It is reported that China's leading aluminum supplier Chinalco has kicked off the construction of a sponge titanium project boasting a designed annual output capacity of 30,000 tonnes in Jiamusi city of Heilongjiang Province, Northeast China

As per report, the project co-invested by Aricom with rich mineral resources in the Far East area of Russia bordering Heilongjiang Province, will be undertaken in two stages, with the annual capacity for the first stage at 15,000 tonnes. Scheduled to start production in 2010, the project will involve a total investment of CNY 4 billion in which Chinalco will take a controlling stake of over 51 % and be responsible for sale of all sponge titanium products from the project.

Aricom will supply the project with titanium concentrates it produces in Russia.

The project will significantly lift the capacity of China's sponge titanium industry, which now has nearly 20 factories with aggregate annual production of some 45,000 tonnes.