Rising energy prices are causing oil-rich governments, especially in the Middle East, to change their minds about hosting large aluminium projects, according to Rio Tinto, the world’s second-largest aluminium producer.

The Middle East had been seen as the next big region for aluminium industry expansion, because of the opportunities for signing low-cost electricity supply contracts to power energy-hungry smelters.

But as the price of oil has soared in recent months, governments in the region have cooled on the idea of hosting large new aluminium smelters, worried that they would be giving away their energy reserves too cheaply. ... Read full article