China's Top Aluminium Firm Sees 2008 Revenues Fall - Reports

Aluminum Corp of China (Chinalco), the country's top producer of the metal and the world's third-largest alumina producer, saw revenues decline 4.3 percent in 2008 due to low prices, state media said on Monday.

Revenue fell to 126 billion yuan ($18.43 billion) in 2008 versus 131.7 billion yuan in the previous year, though the value of Chinalco's assets surged 46 percent to 259.5 billion yuan last year, according to the media reports citing spokesman Lu Youqing.

State-owned Chinalco is the biggest single shareholder in global miner Rio Tinto (RIO.AX)(RIO.L) after it and U.S. aluminium maker Alcoa (AA.N) paid $14 billion for a 12 percent stake in Rio's London-traded shares last year.

The group, the parent of Hong Kong and Shanghai-listed Aluminum Corp of China Ltd (Chalco) (2600.HK)(601600.SS), produced 10.1 million tonnes of alumina, 3.4 million tonnes of primary aluminium and alloy, and 930,000 tonnes of aluminium products in 2008, the media reports said, without providing comparative figures.

It also produced 390,000 tonnes of refined copper, 150,000 tonnes of copper products and 4,450 tonnes of titanium sponge last year.

Chinalco's aluminium and alumina production is mostly operated by Chalco and copper production by Yunnan Copper.

Chalco has said it would crank out 6.6 percent more alumina, the main material for aluminium production, to reach production of 10.2 million tonnes and to raise output of aluminium by 29 percent to 3.62 million tonnes in 2008.

Chalco cut its spot alumina prices by 23 percent in the beginning of this year, after reducing the prices by 38 percent last year on weaker demand.