it is a water cooler for the oil filter (as best i can tell).
i think its the other way around actually.... a water heater for when the engines cold. gets the cooling system up to operating temp a little quicker???
maybe works as an oil cooler once the engines hot??
anyway. no idea if its an alloy block
but thinking on it, steel is about 3x heavier then aluminium, and blocks aint light. say a steel block is 70kg, then you expect the alloy block to be 20kg or so lighter wouldnt you??