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Chalco shares surge after rare earths announcement
Edited by : AL CIRCLE
1 min read
Shares of Aluminum Corp of China (Chalco) surged by the 10 percent daily limit to 11.14 yuan ($1.72) on Wednesday on the Shanghai Stock Exchange after its parent company announced the establishment of a rare earth extraction unit in Jiangsu Province to consolidate five local rare earth firms.
Hong Kong-listed shares in Chalco, the country's top producer of nonferrous metals like aluminum and copper, also rose 4 percent on Wednesday.
The unit in Jiangsu, founded Tuesday, will have a production capacity of more than 30,000 tons of rare earth, according to an emailed statement from the company on Wednesday.
"Chalco has progressed in the rare earth smelting sector since it entered the industry two years ago, but it still hasn't made enough advances in the upper reaches of the industrial chain," said An Haixuan, an analyst with CIC Industry Research Center.
Chalco closed rare earth-related deals in Jiangxi and Guangdong provinces last year and this year, it said.
Rare earth minerals are used in high tech products including mobile phones and batteries for hybrid cars as well as in the aerospace industry.
Hong Kong-listed shares in Chalco, the country's top producer of nonferrous metals like aluminum and copper, also rose 4 percent on Wednesday.
The unit in Jiangsu, founded Tuesday, will have a production capacity of more than 30,000 tons of rare earth, according to an emailed statement from the company on Wednesday.
"Chalco has progressed in the rare earth smelting sector since it entered the industry two years ago, but it still hasn't made enough advances in the upper reaches of the industrial chain," said An Haixuan, an analyst with CIC Industry Research Center.
Chalco closed rare earth-related deals in Jiangxi and Guangdong provinces last year and this year, it said.
Rare earth minerals are used in high tech products including mobile phones and batteries for hybrid cars as well as in the aerospace industry.
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