Under a memorandum of understanding signed by the Russian firm and its Libyan partner, RusAl will hold 60% and ESDF 40% in the joint undertaking.
"The memorandum stipulates feasibility studies to comprehensively assess the complex's technical, economic and financial aspects. If the results are positive, the sides intend to sign a final deal on the joint venture in 2009 and start building a gas-fired electric power plant and an aluminum plant in 2010," a joint statement said.
The aluminum plant would produce up to 600,000 metric tons annually while the power plant would have an annual capacity of 1,500 Mw, the statement said.
"The memorandum that has been signed is yet another important step in implementing our strategy of increasing global presence and strengthening the company's competitiveness through the establishment of energy and metals complexes in strategically important regions," RusAl General Director Alexander Bulygin said.
He said the plant would be the first aluminum producer in Libya and would help develop the Libyan economy.
