Russian major Rusal, a top three global aluminium producer, announced Friday that it had signed a memorandum of understanding with The Independent State Of Papua New Guinea, represented by the Ministry of Petroleum & Energy, to jointly explore the potential for energy and aluminium developments in PNG, based on the country's natural gas resources.

In accordance with the MOU the parties will establish the framework for an ongoing discussion on possible utilization of PNG's gas resources for potential Rusal operations in the region, the group said in a statement.

"This move is part of Rusal's strategy to transform into an energy and metals corporation embracing both aluminium smelting and energy generation. Following this strategy, the company has been actively pursuing opportunities to produce globally competitive electric power required for the operation of aluminium smelters," Rusal said.

The signatories to the MOU have agreed to a possible set-up of a joint working group to evaluate and take forward specific proposals submitted by Rusal.