OREANDA-NEWS. September 12, 2011. UC RUSAL (SEHK: 486, EuroNext: RUSAL/RUAL, MICEX: RUALR, RTS: RUAL), the world’s largest aluminium producer, and the Irkutsk Region Government today signed a cooperation agreement to build a housing settlement for Taishet Aluminium Smelter staff and their families providing housing for 7,000 people.

The project includes the construction of housing, social and engineering facilities in the Taishet municipal district.  Both parties will also implement mortgage programs in order to facilitate the relocation of employees.

According to the agreement, the Irkutsk Region Government will facilitate the provision of financial support, will free land parcels required for the project and make provisions in the budget estimates for housing improvements. In addition, the regional government plans to participate in the building of infrastructure facilities.

Commenting on the agreement, Oleg Deripaska, UC RUSAL's CEO, said: ”The building of the housing settlement is an important part of the Taishet aluminium smelter project and will create over 3,000 jobs in the region. This agreement is in line with RUSAL’s long-term strategy to provide all staff with housing and is currently being  carried out in seven regions where the Company operates. Over the next 12 months we aim to widen the number of regions participating, which in turn will result in an increased number of new occupants. The development of housing infrastructure and high living conditions remains an integral part of Company's social policy".

RUSAL is currently building a 750,000 tpa capacity Taishet aluminium smelter, which during the construction and operation phases will increase tax profits for both the regional and federal budgets. The project is currently financed directly from the RUSAL's own cash flow with the project financing to be secured. The total CAPEX in the 375,000 tpa capacity first stage of the project will amount to USD 1.77 billion, from which USD 600 million have already been invested by the Company. The success of the project requires the construction of external infrastructure including housing and social facilities such as schools, kindergartens, medical centers, which will be developed through public private partnerships.

Dmitry Mezentsev, Irkutsk Region Governor said: ”Joint efforts from the business, government and civil community ensures sustainable development of the region. This project is an example of successful public private partnership and will attract additional investments to the region. I am sure that realization of such initiatives is the way to future leadership and prosperity of our country”.