China's top economic planner has approved a 1-million-ton alumina project proposed by Shanxi Tongde Aluminum Co., the National Development and Reform Commission said in a statement.

The project, to be located in Baode county, Shanxi province, will involve the construction of a power plant and a bauxite mine, whose ores can be processed into alumina, NDRC said in the statement without providing a timeframe of the project.

When completed, the project may add to the existing oversupply of alumina, from which primary aluminum is made, industry participants said.

China produced 17.49 million tons of alumina in the first half of this year, with a record high production of 3.14 million tons in June, which led to a fresh high of primary aluminum output of 1.59 million tons last month.

China is the world's largest producer of alumina and primary aluminum.