Chalco proposes merger of Inner Mongolia Huayun into Baotou Aluminum

Aluminum Corporation of China (Chalco) [HKEX:2600] has announced a proposed merger of its non-wholly owned subsidiary, Inner Mongolia Huayun New Materials, into its wholly-owned subsidiary, Baotou Aluminum. The transaction, subject to independent shareholder approval at a second extraordinary general meeting (EGM) scheduled for April 24, 2025, aims to streamline operations and enhance competitiveness. If approved, Baotou Aluminum will continue as the surviving entity, with Chalco holding approximately 65.58% and Chinalco holding approximately 34.42% stake in the combined entity. The company also announced that a joint venture will be formed with China Copper Tibet and Tibet Development and Investment to construct and operate the source, network, loading and storage integrated power supply project for the Jinlong Copper Mine in Tibet. Chalco’s subsidiary, Ningxia Energy, will make a capital contribution of approximately RMB113,925,830 to hold a 23.90% equity interest in the joint venture. China Copper Tibet and Tibet Development and Investment will contribute RMB267,415,860 and RMB95,335,420 respectively. The company sees such deals as a way to improve company profitability and grow existing markets.