Chalco rises after parent's move
By Richard Fu |
June 9, 2011, Thursday
|
Print Edition
Print Edition
SHARES of Aluminum Corp of China, also known as Chalco, surged yesterday after its parent boosted rare earth capacity by consolidating five producers in Jiangsu Province.
Chinalco, the state-owned parent of Chalco, said it has taken over five rare earth producers and one trading company in the province to form the new Chinalco Rare Earth (Jiangsu) Co.
Chalco's shares jumped 10 yesterday to 11.14 yuan (US$1.72) in Shanghai. In Hong Kong, where listed companies are subject to tighter rules which require them to clarify unusual price and trading volume movements, Chalco gained 4 percent. Chalco issued a statement via the Hong Kong exchange that it's not in talks with its parent about the takeovers and didn't have any deals to announce.
The new company will have annual production capacity of 30,000 tons, bringing Chinalco's total rare earths capacity to 34,700 tons a year.
The takeover by Chinalco is seen as an urgent move to catch up with other state giants such as Minmetals in the rare earth sector amid a consolidation wave driven by the government. The Inner Mongolia Autonomous Region, China's largest rare earth producing region, last week said it will merge 35 producers under the Baotou Iron and Steel Group this month.
Chinalco, the state-owned parent of Chalco, said it has taken over five rare earth producers and one trading company in the province to form the new Chinalco Rare Earth (Jiangsu) Co.
Chalco's shares jumped 10 yesterday to 11.14 yuan (US$1.72) in Shanghai. In Hong Kong, where listed companies are subject to tighter rules which require them to clarify unusual price and trading volume movements, Chalco gained 4 percent. Chalco issued a statement via the Hong Kong exchange that it's not in talks with its parent about the takeovers and didn't have any deals to announce.
The new company will have annual production capacity of 30,000 tons, bringing Chinalco's total rare earths capacity to 34,700 tons a year.
The takeover by Chinalco is seen as an urgent move to catch up with other state giants such as Minmetals in the rare earth sector amid a consolidation wave driven by the government. The Inner Mongolia Autonomous Region, China's largest rare earth producing region, last week said it will merge 35 producers under the Baotou Iron and Steel Group this month.
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