Chinalco's emergency suspension or takeover of major shareholder iron ore project

This Monday, the Chinese aluminum industry (601600, the former closing price of 10.21 Yuan) before the stock market, the original Rio Tinto and Chinalco China Aluminum Company to develop the Guinea-Simao du Iron, the case will be replaced by Rio Tinto and China Aluminum industry jointly developed rumors spread.　　Some analysts said that the possibility of signing by listed companies is not ruled out.　　As of yesterday (July 28), the Chinalco announcement said it was discussing major issues and was due to suspend trading in order to avoid abnormal stock price fluctuations, which is expected to be a duplicate on July 30.　　Or working with Rio Tinto to develop iron ore as early as March 19 this year, Chinalco and Rio Tinto to jointly develop Rio Tinto Holdings of Guinea's world-class iron ore project, the news spread, sparking the Chinalco A-share trading, but Chinalco and Rio Tinto MOU signed memorandum of Understanding on the impact of China's aluminum industry is not big.　　In Monday, the price of aluminum shares in China, the market rumors, the original Rio Tinto and China aluminum companies jointly developed Guinea Simao du-Fu, and the Rio Tinto and the Chinese aluminum industry jointly developed.　　Letter of credit Analysis Shi Hengqun pointed out that and, do not exclude the possibility of contracting by the listed company level, mainly and because of investment in the project, the upfront need to invest tens of billions of dollars, to be signed by listed companies, in stimulating the company's share price, but also from the two-tier market financing.　　A signing ceremony will be held today in the Great Hall of the people, according to a private equity official. Short-term performance impact not small industry insiders point out that, just this month, Chinalco in its own main business, the increase in mineral resources mining, is to work with Rio Tinto Development Guinea Simao du iron.　　But at present, whether it is listed companies or large shareholder level of operation, the company's performance in the short term has little impact. Guotai analyst Sanyongliang points out that in terms of profits, Simao is in a rough forest 750 kilometers from the coastline.　　The location of iron ore is lack of water and electricity required for large-scale iron ore production; there are few people living and commercial facilities needed by the workers, and there is no road port for the smooth transportation of iron ore. At the beginning of 2010, according to Rio Tinto's budget, the construction of iron ore itself will require 6 billion of dollars, a variety of ancillary facilities also need 6 billion U.S. dollars, which is beyond Rio Tinto, the urgent need for Chinalco to help invest money. From the assets point of view, Simao du is a high-quality iron ore, has been proven and can be inferred iron ore reserves of 2.25 billion tons, the total reserves may reach 5 billion tons, has been proved ore grade 66%~67%.　　According to the Chinalco and Rio Tinto agreements, the annual output of the project is no less than 70 million tonnes after the initial production. Sanyongliang pointed out that, in the next 2 years ~3 year, the Simao du Fu Iron will not bring profits to Chinalco, on the contrary, may also need to invest a lot of capital. But given the quality of the iron ore, Chinalco will take a solid step in the transition from aluminum to a comprehensive mining company, which will still push up the price.