Aluminium producer Alcoa Inc
(ASX:AAI) is to increase its investment in a planned $10.8 billion aluminium project in Saudi Arabia after a number of the company’s partners in a consortium left.
In December Alcoa announced that it had entered into a 60/40 agreement to build and operate an integrated bauxite mine, aluminium refinery, smelter and rolling mill in Saudi Arabia.
According to Reuters, Alcoa will now pay around $1.1 billion over a four year period, up from the $900 million announced in December.
Reuters reports that Alcoa's stake in the project will be 25.1% with state-owned Saudi Mining Company to own the remaining 74.9%.
Reuters says the affiliate that will hold Alcoa’s interests in the smelting company and rolling mill will be a wholly owned entity of the company.
Alcoa will hold a 60% interest in the mining and refining company with the remainder to be held by Australia’s Alumina.
Alcoa posted a $1.28 billion loss for 2009.
