The Coega Development Corporation (CDC) on Friday said it has not yet received any official communication from the Rio Tinto Group on its plans to scrap its planned R24-billion aluminium smelter at Coega.

In a statement issued on Thursday night, South Africa's Department of Trade and Industry, Eskom, the Industrial Development Corporation (IDC) and Rio Tinto said the supply of electricity to the Coega smelter project near Port Elizabeth was insufficient to proceed.

CDC business development manager Kwezi Tiya confirmed that the CDC had not had any discussions with Rio Tinto and until such stage has no comment.

Tiya said the CDC is proceeding nevertheless with the current projects, worth R150-billion.

These include a plan by PetroSA to build a $10-billion crude oil refinery and various other industrial projects.

But as Business day pointed out in a report on Friday, the 720 000 ton smelter project would have provided a much-needed anchor tenant for Coega.

Other major projects also hang in the balance while South Africa faces serious electricity supply constraints.

Rio Tinto's decision to pull out of the investment is a blow to the South African government's aspirations to locate heavy industry in Coega.

Coega, which had been on the cards since 2001, has often been cited as a catalyst for foreign direct investment.

"The cancellation also raises doubt on whether the power-intensive project ? proclaimed two years ago by the government as its largest single greenfield investment ? will get off the ground," said Business Day.