Metal Products News
- Chinalco boosts copper
Date: 22-Aug-2007 Sources: (People's Daily)
Aluminum Corp of China (Chinalco), the nation's biggest aluminum and alumina producer, will take a 49 percent stake in Yunnan Copper Group to boost its output of the metal.
Chinalco signed a purchase deal with Yunnan's provincial government on Sunday that will make it the majority shareholder, Yunnan Copper's listed subsidiary Yunnan Copper Industry Co Ltd said in a statement to the Shenzhen Stock Exchange.
Chinalco will use Yunnan Copper's resources to help develop its local and overseas copper assets, the statement said.
'Chinalco's copper production is much smaller than its main aluminum business, and it's trying to expand copper manufacturing capacity,' said Shang Fushan, an analyst at the China Nonferrous Metals Industry Association.
Chinalco said last week it had acquired a 91 percent stake in Peru Copper Inc for about $860 million.
Peru Copper has exploration rights at Toromocho copper mine in Peru, which has estimated reserves of about 12 million tons of copper equivalent.
Chinalco's quick expansion has pushed up its demand for resources, Xiao Yaqing, president of the company, said earlier.
Its listed company Chalco posted a 5 percent drop in net profit to 6.4 billion yuan for the first half of the year.
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