The parties have agreed to create a joint venture with UC Rusal holding a 60% shareholding and the Libyan partner a 40% interest. The natural gas for the complex will be supplied by the National Oil Co. of Libya (NOC) under a 30-year contract. The MoU includes a pre-feasibility study of the technical, economic and financial parameters of the proposed complex. If the results of the study are positive, the parties plan to sign a final agreement to establish the joint venture in 2009 and start the construction of the gas power station and the aluminum smelter in 2010. The pre-feasibility study will help to determine the technology to be used for the project—RA-300 or RA-400 reduction cells (both developed by UC Rusal’s Engineering and Technology Centre).

“This Memorandum of Understanding marks another significant move forward in implementing the company’s strategy of strengthening our position in the global market and enhancing UC Rusal’s competitiveness through establishing energy and metals complexes in strategically important regions,” said Alexander Bulygin, CEO, UC Rusal. “This will be the first aluminum smelter in Libya and will make a significant contribution to implementing the country’s large-scale program of economic development. This project will help create a solid foundation for the country’s planned infrastructure projects and its exports will help to actively integrate Libya in the global economy.”

The aluminum produced by the complex in Libya will serve both the domestic demand as well as European clients.