03 FEBRUARY 2015AlCircle.com
Chalco expects $2.6bn loss in 2014
Edited by : AL CIRCLE
1 min read
China’s state-owned aluminium producer, Aluminium Corp of China (Chalco), is expecting a loss of 16.4 billion yuan ($2.6 billion) for 2014 due to low aluminium prices and impairment charges.
Impairment charges are seen in many areas like a 5.5 billion yuan impairment charge in Chalco’s earnings where 3.3 billion yuan in attributed to the 800,000-tpy Chongqing alumina project that has been suffering losses owing to the low alumina prices.
Impairments worth almost 1.4 billion yuan are found in the four subsidiaries of the Chalco Ningxia Energy Group related to the silicon industry according to Chalco’s filing in the Hong Kong Exchange.
In 2013, Chalco had swung towards profits of 948 million yuan as a result of some cost cuts and selling of assets and spurred by the global aluminium production reaching a record high of 4.66 million tonnes in December as per the International Aluminium Institute.
Impairment charges are seen in many areas like a 5.5 billion yuan impairment charge in Chalco’s earnings where 3.3 billion yuan in attributed to the 800,000-tpy Chongqing alumina project that has been suffering losses owing to the low alumina prices.
Impairments worth almost 1.4 billion yuan are found in the four subsidiaries of the Chalco Ningxia Energy Group related to the silicon industry according to Chalco’s filing in the Hong Kong Exchange.
In 2013, Chalco had swung towards profits of 948 million yuan as a result of some cost cuts and selling of assets and spurred by the global aluminium production reaching a record high of 4.66 million tonnes in December as per the International Aluminium Institute.
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