Chalco or Aluminum Corp of China Limited will sell its 135,000mt annual aluminum smelting capacity quota to Chinalco-owned Yunnan Aluminium for a bid of CNY538.65mn ($80.64mn), excluding tax, the company said in a filing.
The capacity quota was auctioned after the company shut down operations at its Shandong Huayu smelting unit early last year due to high operational costs.
It is the second time in two years that Chalco has transferred a capacity quota to Yunnan Aluminium. In 2019, the company had sold its 170,000mt quota after shutting down its Shanxi Huasheng subsidiary.
Capacity quota transfers are allowed in China as long as the companies stay within overall quota limits. To control emissions, the country is seeking to cap annual overall smelting capacity to 45mn mt.