* A share issue proceeds to fund Xing Xian project

* New A shares to be issued to not more than 10 investors

(Adds details and share prices)

HONG KONG, Jan 30 (Reuters) – Aluminum Corporation of China
Ltd (Chalco) (2600.HK: Quote), the country’s largest producer of the
light weight metal, said it plans to raise up to 9 billion yuan
($1.37 billion) from a private placement of new shares to be
listed in Shanghai.

Chalco said in a filing on Sunday that the proceeds from new
A-shares (601600.SS: Quote) will be used to fund the Xing Xian alumina
project and other purposes.

The company said it will apply to the China Securities
Regulatory Commission for the issue of the new shares, which will
represent about 6.88 percent of the total issued share capital as
enlarged by the A share issue.

The share sale is also subject to shareholder approvals, it
added.

Chalco’s Shanghai-listed A shares closed down 0.95 percent to
10.44 yuan on Friday and its Hong Kong traded H shares fell 1.2
percent to HK$7.68.

The company said it’s proposing that shares will be issued to
no more than ten investors, mainly institutional investors.

Chalco said earlier this month that it expected to turn a net
profit for 2010 after recording a net loss of 4.646 billion yuan
($690 million) in 2009 on an increase of sales volume and prices
of aluminium. [ID:nHKV002632]
($1=6.581 Yuan)
(Reporting by Alison Leung; Editing by Michael Flaherty)

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