Chalco says listing is about strategy not fund-raising

Aluminum Corp of China (Chalco) announced Saturday that it is not planning to use its listing on the Shanghai stock market to raise funds in the near future, Reuters reported. Chalco is due to list its A-shares Monday through the buyout of two listed units, smelter Lanzhou Aluminum and alumina maker Shandong Aluminum Industry. The share offering is worth more than US$1 billion. Company chairman Xiao Yaqing said the buyout and listing were purely strategic moves. "This A-share listing is basically the result of state share reform, and not to raise funds," he said. "We have ample cash on hand. The listing is simply to create a platform for us." Xiao added that demand for alumina was growing rapidly in China and resources were scarce, but Chinese government policies to conserve energy and reducee emissions of polluting gasses would increase production costs for the industry.