China Non-ferrous Metal Plans Alumina JV Plant in Laos     

China Non-ferrous Metal Industry's Foreign Engineering and Construction Co., Ltd. (NFC, SZ: 000758) said on November 10th that it had made major progress in its bauxite project in Laos.
   On November 6th, SARCO, a 51 : 49 joint venture between NFC and Australia's ORD, signed an agreement with Laos LSI to jointly develop the bauxite resource in Pakxong region.
   Under the accord, SARCO will undertake a study on exploration and economic viability for the bauxite deposit in Pakxong, Champasak province. This will take about 18 months. The Lao government has granted SARCO to explore the mining area covering 66 square kilometers.
   If the exploration results are satisfactory, and the reserves and ore grade can be in line with the project process, the two parties will set up a joint venture to apply for extraction approval by the Lao government and building an alumina plant.
   If the project proves to be commercially viable, the proposed JV will invest US$500 million to build an alumina facility with initial capacity of 600 000 t/a. The capacity will be expanded to 1.8 million t/a later. The venture will be 49% owned by LSI and 51% owned by SARCO.
   The two companies also agreed to use loans to fund the projects and SARCO will be responsible for securing financiers.
   A NFC official said the Laos project, if successful, will add to the company's high-quality bauxite deposit and play a key role to help the company realize sustainable growth and achieve a strategic transformation. The company, originally focused on engineering contracting, is shifting to nonferrous mining and refining as its main business.