RusAl estimates cost of new project in Russia Far East at $10 bln

United Company RusAl, the world's newest aluminium champion since the merger between RusAl, SUAl and Glencore, estimates the cost of a new project in Russia's Far East at $10 billion, a company official said Tuesday.

UC RusAl and the Russian Federal Agency for Nuclear Power (Rosatom) Monday signed a memorandum on building a nuclear power plant and an aluminium production plant in Russia's Far East.

"The estimated cost of the project is $10 billion," Vadim Geraskin said in an interview with Russia's English-speaking TV channel Russia Today.

The official said the new project envisions the construction of four power-generating units and an aluminium production facility with an annual production capacity of 600,000 tons of the highly sought-after lightweight metal.

Geraskin said the company plans to export aluminium to China, Japan and other Asian countries, and also to the United States. In addition, RusAl is considering the possibility of supplying South Korea and China with energy resources.

A task team established by Rosatom and RusAl in August 2006 intends to draft by the end of 2007 a feasibility study of the Far Eastern project to define the parameters of the NPP and the aluminium plant. After the feasibility study has been approved, the parties will determine a detailed schedule for its implementation.

The United Company Russian Aluminium (UC RusAl) was formed in March 2007 following the merger of Russia's aluminium giants RusAl and SUAL and the alumina assets of Swiss-based Glencore.

The company employs 100,000 people in 17 countries on five continents. It exports products to 70 countries and accounts for about 12.5% of global aluminium and 16% of global alumina production.

UC RusAl plans to double its energy assets to $30 billion in the next 15 years, the company's CEO said in March.