Aluminium producer Alcoa Inc
(ASX:AAI) has formed a joint venture with the Saudi Arabian Mining Company to develop a fully integrated, world-class aluminium industry in Saudi Arabia.
Alcoa says the joint venture will develop a bauxite mine with an initial capacity of 4 million metric tons per year, an alumina refinery with an initial capacity of 1.8 million tons per year, an aluminium smelter with an initial capacity of ingot, slab, and billet of 740,000 tons per year and a rolling mill with an initial hot-mill capacity of up to 460,000 tons per year.
Alcoa will own 40% of the joint venture through an investment partnership in which it will own 20% and its partners through participating in financing will own 20%.
Alcoa and its partners will invest $900 million over a four-year period and will be responsible for their pro rata share of the project financing, in addition to specific completion commitments.
Alcoa reported a $74 million loss for calendar 2008.
