United Company Rusal, Russia's biggest aluminum producer, is seeking Chinese partners to set up joint venture factories in Russia's Siberia region, the Jinghua Times newspaper reported on Monday.

The report comes as Hong Kong-traded RUSAL signed a Memorandum of Understanding on Saturday with the China Nonferrous Metals Industry Association.

A senior official told the newspaper that a special work team has already been set up to attract Chinese investment into resource-rich Siberia.

Siberia has one of the world's biggest bauxite mines while the price of electricity, which is essential to turn bauxite into alumina, is cheap.

Producing a ton of alumina costs around $1,600 in Siberia, compared with $2,250 in China's Henan province.