Russian firm and a local partner to build aluminium smelter

Russian smelting company UC Rusia Alumninium Company (Rusal) will team up with a local partner in building an aluminium smelter in Indonesia as quoted by Kontan.

Industry Minister MS Hidayat said that the Russian company would invest about US$1.5 billion to build the smelting plant which would process bauxite ore into alumina.

?The Russian firm will establish a joint venture with a local firm for the project,? the minister said without disclosing the name of local firm which would cooperate with Rusal.

Rusal, the world?s largest aluminum producer, and state owned mining company PT Aneka Tambang (Antam) agreed in 2007 to jointly build an aluminium plant in Indonesia, but the cooperation agreement was terminated in 2009 because the Russian company pulled out from the project.

?It is likely that the Russian company would choose a different company now as its partner in the new project,? Hidayat said, adding that the Russian company pledged to start its smelting project in the country next year.(*)