China Aluminium Corp. (Chalco), China's largest aluminium maker, is to issue RMB-denominated shares in early April after posting a 67-percent rise in 2006 earnings.

 

Xiao Yaqing, chairman and CEO of Chalco, said shareholders had agreed on listing on the domestic stock market after announcements that the country's two exchanges had raised 76.1 billion yuan (US$9.88 billion) in capital in the first two months of 2007, or 26.86 percent of the total financing in 2006.

 

The company plans to issue 1.24 billion shares to raise 8.2 billion yuan (US$1.06 billion) to buy out two domestically-listed companies, Shandong Aluminum and Lanzhou Aluminum, according to earlier reports.

 

Preparations were well underway and the company would issue bonus stocks for late 2006 after it completed mergers with the two companies through share-swapping operations, said Xiao.

 

The bonus stocks available are valued at 1.48 billion yuan (US$192 million).

 

Chalco, the world's second largest aluminium maker, reported a net profit of 11.74 billion yuan (US$1.52 billion) last year despite sliding prices for its main product in the second half of last year.

 

The company has beefed up acquisitions overseas and merged with aluminium makers at home in the hope of boosting production, especially in aluminium, to help mitigate the impact of lower prices.

 

The company got listed on New York Stock Exchange and Hong Kong Stock Exchange in 2001.

 

(Xinhua News Agency March 14, 2007)