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Aluminum Corp of China to acquire Mongolian copper mines |
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Wednesday, 05 September 2007 |
Aluminum Corp of China (Chinalco)
will begin actively seeking copper deposits in Mongolia as they seek
to diversify their metal businesses.
Chinalco is currently China’s
largest aluminum producer. However, officials have said they would seek
to expand their business into copper metals, as well.
"Metal companies that
depend on a single metal cannot secure a sustainable competitive advantage,"
Lu Yongqing, the company's vice-president said on Friday.
Chinalco has set aside nearly
$4 billion to expand into copper mining in Mongolia, as well as other
nations.
While copper only accounts
for less than ten percent of Chinalco’s current business, their aggressive
acquisitions now make them the largest holder of copper reserves in
China.
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