RUSAL, Papua New Guinea sign energy, aluminum memorandum

MOSCOW. Jan 19 - RUSAL has signed a memorandum of understanding with Papua New Guinea to jointly explore the potential for energy and aluminum developments in Papua New Guinea (PNG), based on PNG's natural gas resources, the Russian aluminum giant said in a press release.

In accordance with the memorandum, signed in PNG by 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 utilization of PNG's gas resources for potential RUSAL operations in the region, the release said.

This move is part of RUSAL's strategy to transform into an energy and metals corporation embracing both aluminum smelting and energy generation, the release said.

Following this strategy, the company has been actively pursuing opportunities to produce globally competitive electric power required for the operation of aluminum smelters, the release said.

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 release said. The country thus seems to have great potential as a possible base for an energy-intensive mineral processing industry, such as aluminum smelting, the release said.

The signatories to the memorandum agreed to the possible creation of a joint working group to evaluate and take forward specific proposals submitted by RUSAL, the release said.