Aluminum Corporation of China Limited (, known as Chalco), is a Chinese company listed in
Hong Kong
Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China ( abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delt ...
and in New York.
A
multinational aluminium
Aluminium (aluminum in American and Canadian English) is a chemical element with the symbol Al and atomic number 13. Aluminium has a density lower than those of other common metals, at approximately one third that of steel. I ...
company, its headquarters are in
Beijing
}
Beijing ( ; ; ), alternatively romanized as Peking ( ), is the capital of the People's Republic of China. It is the center of power and development of the country. Beijing is the world's most populous national capital city, with over 21 ...
,
People's Republic of China
China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...
. It is the world's second-largest
alumina producer and third-largest primary aluminium producer (and the largest producer in China).
Chinalco is principally engaged in the extraction of
aluminium oxide,
electrolysis
In chemistry and manufacturing, electrolysis is a technique that uses direct electric current (DC) to drive an otherwise non-spontaneous chemical reaction. Electrolysis is commercially important as a stage in the separation of elements from n ...
of virgin aluminium and the processing and production of aluminium as well as traded trading and engineering and technical services.
Its primary listing is on the
Shanghai Stock Exchange
The Shanghai Stock Exchange (SSE) is a stock exchange based in the city of Shanghai, China. It is one of the three stock exchanges operating independently in mainland China, the others being the Beijing Stock Exchange and the Shenzhen Stock Exc ...
and it is a constituent of the
SSE 180
SSE 180 Index is the stock index of Shanghai Stock Exchange, representing the top 180 companies by "float-adjusted" capitalization and other criteria. SSE 180 is a sub-index of SSE Composite Index, the latter included all shares of the exchange.
...
index. It has a
secondary
Secondary may refer to: Science and nature
* Secondary emission, of particles
** Secondary electrons, electrons generated as ionization products
* The secondary winding, or the electrical or electronic circuit connected to the secondary winding i ...
listing on the
Hong Kong Stock Exchange
The Stock Exchange of Hong Kong (SEHK, also known as Hong Kong Stock Exchange) is a stock exchange based in Hong Kong. As of the end of 2020, it has 2,538 listed companies with a combined market capitalization of HK$47 trillion. It is repor ...
.
The major shareholder of the company was Aluminum Corporation of China known as Chinalco (), a state owned enterprise.
Organization
The company has a number of distinct business segments including (1) alumina refining, (2) primary aluminum smelting, and (3) energy.
The alumina refining segment consists of mining and purchasing bauxite, refining bauxite into alumina, and production and sales of alumina chemicals and metal gallium.
The aluminum smelting segment smelts alumina to produce primary aluminum and also produces carbon products, aluminum alloy products, and other aluminum products.
Finally the energy segment produces coal, generates electricity from coal, develops wind and solar power, manufactures new energy equipment, and integrates coal electricity generation with aluminum operations.
Until 2013, it was also engaged in aluminum fabrication but has since sold this business line.
History
Aluminum Corporation of China (Chinalco) is a state-backed holding company established to be the primary aluminium producer in the People's Republic of China in 2001.
It is the parent company of Aluminum Corporation of China Limited (Chalco) which is listed on the
New York
New York most commonly refers to:
* New York City, the most populous city in the United States, located in the state of New York
* New York (state), a state in the northeastern United States
New York may also refer to:
Film and television
* '' ...
,
Hong Kong
Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China ( abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delt ...
and
Shanghai
Shanghai (; , , Standard Mandarin pronunciation: ) is one of the four direct-administered municipalities of the People's Republic of China (PRC). The city is located on the southern estuary of the Yangtze River, with the Huangpu River flow ...
stock exchanges.
Effective from 10 June 2008, Chalco was added to the
Hang Seng Index Constituent Stock
The Hang Seng Index (HSI) is a freefloat-adjusted market- capitalization-weighted stock-market index in Hong Kong. It is used to record and monitor daily changes of the largest companies of the Hong Kong stock market and is the main indicator ...
(
blue chip
Blue chip may refer to:
* Blue casino token
* Blue chip (stock market), a corporation with a national reputation for quality, reliability, and the ability to operate profitably
* Blue chip (sports), collegiate athletes who are targeted by professio ...
).
