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CNMC Subsidiary to Construct 110,000t Aluminum Facility in Iran

Friday, Mar 21, 2008
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China Nonferrous Metal Industry's Foreign Engineering and Construction Co. Ltd. (NFC) announced it has entered a construction contract worth EUR 327 million with Sabzevar Pars Sarbedaran Aluminum Ind. Complex (Sabzevar)in Iran. According to the agreement, NFC will be responsible for designing, major equipment supply, construction, equipment installation and training for an aluminum smelter for Sabzevar, which will have an annual production capacity of 110,000 tons. Construction will take around 36 months. Sabzevar will inject 30 % into the project , 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. In October last year NFC, Jahad Tahghighat Group (JTG) and Jahad Tahghighat Sahand (JTS) jointly won a bid to construct a 200,000-ton alumina facility in Iran, and entered into a contract with the project owner, the Iran Mines and Mineral Industries Development and Renovation Organization. NFC, the Shenzhen-listed subsidiary of leading state-owned overseas mining enterprise China Nonferrous Metal Mining Group (CNMC), has various domestic and overseas projects, including the Baiyinnao'er Lead and Zinc Mine project in Inner Mongolia Autonomous Region and an aluminum complex in Jizan Province, Saudi Arabia. Sabzevar, registered in Iran, invests in aluminum, oil, natural gas, chemical and food projects.

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