CHINA ALUMINIUM VENTURE AIMS AT SOUTH KOREA
  China and Australia's Victoria state
  signed a joint venture contract for a 290 mln dlr aluminium
  processing plant in China that will export to South Korea,
  Australian officials told journalists.
      China has no official direct trade or government ties with
  Seoul, while it maintains close links with North Korea.
      China International Trust and Investment Corporation
  (CITIC) would have 75 pct of the equity in <Bohai Aluminium
  Industries Ltd>, the company to build the rolling mill and
  extrusion plant on the northeast China coast, they said.
      It was China's largest joint venture so far, they said.
      "A joint venture opens up the potential for penetrating
  markets that would not otherwise be possible (for China),"
  Victoria state treasurer Rob Jolly said.
      An Australian diplomat said CITIC was eager to pursue South
  Korean markets. Indirect trade between China and Seoul is
  growing but is not officially publicised.
      Victoria's <Aluvic Ltd>, on behalf of the state government,
  will hold a 25 pct equity stake in the project, which is
  intended as a sister plant to Victoria's Portland aluminium
  smelter. CITIC in May agreed to invest about 80 mln dlrs in
  Portland.
      The China-based joint venture would process Portland
  aluminium and aim to sell aluminium products to the domestic
  Chinese market as well as for export, Jolly said.
      The Australian side's investment was limited to about 22
  mln dlrs, but Aluvic would have the right to appoint key
  managers, he said.
      Australian officials said they hoped the goodwill generated
  by their participation would lead to further CITIC investment
  in Victoria. The Chinese group enjoys a high level of
  independence from Peking's central government and has extensive
  overseas investments.