Russia's RUSAL calls for state metals reserve
MOSCOW, Dec 2 (Reuters) - Russia's United Company RUSAL, the world's top aluminium producer, called on the government to create a metals reserve to support the industry through the financial crisis, a presentation obtained by Reuters showed.
The document, presented at parliamentary hearings at the Duma lower chamber this week, said that such a move would "restore fair pricing", cut the risks of a metals glut and allow the state to reduce its exposure to equity investment risks.
RUSAL did not specify the volume of metals purchases it wanted the government to make.
It said that rising metals prices would provide the government with $2.4 billion in additional budget revenues in 2009-2012 if it created the reserve.
The company also asked the government to consider a range of other benefits to industrial producers including reduced tariffs for natural monopolies, long-term investment in the electricity sector and support for industrial projects worth at least $1 billion which also employed at least 3,000 workers.
RUSAL is Russia's dominant aluminium producer, with a range of smelters in locations such as Bratsk, Krasnoyarsk, Volgograd and Irkutsk.
It is also involved in billions of dollars worth of new projects including the construction of a smelter in Taishet, Russia and a new bauxite and alumina complex in Russia's Komi Republic. (Reporting by Alfred Kueppers)
