United Company RUSAL and Aluminium Corp of China (Chalco) signed a Memorandum of Understanding (“MOU”) on March 22 detailing the intent to co-operate 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 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 Through close cooperation the companies will look for new technological responses and replace outdated high cost production facilities with new advanced energy-efficient production capacity in Eastern Siberia, so as to promote sustainable development of the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.
RUSAL is the world’s largest producer of aluminium, in 2012 accounting for approximately 9% of global production of aluminium and 8% of alumina. UC RUSAL employs about 72,000 people in 19 countries, across five continents. It markets and sells its products primarily in the European, Japanese, Korean, Chinese, South East Asian and North American markets.
Chalco was established in the People’s Republic of China on September 10, 2001 with Aluminium Corp of China (Chinalco) being its controlling shareholder. As a leader of China’s non-ferrous metals industry, Chalco has independently developed and applied many new technologies and processes like the Ore-dressing Bayer Process and 500 kA High-Amperage Electrolytic aluminium Cell. It has an outstanding management team and a pool of technical professionals (with expertise in full-ranging areas) who have developed many core technologies with independent intellectual property rights. Chalco is the only aluminium enterprise in China that integrates the exploration and mining of bauxite, coal and iron ore, the production and sales of alumina, primary aluminium and fabricated products, as well as related R&D. It is China’s largest producer of alumina, primary aluminium and fabricated products. It is also the world’s second largest alumina producer and the third largest primary aluminium provider.