The Industrial Development Corporation (IDC) is confident the $2.5-billion Coega aluminium smelter will go ahead, it said on Wednesday.

IDC CEO Geoffrey Qhena said Canadian aluminium and packaging group Alcan was likely to go ahead with the construction of the smelter at the Eastern Cape industrial development zone, given the progress made on the negotiation of an electricity tariff for the smelter, Business Day reports.

A final decision would be made at an Alcan board meeting later in the year, according to Qhena.

The IDC may take a 15 percent stake in the smelter.

SA COMPANIES & BUSINESS INFO Trying to find your way around South Africa's corporate landscape? Looking for a info on a particular company or sector? After the latest business, financial or market news? Here's a quick directory of links to get you started.

MORE BUSINESS NEWS Spending boom far from over SABMiller launches Miller Brands UK Barloworld in R118m BEE deal Soft rand to boost Nedbank Flights cancelled as SAA strike starts Pepsi set to return to SA IDC/Thales deal to boost small firms Randgold may be delisted in the US SABMiller gets into South America Amazon.com opens in Cape Town Another fuel hike expected Mr Price sells Galaxy Division SARB signs R9.9bn loan deal SA group buys Zim gold mine Grindrod sees 75% jump in earnings