Alcoa Inc. and Chalco have received approval from the China NDRC to proceed with the formation of their proposed joint venture in South China.

Alcoa Inc. and Aluminum Corp. of China Limited (Chalco) have received approval from the China National Development and Reform Commission (NDRC) to proceed with the formation of their proposed joint venture at the Pingguo Aluminum facility in the Guangxi Zhang Autonomous Region in South China. When Alcoa participated as the strategic investor in Chalco's global public offering and listing on the New York Stock Exchange and The Stock Exchange of Hong Kong in December 2001, the parties agreed to form a 50/50 joint venture at Chalco's facility at Pingguo. The facility's current alumina refining capacity is 850,000 metric tons per year (mtpy), and the capacity of the aluminum smelter is 135,000 mtpy. The parties have committed to growth at Pingguo over the next few years. Under the terms of the NDRC approval, these growth projects will be submitted for regulatory approval after formation of the joint venture. Alcoa and Chalco expect to receive final regulatory approvals within China by the end of 2004.

Alcoa's website is located at http://www.alcoa.com.