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Rusal seeks Chinese partners to exploit alumina in Siberia
Edited by : AL CIRCLE
2 min read
United Company Rusal Plc, the world’s biggest aluminum producer, is seeking Chinese partners to set up joint venture factories in Russia’s Siberia region, the Beijing-based Jinghua Times reported Monday.
The Russian company, which accounting 9 percent of global alumina and aluminum output, just signed a Memorandum of Understanding with the China Nonferrous Metals Industry Association on Saturday.
A senior official from the aluminum giant indicated that a special work team has already been set up to attract Chinese investment into resource-rich Siberia, according to the report.
Siberia has one of the world's biggest bauxite mines while the price of electricity, which is essential to turn bauxite into alumina, is cheap, according to the China Daily.
Producing a ton of alumina would cost roughly $1,600 in Siberia, compared with $2,250 in China's Henan province.
Analysts said the industry has been affected by high electricity prices. "Electricity costs account for nearly 45 percent of the total production costs of aluminum," said Wang Lixin, a researcher at umetal.com, a nonferrous metals industry website in Beijing.
About 80 to 90 percent of aluminum producers in China are losing money because of falling prices, the Global Times reported, citing Jia Mingxing, vice chairman of the China Nonferrous Metals Industry Association (CNIA).
The Russian company, which accounting 9 percent of global alumina and aluminum output, just signed a Memorandum of Understanding with the China Nonferrous Metals Industry Association on Saturday.
A senior official from the aluminum giant indicated that a special work team has already been set up to attract Chinese investment into resource-rich Siberia, according to the report.
Siberia has one of the world's biggest bauxite mines while the price of electricity, which is essential to turn bauxite into alumina, is cheap, according to the China Daily.
Producing a ton of alumina would cost roughly $1,600 in Siberia, compared with $2,250 in China's Henan province.
Analysts said the industry has been affected by high electricity prices. "Electricity costs account for nearly 45 percent of the total production costs of aluminum," said Wang Lixin, a researcher at umetal.com, a nonferrous metals industry website in Beijing.
About 80 to 90 percent of aluminum producers in China are losing money because of falling prices, the Global Times reported, citing Jia Mingxing, vice chairman of the China Nonferrous Metals Industry Association (CNIA).
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