cell, commonly called a "pot;' in which alumina dissolved in molten cryolite is reduced to metallic aluminium. A series of cells connected electrically is called a potline.

SEC means the US Securities and Exchange Commission

Smelt To fuse or melt ore in order to extract or refine the metal it contains.

Suralco means Suriname Aluminum Company LLC

WMC means WMC Limited (ABN 85 004 820 419) as constituted prior to implementation of the Demerger on the Demerger Date and, as the context may require, any or all of its controlled entities.