Chalco In Deadlock With Saudi Partner On Aluminum Proj-Report

SHANGHAI, Jun 25, 2008 (Dow Jones Commodities News Select via Comtex) -- ACH | Quote | Chart | News | PowerRating -- Aluminum Corp. of China Ltd. (ACH), or Chalco, has reached a deadlock in its latest talks with Saudi Arabia on a $4.5 billion aluminum smelter project, the 21st Century Business Herald reported Thursday, citing an unnamed company official.

The Chalco official said negotiation representatives had failed to achieve expected progress in determining project details, and the company will work with the Saudi Arabian government to sort out a plan.

Chalco, Malaysia's MMC Corp. (2194.KU) and Saudi Arabia's Saudi Binladin Group have signed a framework agreement to build an aluminum smelter with an annual production capacity of 1 million metric tons and a power plant with a capacity of 1,860 megawatts in Saudi Arabia's Jazan Economic City.

Chalco planned to use its own alumina produced in China, and the plant's aluminum output is expected to be exported back to China, said the official.

Chalco wasn't immediately available for comment.

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