RUSAL to back global initiative to stabilize aluminum industry -Deripaska

MOSCOW. Feb 22 (Interfax) - United Company RUSAL (UC RUSAL), theworld's largest aluminum producer, will support the initiative ofseveral governments to stabilize the aluminum industry, RUSAL GeneralDirector Oleg Deripaska told an interview with the Vesti TV channel andInterfax. "In fact no one in the world can produce aluminum for $1,000,because the sum of basic material costs, including energy andtransportation, exceeds $1,600. Some 90% of aluminum producers will postlosses. That is why we will support initiatives, discussed in Geneva bythe governments of some aluminum producing countries, which will lead toa better understanding of companies' real production programs andgovernmental measures to help producers and consumers," Deripaska said. Global production capacity and reserves top 40 million tonnes,while the industrial demand is less than 27 million, he said. RUSAL earlier announced an 11% reduction in aluminum and a 30%reduction in alumina production. "Two large actors will remain on the market in addition to Russia -China and the Middle East," Deripaska said. RUSAL's plants in Europe, inparticular Eurallumina in Italy and Aughinish in Ireland, will eitherdrastically cut or even temporary stop production. "This isspin-capacity for us," the RUSAL general director said. "There is a positive side of the crisis: outdated and inefficientpants, which simply were redundant, will leave the market," he said.