UC RUSAL and An Vien group of Vietnam sign MOU to create new complex

UC RUSAL announces that it has signed a Memorandum of Understanding (MOU) with An Vien of Vietnam to create a vertically integrated bauxite and alumina complex. The project will include the construction of an alumina refinery with a capacity of approximately 1.5 mln tn of alumina per annum based on Binh Phuoc, one of the most promising bauxite deposits in South Vietnam.   

Vietnam has the world’s third largest explored reserves of bauxites exceeding 3 billion tonnes. The bauxite reserves of Binh Phuoc deposit are approximately 700 million tonnes. 

The parties are currently discussing the possible parameters of the joint venture. In 2009-2010, the companies are planning to conduct exploration and a preliminary feasibility study, upon the results of which the project’s parameters will be specified.  The construction of the bauxite and alumina complex is scheduled to begin in the first quarter of 2012.

This joint project is part of a wider programme to develop cooperation between Russia and Vietnam, which is overseen by the intergovernmental committee of the two countries.  The signing of the MOU took place in the presence of Dmitry Medvedev, the President of the Russian Federation, and the President of the Socialist Republic of Vietnam Nguyen Minh Triet, during his official visit to Russia.

Commenting on the MOU, Alexander Bulygin, CEO of UC RUSAL, said: “The Asian-Pacific region will play an important role in UC RUSAL’s business development.  This MOU on construction of a bauxite and alumina complex is part of our strategy to expand our raw materials base. Core to this strategy is the creation of technologically-advanced and modern production capacities and continuing to strengthen our position in regions with the fastest growing economies. The cooperation of UC RUSAL and An Vien is a solid example of international cooperation that facilitates both business development and national interest.”