Chinalco pursues a global expansion strategy through partnering and investing in the development of overseas metals projects in regions rich in natural resources and with secure and ample energy supplies.
Some of its major recent overseas investments and potential projects include:
- the acquisition of Peru Copper Inc
- the acquisition by Chalco (Chinalco's subsidiary) of the bauxite exploration licence to study the development of the Aurukun mine and associated alumina refinery in Australia
- an anticipated joint-venture to build an aluminum plant with an annual capacity of 1million tonnes in Saudi Arabia.
Chinalco believes that these investments establish Chinalco as a leading Chinese company in development of mineral resources outside China.
In February 2008, Chinalco, in partnership with Alcoa, purchased a stake of approximately 12% in Rio Tinto plc, the UK listed arm of the Rio Tinto group (the world’s third largest mining company) for a total consideration of approximately US$14 billion. To date this is the largest overseas investment that has been made by a Chinese company. The strategy for this acquisition was threefold:
- Chinalco is confident in the long-term prospects of the mining cycle. This transaction increased and diversified the range of Chinalco’s exposure to the resources sector.
- Rio Tinto is a well managed company that is well placed to prosper throughout the mining cycle – Chinalco expects to earn an appropriate financial return over the long term.
- Chinalco is better positioned to participate in the reshaping of the industry landscape.
