Fri, Oct. 16, 3:52 PM
- Chinalco (ACH -0.8%) plans to shut down its biggest aluminum smelter, which accounts for about an eighth of its total capacity of more than 4M metric tons, because of low prices, Reuters reports.
- The Liancheng smelter in Gansu province was Chinalco's worst performing smelter, recording losses of 1.99B yuan ($313M) since 2011 due to high production costs and weak aluminum prices, and the company has been unable to turn it around, according to the report that cited a VP.
- The planned shutdown still could face opposition from the local government and its electricity supplier.
Fri, Aug. 28, 10:32 AM
- China is trying to push its two biggest aluminum businesses together as part of a planned shake-up of state-owned enterprises, a move that would create the world's largest aluminum maker, Reuters reports.
- Power company State Power Investment is in talks to spin off its aluminum assets to Chinalco (ACH -0.7%), according to the report.
- SPI, which inherited the loss-making aluminum assets when it was formed from the merger of two state-owned enterprises in June, is said to be eager to abandon the sector, which is suffering from a supply glut.
Wed, Jul. 8, 10:40 AM
- Alcoa (AA -4%) tumbles near 52-week lows, with the company set to report quarterly earnings after today's closing bell.
- BMO analysts aren't getting their hopes up for today's release, saying Alcoa is in "the beginning of one of the weakest pricing environments in years" because of the lags associated with LME aluminum, regional premiums and alumina prices, which suggests the continued sharp decline in each during recent months will hurt Q2 and Q3 results.
- Other aluminum producers also are lower, as commodities are thrashed today: ACH -10.4%, CSTM -2.2%, CENX -1.5%, KALU -0.1%.
- Alcoa Q2 earnings previews: I, II
Mon, Jun. 8, 2:19 PM
- Synthesis Energy Systems (SYMX +9.9%) rallies after saying earlier that it has commissioned the first of three planned syngas plants in China's Zibo City.
- The plant uses two SES gasification technology systems supplied by Tianwo-SES and is scheduled to enter commercial operation later this year by its owner, Aluminum Corp. of China (NYSE:ACH); the other two plants in Shanxi and Henan provinces are under construction.
Thu, May 28, 10:09 AM
- Century Aluminum (CENX -9.1%) opens sharply lower after J.P. Morgan's Michael Gambardella slashes his estimates for the company well below Wall Street consensus.
- The analyst reiterates his Underweight rating and cuts his stock price target to $5, as he forecasts a $0.27 loss for CENX's FY 2015 vs. the Street's $1.52 in earnings, citing a weak aluminum pricing environment.
- Also: AA -0.7%, ACH -5.3%, RS -1.2%, NOR -3.4%, CSTM -2.7%, KALU -0.1%.
Thu, May 14, 12:12 PM
- China Aluminum (ACH +10.3%) is sharply higher as China’s government approves plans to merge the rare earth mineral operations of ACH and five other state-owned metal producers.
- It is not yet clear how closely the merged group would coordinate their far-flung operations or whether the merger would take on an independent corporate identity.
Mon, Jan. 26, 11:49 AM
- J.P. Morgan cuts its 2015 aluminum and copper forecasts by ~10%, seeing rising production in China this year while demand remains lukewarm, and downgrades Chalco (ACH -1.7%) to Sell from Neutral.
- ACH has been one of the best performing stocks in China’s metals sector, but JPM says the underlying issue remains the company’s high-cost, loss-making assets within an oversupplied aluminum sector.
- With ACH's high debt and negative free cash flow, the firm also believes the likelihood of an equity raising has increased.
- Copper prices are bumping along at five-year lows, reflecting a worsening outlook for the global economy.
- ETFs: JJC, CPER, CUPM
Dec. 10, 2014, 10:21 AM
- Synthesis Energy Systems (SYMX +17.4%) says it has secured $105M to help build three plants in China that turn coal into synthetic gas.
- The company’s Chinese joint venture partner will build the plants using SYMX technology and expertise; SYMX already has contributed to two plants in China.
- The three plants, located in Shandong, Henan and Shanxi provinces south of Beijing, will supply gas to aluminum smelters belonging to Chalco (NYSE:ACH), China’s biggest aluminum producer.
