Chalco to invest US$1.2bln in Saudi Arabic

China Aluminum Corporation (Chalco)<601600><2600>, the country's largest aluminum producer, got the approval from Saudi Arabian government to launch a US$3 billion plant with Malaysia's MMC and local company SBG in Saudi Arab, according to China's Ministry of Commerce.

Chalco will hold 40% stake in the plant by investing US$1.2 billion. The plant is capable of producing 1 million tons of electrolytic aluminum annually, part of which will be exported to China. The Chinese aluminum giant will manage the production of the plant.

Construction of the new plant is scheduled to start in next year and be built in three stages. The Saudi Arabian governments will ensure the energy supply to the new plant.

Shares of Chalco continued to rise for two days, despite the slump of domestic stock markets, as the company announced to raise the price for alumina to RMB 3, 800 per ton, up 8.5% from current RMB 3, 500 per ton.