NEW YORK A private
Chinese company could establish aluminum smelters in Russia in
a joint venture with United Co. Rusal, the Moscow-based company
A memorandum between UC Rusal
and Chinas Shandong Xinfa Group could also lead to joint
work on alumina and bauxite, Rusal said.
The companies have three months
to set up a joint working group to study potential areas of
cooperation. They then have until June 30 to identify those
proposals with the best potential.
Investment would be sought from
Chinese lenders, and the legal detail of any future cooperation
is still subject to further discussion, Rusal said.
Volatility in the metal markets
and growing global demand for aluminum had caused output costs
and energy tags to rise, chief executive officer Oleg Deripaska
"China, as one of the
worlds aluminum industry drivers, has therefore been
forced to search for ways to transfer primary aluminum
production abroad," he said. "Siberian regions of Russia are an
obvious top pick, not only because of their top-line aluminum
smelting greenfields, but the entire industrial clusters."
Rusal made up some 9 percent of
world aluminum output last year.