[miningmx.com] — Chinalco, China’s largest alumina producer, plans to become one of the world’s top five miners in the next decade, in part through the lucrative rare earths sector, state media said on Thursday.
The state-owned company announced the goal as it reported an operating profit of 2.7 billion yuan ($410m) in 2010 thanks to higher metal prices, reversing a loss the previous year, the China Daily reported.
Revenue soared 40 percent year-on-year in 2010 to 200 billion yuan, it said.
Chinalco said previously it was seeking to diversify from aluminium into other sectors such as coal, iron ore, rare earths and copper to become a global mining firm.
In December, Chinalco and Anglo-Australian miner Rio Tinto signed a memorandum of understanding to set up a joint venture to explore for resources such as copper and coal in China.
That followed the signing of a binding agreement between Chinalco’s listed unit Chalco and Rio Tinto in July to jointly develop a huge African iron ore field, with the Chinese company to invest $1.35bn in the project.
“Apart from our main business sectors, including aluminium and copper, Chinalco also aims to top the domestic rare earths sector in three or five of the elements,” company spokesperson Yuan Li was quoted as saying.
China produces more than 95% of the world’s rare earths -17 elements vital to everything from iPods to wind turbines.
Chinalco last month signed a memorandum of understanding with Guangxi Nonferrous Metals Group to develop rare earths in the southern region of Guangxi.
That followed a pledge in September to invest at least 10 billion yuan for a controlling stake in Jiangxi Rare Earth and Rare Metals Tungsten Group in eastern China.
Yuan said Chinalco was also in talks with miners in the southern province of Guangdong about potential cooperation.
