Chinalco To Explore Rare Earth In Guangxi

January 20 – Aluminum Corporation of China (Chinalco) is about to set up a joint venture with Guangxi Non-Ferrous Metal Group to jointly exploit rare earth resources in Guangxi province, reports reuters.com.

Chinalco will have the controlling stake in the proposed joint venture, according to a spokeperson of the company.

Guangxi Non-Ferrous Metal Group, the only group with the mining rights to rare earth in Guangxi, plans to invest three billion yuan into Golden Source Rare Earth to support the latter’s technology upgrading and commence six major construction projects.

The group has a 55 percent stake in Golden Source Rare Earth and intends to invest about 2.5 billion yuan to integrate seven non-ferrous metal resources projects in the region.

Chinalco recorded a 41 percent year-on-year increase in 2010 sales revenue to 200.3 billion yuan while operating profit totaled 2.7 billion yuan.

Output of alumina rose 29.6 percent year-on-year, output of electrolytic aluminum increased 22.2 percent while output of refined copper was up 11.9 percent year-on-year.

Shares of Aluminum Corporation of China (601600, 2600.HK), a subsidiary of Chinalco, rose 4.3 percent to close at 10.44 yuan today.