by TIAN Heqi

Aluminum Corporation of China Limited (Chalco), the listed arm of state-owned Aluminum Corporation of China, said on Jan. 30 it will jointly acquire a controlling stake in a Brazilian low-carbon aluminium producer with Rio Tinto.

In a stock exchange filing, Chalco said its wholly owned unit Chalco Hong Kong will set up a joint venture in Brazil with a subsidiary of Rio Tinto to acquire 68.596% of Aluminium Brazil from Votorantim.

Under the deal, Chalco Hong Kong's subsidiary will hold 67% of the joint venture, while Rio Tinto will own the remaining 33%.

The acquisition will be an all-cash transaction priced at 10.5 Brazilian reais per share, representing a 21.2% premium to the 20-day volume-weighted average price prior to the signing of the agreement.

Based on that valuation, the transaction values the target at about 4.689 billion reais (US$900 million). Chalco will pay around $600 million, while Rio Tinto will contribute about $300 million. Upon completion, Aluminium Brazil will become a consolidated subsidiary of Chalco.

Founded in 1941, Aluminium Brazil is one of the country's oldest aluminum producers. Listed in 2021, it is Brazil's only fully integrated aluminium group, spanning bauxite mining, alumina refining, primary aluminium smelting, downstream processing and captive power generation.

The company's primary aluminium output accounts for more than one-third of Brazil's domestic market. It also controls or holds stakes in 21 hydropower plants and four wind farms, with aluminium production powered entirely by renewable energy.

Aluminium prices have strengthened since the start of 2025. On Jan. 29, three-month aluminium on the London Metal Exchange briefly rose above $3,300 a tonne, the highest level since April 2022. Several investment banks have raised their near-term price forecasts, citing supply constraints and rising demand from energy transition and manufacturing sectors.

The deal comes amid heightened deal activity across the aluminium sector as producers respond to tighter global supply conditions.