Alcoa did not plan to make a decision on investment in China until the end of 1999 but the total could be as high as $1 billion, said the sources, who asked not to be named.

An Alcoa delegation travelled to China in August and visited a number of companies with an eye towards future investment, they said.

The companies included Qinghai Smelter in the western region of Qinghai, Guizhou Aluminium Smelter in Guizhou province in the southwest, the Pingguo Aluminium Smelter in southern province of Guangxi, and Qingtongxia Aluminium Smelter in the western region of Ningxia, they said.

Other companies visited included the Southwest Aluminium Fabricating Plant in Chongqing city and the Northeast Aluminium Fabricating Plant in Harbin city, the sources said.

The group also met aluminaproducers in eastern province of Shandong and the northern province of Shanxi, they said.

"The market here is promising, so they want to do something in this market," one source said.