Chalco sees delay in venture with Alcoa
Aluminum Corp of China's (Chalco) proposed joint venture with United States-based aluminum giant Alcoa may be delayed.
Zhang Qing, a manager at Chalco, said the procedure to obtain the mainland government's approvals for the launch of the venture was still under way.
Therefore, 'time is quite pressing for us to launch the joint venture on January 1 as scheduled', Ms Zhang said. The remark was in response to a Bloomberg news report that government approval for the project had been delayed until next year.
Chalco and Alcoa would form a 50:50 joint venture for the alumina and primary aluminium production at the Chinese firm's Pingguo plant in Guangxi province.
To set up the venture, Chalco would contribute one half of the plant's assets while Alcoa would contribute US$250 million in cash.
'With a project of this magnitude, you have to expect some delays,' said Galdino Claro, Alcoa's China president, who was quoted by Bloomberg.
Apart from the project, Alcoa, the world's second-biggest aluminium maker, is also a strategic investor in Chalco holding an 8 per cent stake.
Ms Zhang said the two partners and government officials were working on issues relating to domestic electricity supply.