Chinalco is investing $3 billion to begin open-cast mining operations, within three to four years, in
Morococha District
Morococha District is one of ten districts of the province Yauli in Peru. Instituto Nacional de Estadística e Informática
The Instituto Nacional de Estadística e Informática (INEI) ("National Institute of Statistics and Informatics") is ...
,
Peru
, image_flag = Flag of Peru.svg
, image_coat = Escudo nacional del Perú.svg
, other_symbol = Great Seal of the State
, other_symbol_type = Seal (emblem), National seal
, national_motto = "Fi ...
. The company plans to extract copper ore from
Mount Toromocho
Mount Toromocho is a mountain in the Junín Region, Peru that sits next to the long established mining camp of Morococha and hosts a large polymetallic metal deposit. ''Toromocho'' means in Spanish "a bull with no horns". It is now owned by the A ...
.
Chinalco holds a 9% stake in the Anglo-Australian mining company
Rio Tinto.
Rio Tinto controls large
Iron ore
Iron ores are rocks and minerals from which metallic iron can be economically extracted. The ores are usually rich in iron oxides and vary in color from dark grey, bright yellow, or deep purple to rusty red. The iron is usually found in the fo ...
reserves in
Australia
Australia, officially the Commonwealth of Australia, is a Sovereign state, sovereign country comprising the mainland of the Australia (continent), Australian continent, the island of Tasmania, and numerous List of islands of Australia, sma ...
. On June 5, Rio Tinto broke a deal for Chinalco to purchase a larger stake in the company, with support by rival Anglo-Australian mining company
BHP
BHP Group Limited (formerly known as BHP Billiton) is an Australian multinational mining, metals, natural gas petroleum public company that is headquartered in Melbourne, Victoria, Australia.
The Broken Hill Proprietary Company was founded ...
. Rio Tinto is expected to pay a US$195 million breaking fee according to the contract signed earlier by the two parties.
In 2010, Chinalco reported a net profit of ¥778.01 million, a dramatic rise when compared with the company's ¥4.62 billion losses from the previous year. The company credits increased prices and effective cost control strategies with the financial turnaround.
During July 2011, Chinalco signed a long-term agreement with Mongolian miner Tavan Tolgoi to import more than 15 million tons of coking coal annually to meet increased domestic demand.
Operations
Engineering and technical services
A subsidiary is
China Aluminum International Engineering (Chalieco) which consists of businesses in engineering design and consultancy, engineering and construction contracting and equipment manufacturing. As a contractor it is the 124th largest construction firm in the world as ranked by Engineering News-Record in 2013. Chalieco was publicly listed on the
Hong Kong Stock Exchange
The Stock Exchange of Hong Kong (SEHK, also known as Hong Kong Stock Exchange) is a stock exchange based in Hong Kong. As of the end of 2020, it has 2,538 listed companies with a combined market capitalization of HK$47 trillion. It is repor ...
in 2012.
Aluminum fabrication
Through its aluminum fabrication unit, which was sold in 2013, Chinalco sold casting products, slab band products, foils, squeezing products, forging products, powder products, die-casting products, remelted aluminum ingots, and gallium metal and gallium oxide. These products are used in
construction
Construction is a general term meaning the art and science to form objects, systems, or organizations,"Construction" def. 1.a. 1.b. and 1.c. ''Oxford English Dictionary'' Second Edition on CD-ROM (v. 4.0) Oxford University Press 2009 and com ...
,
electricity
Electricity is the set of physical phenomena associated with the presence and motion of matter that has a property of electric charge. Electricity is related to magnetism, both being part of the phenomenon of electromagnetism, as described ...
,
packaging
Packaging is the science, art and technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging also refers to the process of designing, evaluating, and producing packages. Packaging can be described as a co ...
,
transportation
Transport (in British English), or transportation (in American English), is the intentional movement of humans, animals, and goods from one location to another. Modes of transport include air, land (rail and road), water, cable, pipeline, ...
, nondurable consumer goods, hard board material, wire and cable,
ceramics,
refractory
In materials science, a refractory material or refractory is a material that is resistant to decomposition by heat, pressure, or chemical attack, and retains strength and form at high temperatures. Refractories are polycrystalline, polyphase, ...
material,
laundry
Laundry refers to the washing of clothing and other textiles, and, more broadly, their drying and ironing as well. Laundry has been part of history since humans began to wear clothes, so the methods by which different cultures have dealt with t ...
