(XFN-ASIA, Oct 19, 2006)BEIJING - Aluminum Corp of China (Chalco), China's largest aluminium producer, is in talks to build smelters in the Middle East to cut fuel costs as electricity prices increase at home, the South China Morning Post reported, citing a company official.

'Electricity is one of the major costs to make aluminium. We're considering building smelters in the Middle East to take advantage of its affluent oil and gas resources and lower our electricity bill,' the Hong Kong newspaper quoted chief financial officer Chen Jihua as saying.

Chalco's plans to produce more aluminium abroad coincides with China's electricity tariff hikes a few times this year to ease rising coal costs at power generators.

Source:Forbes

tag:China energy oil