Chalco plans $1.4b Shanghai share placement

Aluminum Corporation of China, or Chalco (ACH.NYSE, 601600.SH, 2600.HK), plans to raise up to US$1.37 billion through a private placement of new shares to be listed in Shanghai, Reuters reported. According to an exchange filing, Chalco will use proceeds from the placement of A-shares to fund several ventures, including its Xing Xian alumina project. The share placement is still pending regulatory and shareholder approval. Earlier this month the company said it will increase bond sales to finance expansion plans, doubling its short- and medium-term debt to US$7.1 billion by June 2012. Chalco expects to report a net profit for full-year 2010 against a net loss of US$690 million in 2009.