,
petrochemical
Petrochemicals (sometimes abbreviated as petchems) are the chemical products obtained from petroleum by refining. Some chemical compounds made from petroleum are also obtained from other fossil fuels, such as coal or natural gas, or renewable sou ...
, and
aerospace
Aerospace is a term used to collectively refer to the atmosphere and outer space. Aerospace activity is very diverse, with a multitude of commercial, industrial and military applications. Aerospace engineering consists of aeronautics and astrona ...
industries.
Peru
As of 2013,
Morococha
Morococha is a town in the Morococha District in the Yauli Province of the Junín Region in Peru. It was the capital of the Morococha District until September 12, 2013, when the town of Nueva Morococha (Spanish ''nuevo(a)'' new, "new Morococha") ...
was the site of a planned
open pit
Open-pit mining, also known as open-cast or open-cut mining and in larger contexts mega-mining, is a surface mining technique of extracting rock or minerals from the earth from an open-air pit, sometimes known as a borrow.
This form of mining ...
copper
Copper is a chemical element with the symbol Cu (from la, cuprum) and atomic number 29. It is a soft, malleable, and ductile metal with very high thermal and electrical conductivity. A freshly exposed surface of pure copper has a pinkis ...
mine
Mine, mines, miners or mining may refer to:
Extraction or digging
* Miner, a person engaged in mining or digging
*Mining, extraction of mineral resources from the ground through a mine
Grammar
*Mine, a first-person English possessive pronoun
...
to be operated by Aluminum Corporation of China Limited. A new town for the 5,000 residents of Morococha has been built about 6 miles away, but some residents were reported to be resisting relocation. The mine is projected to produce about 250,000 tons of copper a year for about 35 years.
In April 2017, owing to
Peru
, image_flag = Flag of Peru.svg
, image_coat = Escudo nacional del Perú.svg
, other_symbol = Great Seal of the State
, other_symbol_type = Seal (emblem), National seal
, national_motto = "Fi ...
's increasing importance as a copper supplier to China, Chinalco announced an investment of $1.3 billion to expand copper production after failing to reach its output target last year. The expansion is projected to add 70,000 tonnes a year to the project.
Chinalco has invested $1.3 billion in its
Toromocho mine in 2018, which it acquired in 2007. The project came online in 2013 and is, besides copper, primarily producing silver and molybdenum. The investment constitutes an increase of 45 percent by 2020, with the value of production from this move expected to exceed $2 billion.
Joint Venture with Rio Tinto
In 2011, China Aluminum Corporation and
Rio Tinto, the world's second largest mining company, created a
joint venture
A joint venture (JV) is a business entity created by two or more parties, generally characterized by shared ownership, shared returns and risks, and shared governance. Companies typically pursue joint ventures for one of four reasons: to acces ...
in order to explore deposits in China.
According to Rio Tinto chief executive
Tom Albanese
Tom Albanese (born ) was the former chief executive officer of the Vedanta Resources and was the former chief executive officer and a board member of the Rio Tinto Group. He was asked to resign from Rio Tinto on January 17, 2013 and was replaced ...
, the joint venture was meant to be “an important milestone in the expanding relationship between Rio Tinto and China.” Chinalco was the majority stakeholder of the project, holding 51% of shares, while Rio Tinto held 49%.
On January 18, 2017, it was reported that the two corporations had terminated the joint venture, and had begun to
liquidate
Liquidation is the process in accounting by which a company is brought to an end in Canada, United Kingdom, United States, Ireland, Australia
Australia, officially the Commonwealth of Australia, is a Sovereign state, sovereign coun ...
the joint venture company, Chinalco Rio Tinto Exploration Co.
References
External links
*
*
{{authority control
Companies formerly in the Hang Seng China Enterprises Index
Manufacturing companies based in Beijing
Companies formerly listed on the New York Stock Exchange
Companies listed on the Hong Kong Stock Exchange
Companies listed on the Shanghai Stock Exchange
Aluminium companies of China
Former companies in the Hang Seng Index
Companies in the Hang Seng China Enterprises Index
Government-owned companies of China
Metal companies of China
Non-renewable resource companies established in 2001
2001 establishments in China