China National Nonferrous Metals Corp and Lanzhou Aluminium Co planned to hold a total 51 per cent stake in the venture. Lanzhou Aluminium is one of the 10 largest aluminium plants in China. Kaiser is collaborating with another US company, Hwangs International, to invest in the Yellow River Aluminium Company. It is understood that a final contract was delayed because Kaiser was worried about the electricity supply amid the power shortage in Gansu this year. A provincial official said: 'Kaiser thinks it will be better to delay the investment for a while because Gansu had a power shortage this year. 'The problem will be solved easily by next year because the gap in power will be filled with the launch of new power projects.' It is understood that the China and foreign parties had failed to reach an agreement on the cost of the rights to use electricity. Foreign investors are required to pay a lump sum for the quota of electricity they intend to buy each month before their plant starts operation. While cheap electricity in Gansu has attracted the attention of foreign investors to set up aluminium plants, the provincial government said it would not approve new aluminium plants in the short term because of their high electricity demand. Vice-governor Guo Kun said earlier that the provincial government had to invest even more than the owners of the aluminium plants. 'If a foreign investor invests in an aluminium plant with a capacity of 50,000 tonnes, I have to invest even more to provide 800 million kilowatt-hours to the plant,' he said. He said the province would approve more aluminium processing plants which produced down-stream products with a higher added value.