Chalco Plans Max Financing of RMB 10 bln Via Private Placement

BEIJING, July 2 -- China's top aluminum producer Chalco announced Wednesday it plans to raise no more than 10 billion yuan via private placement to finance its alumina projects and replenish its working capital.

    Chalco said it will issue no more than one billion A-shares to institutions including funds, securities firms and insurance companies as well as other qualified investors.

    The company will remain the controlling shareholder after the placement, but its 41.82 percent stake will be trimmed to 39.94 percent.

    According to Chalco, 80 percent of the raised capital will be appropriated to its alumina projects, with 2.3 billion yuan going to the Chongqing alumina project with a designed annual capacity of 800,000 tons and 3.7 billion yuan to the Xingxian alumina project with annual capacity 800,000 tons.

    Two billion yuan will be reserved for its expansionary project, which may add 700,000 tons of annual alumina capacity to the company.

    The remaining two billion yuan will be used to improve the company's financial standing and optimize its financing mix.

    (Source: chinamining.org)