Chalco to Fast-Track Alumina Plant Construction With USD122 Million Injection
Tang Shihua
DATE:  Sep 19 2018
/ SOURCE:  Yicai
Chalco to Fast-Track Alumina Plant Construction With USD122 Million Injection Chalco to Fast-Track Alumina Plant Construction With USD122 Million Injection

(Yicai Global) Sept. 19 -- Aluminum Corp. of China, better known as Chalco, plants to invest CNY838 million (USD122 million) in a subsidiary to speed up the construction of an alumina facility in south China.

Chalco will pump the money into Guangxi Huasheng New Materials, which is building the plant in Fangchenggang, Guangxi Zhuang Autonomous Region, the state-owned parent said in a statement yesterday. The firm will retain its 51 percent stake in the unit.

Construction of the plant began in June 2017 after Chalco's initial investment of around CNY50 million (USD7.3 million), but the work has been slow going. Given limited supplies of domestic ores and tighter environmental regulations, many aluminum producers have been building their plants in port cities -- but Chalco's project hit the ropes after it failed to pass an environmental impact assessment. It did not give a progress update or an expected date of completion in its statement.

Chalco will link the facility up with its overseas bauxite (aluminum ore) plants and domestic electrolytic aluminum projects, the firm said, adding that this should make Huasheng more competitive and profitable.

Overall investment in Huasheng is expected to reach CNY5.8 billion (USD850 million), with CNY1.74 billion going toward the alumina plant. Its only other backer is Guangxi Investment Group, which is owned by the provincial government and three local companies.

Editor: James Boynton

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Keywords:   Alumina,Aluminum,Fangchenggang,Chalco,Bauxite,Metals