Jan 22 2007
RUSAL, a top three global aluminium producer, announces the signing of a memorandum of understanding with The Independent State Of Papua New Guinea, represented by the Ministry of Petroleum & Energy, to jointly explore the potential for energy and aluminium developments in Papua New Guinea (PNG), based on PNG's natural gas resources.
In accordance with the memorandum of understanding (MOU), signed in PNG by the Hon. William Duma, Acting Minister for Petroleum and Energy, and for RUSAL by John Hannagan, Chairman, RUSAL Australia, the parties will establish the framework for an ongoing discussion on possible utilisation of PNG's gas resources for potential RUSAL operations in the region.
This move is part of RUSAL's strategy to transform into an energy and metals corporation embracing both aluminium smelting and energy generation. Following this strategy, the company has been actively pursuing opportunities to produce globally competitive electric power required for the operation of aluminium smelters. Possessing large gas resources, Papua New Guinea is currently implementing a policy trying to encourage the development of a whole natural gas industry value chain, from exploration to value-added activities. The country thus seems to have great potential as a possible base for an energy-intensive mineral processing industry, such as aluminium smelting.
The signatories to the MOU have agreed to a possible set-up of a joint working group to evaluate and take forward specific proposals submitted by RUSAL.
In June of last year, a similar power projects working group was established with the Government of Australia's Queensland, where RUSAL currently has alumina operations.