Chinalco Expects CNY1.44bn Profit from Rio Tinto Investment

Aluminum Corporation of China (Chinalco) expects to get profits of CNY 1.44 billion in 2008 from investments in Australia-based iron ore producer Rio Tinto plc (NYSE: RTP; LON: RIO), said its Vice President Lv Youqing. 

Its subsidiary Aluminum Corporation of China Ltd. (NYSE: ACH; Chalco) and US-based Alcoa Inc. took a 9% stake in Rio Tinto via buying 12% of the latter's London-listed company for USD 14.05 billion in total this February. And the Chinese company now gets comparatively high floating profits from ownership of Rio Tinto shares and exchanges gains, said Mr. Lv.

Mr. Lv said that Chinalco's profit margin for the first half of 2008 declined, impacted by the macro-environment, and the company would strive to achieve its target of getting CNY 15 billion profits for 2008, despite that its production cost was further pushed up by rising electricity prices. The company set a goal of cutting its non-productive expenditure by 5%.

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