RUSAL and ROSATOM Look to Establish Joint Nuclear Power and Aluminium Smelter in Far East

Federal Nuclear Power Agency (ROSATOM) and United Company RUSAL, the word's largest aluminium and alumina producer, have signed a memorandum on the joint implementation of long-term investment projects. The signed document provides for the detailed exploration of opportunities to establish an energy and metals complex in the Far East comprising a nuclear power plant and an aluminium smelter.

The agreement is a logical development of the cooperation that was started in August 2006. In particular, the companies will coordinate activities to implement projects on the construction of a nuclear power station as well as production of nuclear equipment and the attraction of foreign suppliers of technologies and equipment.

Within the framework of a Project Office established in August 2006, ROSATOM and United Company RUSAL plan to carry out a feasibility study of the project in the Far East by the end of 2007. After the approval of the feasibility study specifying parameters of the nuclear power plant and aluminium smelter, the parties will set up a detailed schedule for implementation of the project.

Commenting on the agreement, Alexander Bulygin, CEO, United Company RUSAL, said: «We consider the cooperation with ROSATOM to be one of the key areas of our growth as an energy and metals corporation. Our participation in the development of the Russian nuclear power industry will not only foster the implementation of Russia's energy security strategy but will also enable us to expand and diversify the company's energy base through using state-of-the-art international technologies.»

Sergey Kirienko, Head of ROSATOM, said: «ROSATOM has an ambitious programme of nuclear power development that includes modernisation of the operating facilities as well as the construction of new nuclear power plants. The programme will provide a platform for an economic upturn across large areas of the country. The form of partnership developed by us for such large-scale projects makes it possible for us to accomplish our tasks most effectively and in the shortest time.»

The parties believe that the project should be carried out in the form of public private partnership to make it possible to raise funds for the project from the Russian Investment Fund or other centralised sources and invest them into the construction of transmission lines, transport infrastructure, etc.

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