Aluminum Corporation of China Limited
|Xiong Weiping (CEO), Ge Honglin (Chairman of the Board)|
|Products||Aluminum and copper products|
|Revenue||RMB 71.1 billion (2013)|
|Owner||Aluminum Corporation of China (35.78%)
Number of employees
Aluminum Corporation of China Limited (Chinese: 中国铝业股份有限公司, known as Chalco), is a Chinese company listed in Hong Kong SAR and in New York. multinational aluminium company headquartered in Beijing, People's Republic of China. It is the world's second-largest alumina producer and third-largest primary aluminium producer (and the largest producer in China). Chinalco is principally engaged in the extraction of aluminium oxide, electrolyzation of virgin aluminium and the processing and production of aluminium as well as traded trading and engineering and technical services.
The major shareholder of the company was Aluminum Corporation of China known as Chinalco (Chinese: 中国铝业公司), a state owned enterprise .
The company has a number of distinct business segments including (1) alumina refining, (2) primary aluminum smelting, and (3) energy. The alumina refining segment consists of mining and purchasing bauxite, refining bauxite into alumina, and production and sales of alumina chemicals and metal gallium. The aluminum smelting segment smelts alumina to produce primary aluminum and also produces carbon products, aluminum alloy products, and other aluminum products. Finally the energy segment produces coal, generates electricity from coal, develops wind and solar power, manufactures new energy equipment, and integrates coal electricity generation with aluminum operations.
Until 2013, it was also engaged in aluminum fabrication but has since sold this business line.
Aluminum Corporation of China (Chinalco) is a state-backed holding company established to be the primary aluminium producer in the People's Republic of China in 2001. It is the parent company of Aluminum Corporation of China Limited (Chalco) which is listed on the New York, Hong Kong and Shanghai stock exchanges.
Chinalco holds a 9% stake in the Anglo-Australian mining company Rio Tinto. Rio Tinto controls large Iron ore reserves in Australia. On June 5, Rio Tinto broke a deal for Chinalco to purchase a larger stake in the company, with support by rival Anglo-Australian mining company BHP Billiton. Rio Tinto is expected to pay a US$195 million breaking fee according to the contract signed earlier by the two parties.
In 2010, Chinalco reported a net profit of ¥778.01 million, a dramatic rise when compared with the company's ¥4.62 billion profit losses from the previous year. The company credits increased prices and effective cost control strategies with the financial turnaround.
During July 2011, Chinalco signed a long-term agreement with Mongolian miner Tavan Tolgoi to import more than 15 million tons of coking coal annually to meet increased domestic demand.
Engineering and technical services
A subsidiary is China Aluminum International Engineering (Chalieco) which consists of businesses in engineering design and consultancy, engineering and construction contracting and equipment manufacturing. As a contractor it is the 124th largest construction firm in the world as ranked by Engineering News-Record in 2013. Chalieco was publicly listed on the Hong Kong Stock Exchange in 2012.
Through its aluminum fabrication unit, which was sold in 2013, Chinalco sold casting products, slab band products, foils, squeezing products, forging products, powder products, die-casting products, remelted aluminum ingots, and gallium metal and gallium oxide. These products are used in construction, electricity, packaging, transportation, nondurable consumer goods, hard board material, wire and cable, ceramics, refractory material, laundry, petrochemical, and aerospace industries.
As of 2013, Morococha was the site of a planned open pit copper mine to be operated by Aluminum Corporation of China Limited. A new town for the 5,000 residents of Morococha has been built about 6 miles away, but some residents were reported to be resisting location. The mine is projected to produce about 250,000 tons of copper a year for about 35 years.
Joint Venture with Rio Tinto
In 2011, China Aluminum Corporation and Rio Tinto, the world’s second largest mining company, created a joint venture in order to explore deposits in China. According to Rio Tinto chief executive Tom Albanese, the joint venture was meant to be “an important milestone in the expanding relationship between Rio Tinto and China.” Chinalco was the majority stakeholder of the project, holding 51% of shares, while Rio Tinto held 49%.
- Wu, Zijing; Campbell, Matthew; Paton, James (October 6, 2014). "Rio Tinto Rejected Takeover Approach From Glencore". Bloomberg News.
- Official website. Introduction. Accessed May 26, 2006.
- "2013 Interim Report" (PDF). Chalco.
- HANG SENG INDEXES ANNOUNCES INDEX REVIEW RESULTS
- John Simpson (journalist), BBC News, Peru's 'copper mountain' in Chinese hands Accessed June 18, 2008
- Treanor, Jill (February 1, 2009). "Rio Tinto confirms talks over Chinese cash injection". guardion.co.uk. Guardian News and Media Limited. Retrieved April 7, 2009.
- Rio Tinto agrees to pay Chinalco break fee - The Australian
- "The Top 250 Global Contractors". Engineering News Record.
- William Neuman (January 6, 2013). "Hundreds in Peru Balk at Relocation From Site of Mine". The New York Times. Retrieved January 7, 2013.
- "Rio Tinto and Chinalco form joint venture for exploration in China". Retrieved January 18, 2017.
- "Rio Ends Quest for China Mine Riches With Biggest Holder". Bloomberg. Retrieved January 18, 2017.