Chinalco Again Sought Cooperation with Power Enterprise

On April 6th, Aluminum Corporation of China Limited signed a framework agreement for strategic cooperation with China Huaneng Group Corporation in Beijing. According to the agreement, both sides will carry out comprehensive cooperation in domestic and overseas power investment construction, development of mineral resources and aluminum-electricity joint operation.

This marks the second time that Chinalco signed cooperation agreement with a power group following its agreement with Three Gorges Group, in a bid to promote cooperation in aluminum-electricity joint operation, and power investment construction. Previously,Chinalco has signed framework agreement for strategic cooperation with Three Gorges Group on December 10th, 2010; both sides will carry out all-round cooperation in domestic and overseas hydraulic power energy investment construction, mineral resource development and other fields.

Aluminum-electricity joint operation is a method widely adopted by large aluminum enterprises today, it refers to the joint operation between aluminum plants and power plants,which can reduce power purchase cost. Because aluminum-electricity joint operation can bring tremendous economic benefits simultaneously to both the aluminum manufacturers and the power plants, it has been widely adopted both at home and abroad.