RUSAL to explore energy, aluminium projects in PNG

MOSCOW, Jan 19 (Reuters) Russia's RUSAL, which produces about 10 percent of the world's aluminium, will explore natural gas resources in Papua New Guinea as a potential source of power for aluminium projects in the region.

RUSAL, controlled by billionaire Oleg Deripaska, said on Friday it had signed a memorandum with PNG's Ministry of Petroleum and Energy to jointly explore the potential for energy and aluminium developments based on PNG's natural gas resources.

''The country ... seems to have great potential as a possible base for an energy-intensive mineral processing industry, such as aluminium smelting,'' RUSAL said in a statement.

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

RUSAL said both sides had agreed to the possible creation of a joint working group to evaluate and develop specific proposals submitted by RUSAL. A similar group is in place in Australia's Queensland state, where RUSAL has alumina operations.

RUSAL plans to create the world's largest aluminium producer by merging with smaller domestic rival SUAL and assets belonging to Swiss trader Glencore. The merged company would list on the London Stock Exchange within 18 months, RUSAL has said.

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