Aluminum Corporation of China Limited (Chalco), the Shanghai-listed arm of China Aluminum Group, has announced on November 21 that it would join the bidding to buy 50% stake in Shanxi Huaxing Aluminum Co. The company intends to buy back the shares from the state-owned Baotou Transportation Investment Group, who is withdrawing its shares from the bauxite miner and alumina refinery.
Shanxi Huaxing, an alumina producer located in Lvliang in North China’s Shanxi province, has an alumina capacity of 3 million tpy and an operating bauxite mine with 1.32 million tpy capacity.
{alcircleadd}Chalco used to hold 60% stake in Shanxi Huaxing Aluminum and the remaining 40% was owned by its wholly-owned subsidiary Chalco Hong Kong. Then, the company sold of 50% stake in Shanxi Huaxing Aluminium Co. via a public tender for RMB 2.35 billion in 2015 in order to increase its liquidity at a time when aluminium prices were at a low level and Chinese market was suffering from a supply glut. After the sell, Chalco had 10% stake in the company. Now the company wants to buy back the 50% stake to increase it alumina capacity.
Shanxi Huaxing Aluminum Co. commissioned high-temperature Digestion line for Bayer alumina production in 2017. The line has a capability of processing 1 million tonnes of diasporic bauxite per year, the largest in the world.
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