The world’s third-largest primary aluminium producer has signed a memorandum of understanding with the PNG Ministry of Petroleum and Energy, which will see a joint venture establish a framework for an “ongoing discussion on possible utilisation of PNG’s gas resources for potential Rusal operations in the region”, according to the Russian company.

The partnership is part of Rusal’s objective of becoming an energy and metals corporation, which deals in aluminium smelting and energy generation.

“The company has been actively pursuing opportunities to produce globally competitive electric power required for the operation of aluminium smelters,” the company said.

“Possessing large gas resources, PNG is currently implementing a policy trying to encourage the development of a whole natural gas industry value chain, from exploration to value-add activities.

“The country thus seems to have great potential as a possible base for an energy-intensive mineral processing industry, such as aluminium smelting.”

A JV working group will be established to “evaluate and take forward” Rusal’s proposals.

A similar “power projects working group” was set up between the company and the Queensland Government in June last year.

Rusal is in the midst of a merger with OAO Sual and Glencore International AG’s alumina assets. Rusal has a global aluminium annual output of 10% and produces 75% of Russia’s aluminium.

Once the merger takes full affect in April, the new company, United Company Rusal, will be capable of smelting 4 million tonnes of aluminium per annum – more than current world leader Alcoa.