Chairman, General Manager Mr Xiong said in Shanghai, China Aluminum Corporation and Rio Tinto Ltd. (RioTintoPLC, RTP) Cooperation Development of 13.5 billion dollars in Guinea, West Mount Du (Simandou) good prospects for iron ore project, but the political instability in Guinea, West Africa and the iron ore that had not yet determined, the current feasibility study still needs time to investigate, so there is still uncertainty.

Held yesterday in Shanghai, a subsidiary of Aluminum - Aluminum Corporation of China Ltd. (601600. SH; 02600. HK, referred to as: Aluminum Corporation of China) in 2009 earnings call, Mr Xiong did not disclose the possible time to complete research report, only saying the two sides need and Rio Tinto can only be determined after the completion of due diligence. Mr Xiong also served as chairman of China Aluminum CEO. Mr Xiong also said that the future will consider the establishment of large-scale overseas alumina and aluminum plants.

Measured by production, Chalco is China's largest aluminum producer.
Mongolian copper and gold mine in the aluminum target
3 19, the aluminum company Rio Tinto announced the signing of a non-binding MOU, both parties will jointly develop Rio Tinto held in West Africa, Guinea, West Mount Du world-class iron ore project. This is the last 6 months

aluminum company Rio Tinto plans to invest 19.5 billion after failing to repair relations between the two companies were the first important cooperation.

According to the MOU, the aluminum company invested 1.35 billion U.S. dollars capital with Rio Tinto by 47%: 53% joint venture equity ratio, Du projects jointly hold 95% of the West Mountain stock. By then, the aluminum company has a real interest in the West Mount Du project was 44.65 percent, Rio Tinto has a real interest to 50.35%. Aluminum Corporation and Rio Tinto joint venture's board of directors to appoint their three directors, Rio Tinto is responsible for project operation, the aluminum company took part in Management .

Mountain West iron ore project in West Africa, Guinea, Elsie, to open the world-class quality hematite. According to data published by Rio Tinto, currently control more than 2.25 billion tons of iron ore reserves, total inferred resource may be as high as 50 billion tons have been ranging exploration of the ore grade of 66% ~ 67%. The first phase is put into production is expected to iron ore production capacity of not less than 70 million tons / year, the two sides will set up joint venture Sell The company will sell iron ore products targeted the Chinese market.

In the development of the project, while the West Mount Du, Mr Xiong said aluminum company Rio Tinto is also closely controlled Mengguaoyou Tolgoi copper-gold project. The project known as the world's largest untapped copper and gold, from the Sino-Mongolian border is only 200 km.

The domestic front, China Aluminum prepared to not more than 10 million shares issued A shares, and fund-raising not more than 100 million for 800,000 tons of aluminum company alumina project in Chongqing, in order to further improve the company "bauxite Ore - aluminum - aluminum - aluminum deep processing "chain.

Huge loss of 4.646 billion last year
It is noteworthy that generous to open up overseas, China's Chalco net loss 4.646 billion yuan in 2009, the highest since its listing of the worst records.

"Last year was the most difficult year for China's aluminum, it is probably the worst performance of the year." Mr Xiong yesterday to judge this performance.

Aluminum industry will face this year, although some excess pressure, but Mr Xiong China's aluminum industry's future: "At present, China's per capita consumption of 10.6 kilograms of aluminum, while the developed countries is 30 kg."

According to Mr Xiong said, due to economic recovery, boost market demand for aluminum, in August last year, the company gradually losses, from January to February this year has been profitable. Aluminum is widely used in real estate and Car Industry. To benefit from these two industries as well as global commodity prices continue to rise, Mr Xiong estimated the company's sales revenue in 2010 will increase significantly, while revenue will improve.

Mr Xiong said, the global aluminum prices in the 2000-2400 U.S. dollars / ton, the domestic aluminum prices in the 15,500 to 18,000 yuan / ton. Chinese ports this year, the average price of imported alumina may be between USD 330-400 per tonne, while the domestic spot prices could average RMB 2600-3200 yuan per ton between.

Mr Xiong also said that aluminum prices will shock up in 2010, the company will optimize existing assets, rationalization of the industrial distribution and product structure adjustment, the purchase of electricity through the development of direct means of reducing costs. Mr Xiong said Chalco would continue to try to acquire and develop bauxite resources at home and abroad, strive for the company's 10% lower and lower mining costs. And "Chalco will be given to overseas construction of large alumina plant."

Energy , China Aluminum is Gansu, Yunnan and other localities, the rich want to use both coal and hydropower resources, hydropower, respectively aluminum and aluminum to build coal-integrated industrial chain. In addition, the Chinese aluminum company joined hands in the offshore and Malaysia, the country plans to build a water rich region a total investment of 1 billion U.S. dollars, an annual capacity of 330,000 tons of electrolytic aluminum plant.

Executives take a pay cut from 20 to 30%
Media reports yesterday said that Chalco net loss of 4.646 billion yuan in 2009, but its main executive pay did not fall but rise. However, the aluminum company's vice president Lv Youqing clarification immediately, said company executives performance-related pay and, last year's loss will have a direct impact on executives collectively take a pay cut ranging from 20 to 30 percent.

Lv Youqing said in an interview, Chalco 2009 annual report disclosure of company directors, supervisors and senior management salaries and bonuses of situation, the board and shareholders early last year, the program adopted by the General Assembly program. Face Financial Crisis, and companies with losses, Mr Xiong in February 2009 after the arrival, that is fully suspended, including Chalco, including performance pay for all executives.

Lv Youqing said that according to the principle of linking pay with performance, this year on March 11, China Aluminum AG Executive Board adopted the cash executive compensation program in 2009, further defined the ratio of a pay cut were: Company Director Long, CEO take a pay cut 30%, the company president, a pay cut of 25%, Vice President, Chief Financial Officer, secretaries to directorate take a pay cut of 20%.

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