|China Nonferrous to co-build Iran alumina project
China Nonferrous Metal Industry's Foreign Engineering and Construction Co will co-build an alumina plant in Iran with annual capacity of 200,000 tonnes, it said in a company filing on Thursday.
The state-owned industrial conglomerate won the 380 million euro contract with two partners, Iran's Jahad Tahghighat Group and Jahad Tahghighat Sahand, and will be paid 75.5 million euros for designing, supplying and installing equipment and for training, the company said.
The company warned, however, that international tensions surrounding the country's nuclear activities created uncertainty regarding funding for the mid-sized plant.
"The project requires large investment, but the tense international political environment caused by Iran's nuclear issue makes it hard to raise the funds for the project," it said.
The United States is pushing for further U.N. sanctions against Iran, and France's foreign minister has called for EU action on sanctions to discourage Iran's nuclear projects, which the country has said are intended to generate electricity.
Shares in China Nonferrous were up 9 percent at 55.25 yuan in late morning trade, compared with a 1 percent rise in China's benchmark index.
China Nonferrous has been vigorously expanding its overseas operations. It has built a copper plant, a zinc smelter, a ferroally plant and an alumina plant in Iran. Last month, it announced it would sell equipment worth $135 million to a Kazakh smelter.