Sino Australian Resources (SARCO) has signed a memorandum of understanding (MoU) with China Non-Ferrous Metal Industry's Foreign Engineering & Construction (NFC) for the sale of alumina from its Laos aluminium joint venture project.
Under the 20-year agreement, SARCO will supply about 600,000t of alumina annually from the Laos mine to NFC.
The sale price will be based on the international market prices and is subject to be changed according to the market prevailing prices.
Both the firms will convert this MoU into a binding contract, prior to the construction of the planned alumina refinery in Laos.
Ord Resources holds 49% stake in SARCO, and the remaining 51% stake is held by NFC.