Aluminum Corp. of China Ltd. (ACH), or Chalco, has reached a deadlock in its latest talks with Saudi Arabian partner 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. 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 Jizan 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. The insider said that the two sides failed to reach an agreement on the specific issues of the project as it was expected, and Chalco will come to the local government to work out solutions together. Chalco A-share surged by the limit up of 10 percent to 14. 19 yuan Thursday.
