The project, to cost $4.5 billion, includes an aluminium smelter plant and an equipped power plant in Jizan Economic City, under an agreement the three sides signed in Beijing on Friday, according to information made available to Khaleej Times here on Saturday.   The smelter will have an annual production capacity of 1 million tonnes.

Chalco would take a 40 per cent stake in the plant as the largest shareholder and control 20 percent of the power plant shares. It would also provide technology and alumina for the project.

According to earlier reports, Chalco was to take a 40 per cent stake in the project, while MMC and Binladin would each take 20 percent stakes. Other Saudi investors would share the remaining 20 per cent stake.

The three sides also signed a memorandum of understanding on supporting issues with the Saudi Arabia General Investment Authority, which promised to offer necessary support to the joint-venture project.

In a statement on Friday, MMC Corp said that the aluminium project will benefit from low-cost power after the government agreed to supply subsidised fuel to a power plant.

The subsidised fuel oil will "allow the power plant to supply low-cost electricity to industries" within Jizan.