Rusal Gets Finance To Start Boguchansky Smelter Construction

LONDON, July 29 -- Russian aluminum giant United Co. Rusal PLC (0486.HK) and its partner in the Boguchansky aluminum smelter have secured finance to resume construction of the project, slated for initial launch in 2013, the company said Thursday.

Financing for the $1.7 billion project, which will eventually produce 600,000 metric tons a year, was approved by the supervisory board of Vnesheconombank. More than half the money will be loaned to complete the hydropower plant over a 16-year period, with the remainder lent over a 14-year period to complete the smelter and associated infrastructure, Rusal said.

The first stage of the smelter start-up is slated for 2013 at a rate of 147,000 tons a year. Currently the smelter is 30% complete.

Rusal's partner n the project is Russia's Rushydro (HYDR.RS).