Aluminum price soars as China cancels tax incentive on exports
The export tax rebate was also removed for copper and lowered for some refined oil, solar, battery and non-metallic mineral products.
Aluminum Corp of China Ltd, also known as Chalco, said late Tuesday it would make a capital contribution of 352.85 million yuan ($49.75 million) to China Rare Earth, a subsidiary of its parent Chinalco, by injecting its gallium assets.
Chalco’s stake in China Rare Earth would increase to 23.94% from 14.62% through the capital contribution, the company said in a filing to the Hong Kong stock exchange.
Chalco boosted the production of gallium, a minor metal used in semiconductors by the electronics and telecom industries, by 89% year-on-year to 136 tonnes in 2018, according to its annual report.
The company produces gallium as a byproduct of alumina, the substance used to make aluminium, in Henan, Shanxi, Guangxi and Guizhou, according to its website.
“The transaction is conducive to the company’s revitalisation of assets irrelevant to the principal businesses and increase of investment returns,” Chalco said.
($1 = 7.0928 Chinese yuan)
(By Tom Daly; Editing by Sherry Jacob-Phillips)
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