Chalco looks to diversify into coal

SHANGHAI: Aluminum Corp of China Ltd (Chalco), the world’s biggest aluminium company by market value, said yesterday it aimed to diversify into the coal and rare earth businesses, as aluminium prices remain volatile.

Chalco on Monday reported a loss in the second quarter, hit by a domestic supply glut for aluminium that dragged down prices for the lightweight metal.

Chalco plans to build two to three coal production bases in the next three years, aiming to obtain “sizeable” coal resources over that period, chairman Xiong Weiping told reporters following the announcement of its second-quarter results.

It also saw rare earth as a priority for the diversification of the company’s business, Xiong added, without giving further details.

Chalco is the listed unit of state-owned group Chinalco.

“The listed firm is an important platform and component for Chinalco’s diversification effort, and it is entering coal and iron ore businesses,” said Xiong.

Chalco is interested in high-quality copper resources at home and abroad as well, Xiong said.

The plans for further diversification follow Chalco’s recent agreement to invest US$1.35bil in a Guinea joint venture that partner Rio Tinto claims to be the world’s largest undeveloped iron ore deposit.

The moves also come amid increasing pressure on margins on account of what analysts say was overcapacity in the sector after producers restarted idled facilities and new production exceeded demand growth. – Reuters

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.