PORT MORESBY (Pacnews) — Russian Aluminum, or Rusal, the world’s biggest aluminum smelter, is keen to develop a 3.7 billion kina ($1.2 billion) hydro-power plant in Papua New Guinea harnessing the Purari River in Gulf province, PNG Sustainable Energy Ltd. chief executive Peter Martin said.
The project will involve the building of a 60m-high dam to produce 1,800 megawatts of power for Rusal’s aluminum smelting plant to rise near Port Moresby.
Martin said the Russian company has called on PNGSE to re-look at a survey of an earlier project in 1974.
“A lot has changed since and we are now looking at it again to update the costing. “We are also updating the mapping and the hydrology aspects like the water catchment,” Martin said.
If approved by the government, the project will kick off this year and to be completed by 2012. The project will abide with every PNG law to ensure that all impacts such environmental issues will not be breached, Martin said.
Last month, Rusal signed a deal that paved the way for the setting up of the smelter.
Acting Petroleum Minister William Duman signed the agreement with Rusal chairman John Hannagan at the PNG Gas project office at Pacific View building.
This is for the convenience shipping raw materials and equipment between Rusal’s aluminum refinery in Queensland and Port Moresby.
“Rusal is investigating the opportunities for the building of the smelter and a power station using PNG resources like its river system. It is important to Rusal that a large energy supply is made available over a 30-year period and that it is consistently available.”
Hannagan said the signing was the first step in exploring opportunities for investment in PNG.
“We look forward to work with the people of this nation. “It is our intention to determine if a global competitive aluminum smelting industry within PNG is possible. If the project goes ahead, it would represent a significant employment opportunities and skills training in a global industry.”