Nov 3 (Reuters) - Aluminum Corp of China Ltd 601600.SS, 2600.HK, or Chalco, stated on Tuesday it co
Nov 3 (Reuters) – Aluminum Corp of China Ltd 601600.SS, 2600.HK, or Chalco, stated on Tuesday it could promote a 135,000 tonnes annual aluminium smelting capability quota to Yunnan Aluminium, persevering with the sector’s migration to China’s hydropower-rich southwest.
Yunnan Aluminium 000807.SZ, which like Chalco is a subsidiary of state-owned Chinalco, the world’s largest aluminium producer by capability, got here out on high in an public sale for the quota, bidding 538.65 million yuan ($80.64 million), excluding tax, Chalco stated in an change submitting.
The quota was accessible after Chalco shut down its Shandong Huayu smelting unit early final yr attributable to excessive prices.
Aluminium capability transfers between areas are permitted in China so long as they hold inside general quotas.
China, the world’s largest producer and client of the steel, is looking for to cap general smelting capability at round 45 million tonnes per yr to manage emissions.
In its personal submitting, Yunnan Aluminium, which is predicated in southwest China’s Yunnan province, stated successful the quota would “assist speed up implementation of the corporate’s built-in hydropower and aluminium improvement technique and additional improve competitiveness.”
It’s the second time in two years Chalco has transferred a capability quota to Yunnan Aluminium. In 2019, it bought a 170,000 tonnes quota after shuttering its Shanxi Huasheng subsidiary, making a 800 million yuan acquire from the disposal.
Chinalco took over Yunnan Aluminium in 2018 because it sought to faucet cleaner hydropower for the energy-intensive smelting course of. Chalco itself additionally holds a 10% stake in Yunnan Aluminium and 38.9% in Yunnan Aluminium’s Yixin Aluminum unit.
($1 = 6.6795 Chinese language yuan renminbi)
(Reporting by Tom Daly; Modifying by Mark Potter)
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