Aluminum Corp of China (Chinalco) and a listed unit had no immediate plans to raise money to help fund their overseas acquisitions, the company's top executive said.
The world's third-largest alumina producer would continue to seek overseas acquisitions as part of its strategy to transform into a global mining firm, Chinalco president Xiao Yaqing said yesterday at China's annual legislative session in Beijing.
Mr Xiao rejected market concerns that Chinalco, which earlier this year led a US$14 billion acquisition of 12 per cent of Rio Tinto, may raise funds through its Hong Kong and Shanghai-listed flagship, Chalco, to help fund overseas expansion.
He said Chinalco and Chalco were financially healthy and that he did not see any need for the group to raise funds through Chalco in the near term.
'Chinalco has 200 billion yuan of assets and our gearing is only about 40 per cent,' Mr Xiao said.
Taking a stake in Rio Tinto, the world's No3 mining company, was the largest overseas acquisition by a mainland firm and a groundbreaking deal in top-tier overseas mergers and acquisitions for Chinalco, he said. But it will not be the last one.
Regarding market speculation over whether Chinalco might buy a larger stake in Rio Tinto or even enter a bidding war against BHP Billiton, Mr Xiao only said the next move would depend on circumstances.