<a href=Alcoa Aluminum Smelter” height=”195″ src=”https://www.mining-technology.com/wp-content/uploads/static-progressive/nri/mining/news/portland_lAlcoa.jpg” style=”padding: 10px” width=”250″ />

Hong Kong-based CITIC Resources Holdings plans to acquire a 13% interest in Australia-based Alumina for A$271m.

Following the closure of the transaction, CITIC will hold a 5.2% stake in Alumnia, while its subsidiary CITC Resources Australia will hold a 7.8% interest.

The offer price of A$1.2 per share represents a 2.9% premium on Alumina’s closing price on the Australian Stock Exchange, on the last ASX trading day.

CITIC Group chairman and CEO Zeng Chen said that given the company’s standing as a diversified energy and natural resources investment company, the investment in Alumina expands its foothold in the aluminium sector.

"The subscription provides us with the opportunity to invest in one of Australia’s leading companies with a world-class global portfolio of upstream mining and refining operations in the aluminium sector.

"We are also very pleased to note that CITIC Group has also agreed to invest in Alumina, which demonstrates strong support to the company’s investment and affirmation of our strategy from our largest shareholder," Chen said.

The news comes as demand for aluminum is beginning to improve, following a steep price decline in 2012.

The price of Aluminum rose by 3.6% in the last three months to $2,148 a metric ton, up from $2,052 a ton in 2012.

Alumina owns a 40% stake in the Alcoa World Alumina and Chemicals venture in partnership with major alumina producer Alcoa.

Image: Alcoa’s aluminum smelter in Portland, Australia. Photo: Alcoa Inc.

NRI Energy Technology