Aluminum Corporation of China Limited (Chalco, 601600.SH/2600.HK) announced the signing of a capital contribution agreement on October 24, 2025, with Aluminum Corporation of China (Chinalco), Yunnan Copper (000878.SZ), Chihong Zinc & Germanium (600497.SH), and Chinalco Capital to establish a joint venture. According to the announcement, the new entity will have a registered capital of RMB1.5 billion. Chinalco will hold 25%, while Chalco, Yunnan Copper, and Chihong Zinc & Germanium will each hold 20%, and Chinalco Capital will hold 15%.

The announcement indicates that Chalco plans to contribute part of its high-purity gallium production line’s appraised value plus a cash component as its share of the registered capital. Chihong Zinc & Germanium will transfer its entire equity stake in Chihong Germanium as well as cash for its portion. Other participants will make their respective contributions in cash.

The newly formed joint venture is expected to focus on extending the rare metal industrial chain. It will not become a subsidiary of Chalco, so its financial results will not be consolidated into Chalco’s accounts. However, it will be consolidated into Chinalco’s accounts. The announcement underscores the potential for leveraging resource integration and enhancing operational synergies in rare metal functional materials, with each party aiming to expand in high-end downstream industries.

The transaction is classified as a connected transaction under Hong Kong Listing Rules. It triggers reporting and announcement requirements but is exempted from independent shareholders’ approval. The board resolution was passed with certain directors abstaining due to concurrent positions held in Chinalco, and no further shareholder vote is required. Chalco stated that upon completion of the asset appraisal, additional disclosures will be made regarding the final valuation amount and use of proceeds from the relevant asset transfers.