Aluminum Corporation of China (Chalco), Malaysia's MMC and Saudi Binladin have signed a deal to set up an aluminium project in Saudi Arabia, a report said .

The three sides signed the deal in Beijing last week, the Khaleej Times report said.

The project, to cost $4.5 billion, includes an aluminium smelter and an equipped power plant in Jizan Economic City. 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.