Feb 7 2008
UC RUSAL, the world’s largest aluminium and alumina producer, is pleased to announce that it has signed a Memorandum of Understanding (MoU) with China Power Investment Corporation (CPI) for a strategic partnership to create a vertically integrated aluminium production complex. The complex will consist of a bauxite-alumina complex in Guinea and an energy and metal complex in China.
The memorandum states that UC RUSAL will become CPI’s partner in the construction of an aluminium smelter with a minimum capacity of 500,000 tonnes per annum. The smelter will be located in Qinghai Province, China, with its energy supply sourced from CPI's hydropower facilities on the Huang He River. At the same time, CPI will become UC RUSAL’s partner in the construction of a bauxite-alumina complex in Guinea, which will have a capacity up to 2.8 million tonnes of alumina per annum.
The partnership between these two projects will result in the creation of a vertically integrated aluminium production complex. UC RUSAL will hold a stake of up to 49% in the aluminium smelter in China, and CPI will hold up to 49% of the bauxite-alumina complex in Guinea. The parties will finance the projects in proportion to their ownership and will create a working group to conduct an audit and feasibility study that is planned to be completed by the middle of 2008. The joint project may commence in 2009.
Commenting on the MoU, Alexander Bulygin, CEO, UC RUSAL, said, “Joining forces with one of China’s largest energy corporations is an important move in realising UC RUSAL’s strategy of strengthening the company’s presence in China, reinforcing our raw materials base and implementing major international integrated projects. China, the world’s largest aluminium consumer and producer, is one of the most promising regions for the company’s business development. This project with a Chinese partner provides us with an opportunity to take an active part in the development and transformation of the aluminium industry in this country.”