Jul 29 2006
SUAL Group and Corporaciуn Venezolana de Guayana (CVG) signed a Letter of Intent calling for the preparation of a feasibility study on the development of an integrated aluminium complex (from extracting raw materials to manufacturing finished goods) in the Bolivarian Republic of Venezuela.
The Letter of Intent was signed within the framework of a visit to the Russian Federation of the Venezuelan delegation led by the Republic’s President Hugo Chavez. The document was signed by SUAL Holding Senior Vice President A. Volynets and Deputy Minister for investment promotion of the Venezuelan Ministry of Basic Industries and Mining V. Vasquez.
The Letter calls for a range of areas to be covered in the feasibility study including geological exploration, extraction, transportation and processing of bauxite, alumina refining, primary aluminium production and the manufacture of high value-added aluminium products.
The parties will share the expenses incurred in the process of carrying out the works defined in the Letter.
SUAL Group and CVG will also establish a joint technical commission, which will include two representatives from each side.
The signing of the Letter of Intent does not imply the establishment of a joint venture at the initial stage of cooperation. If the evaluation based on the results of the feasibility study for the integrated aluminium complex proves to be favourable, the parties plan to sign a related agreement on project implementation and initiate appropriate legal and administrative procedures.