Chalco Plans to Operate Low-cost Aluminum Smelters

Aluminum Corporation of China Ltd (Chalco) plans to reduce production of those high-cost aluminum smelting devices and raise production of those low-cost devices, in a bid to cut production cost, said its board secretary Liu Qiang yesterday.

The company is now discussing the plan but has not clinched details and when to start the plans, said Mr. Liu. Zhang Qing, another Chalco executive, said that the plan would not impact the company's total output.

Currently, aluminum producers would lose around CNY 2,000-3,000 in producing every ton of aluminum, as they spend about CNY 17,000 producing a ton of aluminum but sell the products at about CNY 14,000 each ton, said industry analysts.

Chalco warned last week that its net profits for July-September 2008 would slump 50%-plus from a year ago, due to hiking raw material and fuel cost and slumping production prices.

Besides, Chalco said that it was enhancing construction of its own mines to lower production cost.

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