Chalco today further signalled its shift away from primary aluminium, by signing an agreement with Rio Tinto for the Simandou Iron Ore Project in Guinea, Africa.
Many business journals are running today’s story about the deal which was inked today. Few if any of those journals seem to be watching Chalco’s gradual metamorphasis into a multi-metals company.
Chalco now seems more interested in copper and iron ore than aluminium, prompting the less-respectful side of me to suggest a new name that squeezes their other two metals in.
True, Chalco has new smelters in construction in far western China, but with metal selling below cost, power prices likely to rise, and no light at the end of the tunnel, perhaps it’s not surprising that they have been moving downstream, upstream and into entirely different streams.
PS – Chaliocco = China Aluminium Iron Ore and Copper Company