GDS (S) RUSAL : UC RUSAL and CHALCO to deepen cooperation in aluminium business

United Company RUSAL and Aluminium Corporation of China (Chalco) announce signing of a Memorandum of Understanding ("MOU") detailing the intent to cooperate in areas such as R&D of new technologies in the aluminium industry, development of bauxite resources and investments in integrated hydro powered aluminium production. The MOU was signed by the two major aluminium players on 22 March in Moscow, in the presence of Chinese President Xi Jinping and Russian President Vladimir Putin during President Xi's state visit to Russia.

'Actual aluminium market developments highlight the pressure the whole sector is under. This partnership between the two major global players in the aluminium sector is a significant step to address the current situation with the overproduction in the aluminium market. Through close cooperation the companies will look for new technological responses and replace outdated high cost production facilities with new advanced energy-efficient production capacity in Eastern Siberia, so as to promote sustainable development of the aluminium industry,' said Oleg Deripaska, CEO of RUSAL.

Xiong Weiping, President of Chinalco and Chairman of Chalco said: 'Chalco and RUSAL are both responsible and influential major companies. The signing of the MOU is of great significance in the context of the severe challenges faced by the global aluminium industry. Chalco has a strong edge in R&D, engineering and design, construction, operation management, and in other areas. RUSAL's clear advantages in aluminium industry technologies and hydro power resources are evident. Both parties will work closely together on various levels in the aluminium sector by complementing each other's advantages, thereby contributing to the sound development of the global aluminium industry.'

The partnership is in line with the strategic goal of the two countries to increase trading volumes. With the staunch support from both governments, the two companies will use both countries' competitive advantages to reduce energy costs, further expand their markets, and seek out better investment opportunities and develop quality projects in the global mining industry.