RUSAL, NORINCO still in price talks on aluminium deal

HONG KONG Nov 2 (Reuters) - China North Industries Corporation (NORINCO) and Russia's UC RUSAL are still in talks on prices for a 1.68 million tonne aluminium supply deal, a source at the Chinese firm said on Monday.

RUSAL, the world's biggest aluminium producer, said on Monday it had signed a deal to supply 1.68 million tonnes of the metal to NORINCO from 2010-16. [ID:nL259328].

"We have signed the contract confirming the quantity. We are still talking on details and prices," said the source, who is familiar with the deal. "The payment may involve trade finance."

He added the trade finance could include a lump sum payment for the whole 1.68 million tonnes of primary aluminium in advance.

The deal had been suggested by the Russian government during Russian Prime Minister Vladimir's visit to Beijing last month.

"The deal is not only a supply contract but also a government-government one," he said.

Under the quantity contract, RUSAL is required to ship about 20,000 tonnes of primary aluminium to NORINCO for delivery to Shanghai.

NORINCO, a military-backed company, will sell the metal into spot market, the source added. (Reporting by Polly Yam; Editing by Jonathan Hopfner)