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29 MAY 2018 AL CIRCLE

Chinalco signs a deal with Yunnan government and secures more smelting capacity

EDITED BY : DEBANJALI SENGUPTA 1MINS READ

China’s largest state aluminium producer Chinalco is all set to close the gap on privately run China Hongqiao Group, the world’s top aluminium producer, as it signs a deal with the Yunnan government, which will give access to the company to more smelting capacity of around 1.6 million tonnes, with another 1.45 million tonnes in the pipeline or under construction.

A spokesman for Chinalco confirmed it would be Chinalco’s first aluminium asset in the province. 

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According to a Yunnan aluminium statement on Monday, May 28, 2018, Yunnan metallurgy group, that controls Yunnan Aluminium Co. Ltd., will get merged into China Copper Co., a joint venture between Chinalco and the Yunnan provincial government. Chinalco, officially the Aluminium Corp of China owns 58 per cent of the joint venture, while the Yunnan Government owns the rest 42 per cent.

This move is because Chinese aluminium producers are keen to tap the hydropower exposure in Yunnan, as the government decided to crack down on coal-fired power.

"I wouldn't say it was cheaper, but it's more environmentally friendly (and) ... better for future development," said Jackie Wang, an aluminium analyst at CRU in Beijing.


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EDITED BY : DEBANJALI SENGUPTA 1MINS READ

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