Chinalco to take controlling stake in JXTC
Shanghai. March 15. INTERFAX-CHINA - The Aluminum Corporation of China (Chinalco), the country's largest aluminum smelter, is expected to take a controlling stake in Jiangxi Rare Earth and Rare Metals Tungsten Group Co. Ltd. (JXTC), a Jiangxi Province-based tungsten and rare earth producer, JXTC announced on March 14.
Chinalco has signed a strategic cooperation agreement with the Jiangxi provincial government to develop rare earth resources in the province, which requires it to take control of JXTC, according to the announcement.
Under the agreement, Chinalco may take control of JXTC by expanding its registered capital, investing directly in projects, or buying the stake outright. Chinalco also agreed to help JXTC list on the domestic stock market.
For its part, the Jiangxi government agreed to help Chinalco consolidate major nonferrous producers in the province.
JXTC is one of the world's largest tungsten and rare metals mining and processing companies. It aims to generate RMB 10 billion ($1.47 billion) in sales revenue in 2010.
-LCL