The Moscow Times reported that United Company RusAl is prepared to cut 500,000 tonnes of output at existing plants to enable construction to resume at two smelters in Siberia.

Ms Vera Kurochkina RusAl spokeswoman said building 300,000 tons of capacity at the two plants is the only way to secure demand for the 3,000 megawatt Boguchansk hydropower plant, which would otherwise have too few customers when it comes on line next year.

RusAl also proposed that state owned utility RusHydro provide USD 150 million of funding for the Boguchansk smelter and secure RUB 20 billion for the first line of the power plant. The proposals have been sent to the government.

RusAl agreed last month to halt the Boguchansk smelter. It is seeking to borrow USD 150 million for Boguchansk and USD 300 million for Taishet, the other Siberian smelter.

Mr Yevgeny Druzyaka the firm's head of communications said the power plant will be the biggest built in Russia since the end of the Soviet Union. The complex was originally estimated to cost USD 3.6 billion, excluding government spending on infrastructure. RusHydro is in talks with partners on the project and is reviewing its options.

(Sourced The Moscow Times)