UC RUSAL signs memo with Libya to build metals complex

Russian aluminum producer United Company RUSAL has signed a memorandum of understanding with the Libyan State Economic and Social Development Fund to create a joint venture to develop an energy and metals complex in Libya, according to a joint statement released Monday.

The complex is expected to include an aluminum plant with an annual capacity of 600,000 tonnes and a 1,500-megawatt natural gas power plant.

The parties have agreed that RUSAL would own 60% in the joint venture, while Libya would own the remaining 40%.

Natural gas for the complex will be supplied by the National Oil Company of Libya under an agreement for at least 30 years.

The memo includes a pre-feasibility study of the technical, economic and financial parameters of the proposed complex. If the results of the study are positive, the parties plan to sign a final agreement to establish the joint venture in 2009 and start construction of the gas power station and the aluminum smelter in 2010.The aluminum produced by the complex in Libya will serve both the domestic demand as well as European clients.

RUSAL accounts for about 12% of the world’s aluminum market. In 2007, it produced 4.2 million tonnes of aluminum.