August 28, 2008

CNMC subsidiary to construct aluminum facility in Iran

China Nonferrous Metal Industry's Foreign Engineering and Construction Company Ltd announced that it has entered a construction contract worth EUR 327 million with Sabzevar Pars Sarbedaran Aluminum Ind Complex in Iran.

According to the agreement, NFC will take charge of design, major equipment supply, construction, equipment installation and training for an aluminum smelter for Sabzevar which will have an annual production capacity of 110,000 tonnes. Construction will take around 36 months.

About 30% of the required investment for the project will come from Sabzevar, while the rest will come from bank loans and raised funds. However, NFC said there is uncertainty surrounding the project due to current international tension surrounding Iran's nuclear ambitions.

NFC, the Shenzhen listed subsidiary of leading state-owned overseas mining enterprise China Nonferrous Metal Mining Group has various domestic and overseas projects, including the Baiyinnao'er Lead and Zinc Mine project in Inner Mongolia Autonomous Region and an aluminum complex at Jizan Province in Saudi Arabia.