UC Rusal, Antam To Build Bauxite, Alumina Complex

Russian aluminum producer United Company Rusal has signed a memorandum of cooperation with Indonesia's state-owned Aneka Tambang to build a bauxite and alumina complex in Indonesia, the company said. The complex, which will be in Western Kalimantan, will have an initial annual production capacity of 3.6 million metric tons of bauxite and 1.2 million tons of alumina. Rusal will hold a 51% stake in the new joint venture, with Antam holding the remaining 49%. It's expected that construction of the plant will commence in 2009 and the first alumina output is scheduled for 2011. Rusal and Antam also plan to "study opportunities for the cooperation's expansion in electric power and aluminum production," Rusal said. Earlier, Indonesia's Minister of Energy and Mineral Resources Purnomo Yusgianto said that Rusal and Antam were looking at the possibility of building a smelting facility, including a power plant. He didn't say when the two companies will start the project.