Chalco to divest shares in Guinea venture with Rio Tinto
Hong Kong bourse listed Aluminum Corporation of China Ltd, the largest producer of the metal in China, had laid out lans to sell its shareholdings in Guinean venture to a subsidiary of its parent firm. The said shareholdings sale is worth about USD2.07 billion.
The company, known as Chalco, is backed by state funds and announced last September 20 the sale of the 65% shareholdings to its parent. The venture is one of the main investors in the Simandou iron-ore project. There was no information provided on the value of the shareholdings to be transferred.
In regulatory documentation filed by Chalco in both Shanghai and Hong Kong stock exchanges, the appraisal value of the asset was around USD2.07 billion. Accordingly, the transaction value of the said assets would go no lower than the indicated amount.
Back in 2010, Chalco had purchased the stake from Rio Tinto for the sum of USD1.35 billion. This gave the Chinese state funded corporation 44.65% in the Simandou mine. The company then consolidated its shareholdings through a venture with other Chinese companies.
The said mine would be starting by 2018 according to the main shareholder in the venture, the Rio Tinto Group.