Chalco to buy Ivanhoe's SouthGobi stake in $926 million deal | Reuters: "(Reuters) - Chinese aluminum giant Chalco stepped up its diversification on Monday, agreeing to pay $926 million for a controlling stake in Mongolian coal miner SouthGobi Resources in a deal with mining billionaire Robert Friedland's Ivanhoe Resources.
The deal marks the first foray into coal by state-run Aluminium Corp of China Ltd, known as Chalco, (601600.SS) (2600.HK), which is facing a bleak outlook in aluminium, and will give it access to a large coal producer in neighboring Mongolia.
Ivanhoe (IVN.TO) said a sell-down would free up capital that could be invested in the $6 billion Oyu Tolgoi mine in Mongolia, one of the world's largest copper and gold projects.
Analysts said the deal had the potential to boost Chalco's earnings, but cautioned that the Chinese aluminium producer was moving into a new industry in a different country."
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