Resal Ltd

MIGA issued $1.2 million in coverage to Remetal, S.A. of Spain for its equity investment in the construction and operation of a secondary aluminum alloy processing plant in Samara, in southwest Russia. MIGA's guarantee covers the risks of transfer restriction, expropriation, and war and civil disturbance.

The project enterprise, Resal, is a joint venture with two private Russian companies, Aluminz and Samara Metallurgical Company (Sameko). Remetal's patented technology will be utilized to extract aluminum metal from dross generated by local primary producers, which otherwise would have been wasted. The metal will be used to produce ingots for the local and export markets. Domestic suppliers will benefit from local procurement of 85 percent of the goods and services for the plant. The project will create more than 40 jobs for Russian nationals, who will be trained locally and in Spain. In addition, the project will generate about $1.2 million in annual tax revenues and $3.2 million in net annual foreign exchange for the country.