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.
(China Daily August 22, 2007)
