Group items tagged

CHINALCO's interest in resources acquisitions and Anglo American's early moves into China back up the speculation that the two companies could engage in some form of partnership. Chinalco is the Chinese state-owned resources group tipped as a potential suitor to rescue Anglo American from the unwelcome advances of Xstrata, or as a co-investor in Anglo's MMX Minas- Rio iron-ore project in Brazil. Chinalco and Anglo American have declined to comment on the speculation that, after Anglo's board rejected Xstrata's all-share merger proposal last month, Anglo has been seeking a white knight in either Chinalco or Brazilian iron-ore giant Vale. Vale, though, has said publicly that it is not seeking acquisitions at present.

The Boards of Rio Tinto plc and Rio Tinto Limited (together "Rio Tinto") announce today that they are unanimously recommending to shareholders a transaction with Aluminium Corporation of China ("Chinalco"), a leading Chinese diversified resources company. The transaction will forge a pioneering strategic partnership through the creation of joint ventures in aluminium, copper, and iron ore as well as the issue of convertible bonds to Chinalco, which would, if converted, allow Chinalco to increase its existing shareholding in Rio Tinto.

Aluminium Corporation of China Daye Plate & Strip Co. Ltd. (Chinalco Daye) said that it has developed high precision copper strip that could be used in production of 3G communication cable. Chinalco Daye has a designed capacity of 60,000t of high precision copper sheet and strip, and 73,500t copper strip slab. The company produced 2,000t 5PPM high grade oxygen free copper casting ingot from March to July this year.

On August 19th, Chinalco began work on its 300 ktpa copper semis facility in Kunming, Yunnan Province. The company's three existing processing sites, Chinalco Luoyang Copper, Chinalco Shanghai Copper and Chinalco Daye Copper Sheet & Strip, account for around 28% of China's total copper sheet and strip capacity, with a combined total of 130 ktpa, and 220 ktpa of expansions under construction. The new facility, with total investment of RMB2 billion, will comprise a 100 ktpa sheet and strip facility and a 200 ktpa wire and rod facility.

The big question now is what happens to Rio Tinto. Chinalco, the Chinese miner that bought a seat at the dealmaking table in February with an audacious dawn raid of Rio shares, will play a key role.

Chinalco Luoyang Copper Co., Ltd. is working on a 100ktpy high-precision copper plate, sheet and strip (PSS) project. According to a survey carried out by Antaike, the project is expected to start operations at the end of 2009. Upon completion of the project, the company will have 200ktpy copper PSS output capacity. In 2008 Luoyang Copper produced 70,000 tonnes of copper PSS and 20,000 tonnes of copper wirerod and copper tube.

Rio Tinto's proposal to raise $19.5bn from Chinalco is seen by the mining group's board members and shareholders as an "option" to follow if there are no superior alternatives in the next three months, according to some Rio shareholders.

Chinalco is set to walk away from a $19.5bn deal with Rio Tinto following weeks of wrangling over the terms of the transaction, in a dramatic U-turn that sent shares in the Anglo-Australian miner sharply lower.

Chinalco Kunming, a Yunnan-based producer of low-oxygen copper wirerod, announced that it will increase its output of copper wirerod to 150,000t in 2013, up from 40,000t in 2012. The company started trial production in 2012 and operated below capacity for most of the year, with output of 5,000t in November and 4,000t in December. The company said its facilities have an production capacity of 220,000t at full capacity.

It was reported that Chinalco Luoyang Copper Co. Ltd. plans to boost production of copper semis in 2012. Output at the electronic copper strip plant is set to reach 55,000t this year. Overall, the company intends to produce 150,000t of nonferrous metal semis in 2012, up from 114,000t in 2011. Chinalco Luoyang Copper has a total nonferrous semis production capacity of 240,000t/y.

Chinese aluminium maker Chinalco may increase its minority stake in Anglo-Australian miner Rio Tinto if market conditions are right, but has no timetable for such a move, its president said on Monday.

It was reported that Chinalco Luoyang Copper will soon complete its 100ktpy copper strip and plate project, which commenced in July 2007. Investment amounted to 2.3B yuan and it is expected that when commissioned it will realise 5.6B yuan of annual sales income. The company was founded in 1954 and has annual capacity of 120kt of non ferrous metals products and 50kt of refined copper.

Chinalco Luoyang Copper Co. Ltd., a leading Chinese semis fabricator, commenced production at its new metal clad sheet manufacturing facility in Luoyang City, Henan Province. The facility, which cost RMB150M, has the capacity to output 20,000t/y of metal clad sheet. Chinalco Luoyang Copper Co. Ltd. has three production lines: the first fabricates copper and copper alloy flat rolled products; the second fabricates copper and copper alloy tube, rod and bar; while the third is used for the manufacture of flat rolled products made from aluminium, magnesium and their alloys.

Xinxing Zhunguan, a Zhejiang-based manufacturer of copper wirerod, plans to increase production at its facility to 165,000t in 2013, up by 10% from 150,000t in 2012. Despite low profitability at Chinese wirerod producers, an official at the company said Xinxing Zhunguan still plans to increase output in 2013 in order to enhance competitiveness. The company said it expects orders to be subdued in the run up to the Chinese Lunar New Year, but then expects a strong rebound after the holiday period. This is consistent with another report on 11th January from Reuters which cited several Chinese copper traders as expecting the period between now and the holiday to be quiet, followed by a strong rebound.

According to an official from Chinalco Kunming Copper Co., the Chinese wirerod manufacturer, the company produced 10,000t of copper wirerod in March, up from 7,000t in February. The official said that March's output of wirerod had risen because of a week-long shutdown in February for the Chinese New Year. However, output had still fallen short of the company's 13,000t target. Chinalco Kunming plans to produce 150,000t of wirerod in 2013, utilising around 68% of its 220,000t/y capacity. According to a report from Asian Metal, the company has recently settled its long-term charges for processing 8.0mm wirerod at RMB1,150/t (US$183/t).

Wirerod production at Hebei Dawufeng Copper has been temporarily suspended since early April in order to carry out maintenance. The company elected to halt production for a month in order to carry out equipment maintenance, owing to the currently sluggish wirerod market. Production at the plant, which has a wirerod production capacity of 100,000 t/y is scheduled to re-start in early May.