Oct. 6, 2014, 7:17 PM
- Rio Tinto (NYSE:RIO) says it rejected an informal approach from Glencore (OTCPK:GLCNF, OTCPK:GLNCY) about a potential merger in August and has had no further contact.
- Rio rose 9.1% in the session after a Bloomberg report around midday said Glencore had been laying the groundwork for a potential deal with Rio next year and has reached out to Rio’s biggest investor, Chinalco (NYSE:ACH), to gauge its interest in a deal.
- Clarkson Capital notes that while a strategic merger would make sense, it believes too many obstacles would need to be overcome for a deal to happen; also, Rio's ADR share price is down less than 10% YTD even as iron ore prices are down more than 40% (Briefing.com).
Oct. 6, 2014, 12:16 PM
- Rio Tinto (RIO +9.8%) skyrockets on a Bloomberg report that Glencore (OTCPK:GLCNF, OTCPK:GLNCY) is laying the groundwork for a potential merger with the company in the next year that would create the world’s largest mining company.
- Glencore is said to have has reached out in recent weeks to Chinese state-backed Chinalco (NYSE:ACH), which is Rio’s largest shareholder with a ~9.8% stake, to gauge its interest in a potential deal.
- However, no talks are yet underway between the two companies, no formal offer has been made, and none is likely before the end of 2014.
Sep. 16, 2014, 10:59 AM
- Aluminum Corp. of China (ACH -1.4%) vice chairman Sun Zhaoxue is being investigated for graft as China intensifies its corruption crackdown.
- Analysts believe the probe is linked to Sun’s long experience with China National Gold Corp. or in the aluminum industry in the eastern Shanxi province, but the impact on Chalco could be limited since he has been with the company only a few months.
- Sun resigned from his position and from the company's board; the head of Chalco's international trading unit resigned last November amid an investigation.
Sep. 3, 2014, 9:11 AM
May 27, 2014, 10:56 AM
- Rio Tinto (RIO -0.6%), Chinalco Mining (ACH -1.1%) and International Finance Corp. finalize a $20B deal to develop Guinea's Simandou project, which has been delayed for years but would be Africa's biggest iron ore and infrastructure project.
- As well as mining the iron ore, the three partners say they are working together to raise the funds to build a 650 km railway and a deepwater port to transport the rocks and minerals.
- RIO will take a 46.6% stake in the project, ACH 41.3%, Guinea 7.5% and IFC 4.6%.
Apr. 4, 2014, 3:33 PM
- Chinese-owned mining company Minera Chinalco (ACH +1.2%) says it received a go-ahead from Peru's government to partially restart operations at its Toromocho copper mine, which were halted last week due to environmental contamination.
- ACH opened the open-pit mine late last year, becoming the first mine in Latin America set up from scratch by a Chinese company; the mine's estimated production is 1M tons/year of copper concentrate.
Jan. 24, 2014, 2:58 PM
- The Rio Tinto-led (RIO -3%) group planning to mine iron ore from part of Guinea's Simandou mountain range will be expected to adhere to a "rigorous" schedule to ensure one of the world's largest mining projects finally comes to fruition after years of delay, the country's mining minister says.
- Guinea is negotiating a pact with Rio and its partners, which include a consortium led by Chalco (ACH) and the private-sector arm of the World Bank; the two sides have been locked over how the ~$20B project will be financed and executed.
Jan. 21, 2014, 10:35 AM
- Alcoa (AA +5.2%) continues its unlikely march higher, as J.P. Morgan predicts tightening aluminum markets and higher prices will boost earnings.
- "Given the pace and amount at which premiums have recently increased, it is clearly difficult to forecast for how long they will remain near current levels which we believe provide a significant amount of earnings support to [Alcoa]’s primary aluminum smelting operations," the firm writes.
- The firm upgrades AA shares to Overweight from Neutral with a $15 price target, up from $9, and raises Century Aluminum (CENX +5.3%) to Overweight from Underweight with a $13 target, up from $6.
- Also: AWC +5.5%, KALU +0.5%, ACH +0.2%, NOR +4.5%.
Aluminum Corporation of China Limited is engaged in manufacturing and distribution of alumina, primary aluminum and aluminum fabricated products. It also engaged in the development of bauxite related resources, the production, and fabrication.
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