SHANGHAI — Shares of Aluminum Corp of China （Chalco） soared Tuesday after its parent company pledged to invest at least 10 billion yuan （1.5 billion dollar） in a rare earth producer in eastern China.
Chalco's Shanghai-listed shares closed up by the daily 10 percent limit at 10.88 yuan while its Hong Kong-listed shares ended up 4.13 percent at 7.31 Hong Kong dollars （94 US cents）.
Its state-owned parent Chinalco, which is seeking to diversify from aluminium to become a global mining firm, said in a statement Monday it would take a controlling stake in Jiangxi Rare Earth and Rare Metals Tungsten Group.
Chinalco, the country's biggest aluminium producer, will invest at least 10 billion yuan in the Jiangxi firm over the next three to five years to accelerate the development of rare earth resources, the statement said.
China supplies at least 95 percent of the world's rare earths, which are essential for making components used in a variety of products including iPods, electric cars and guided missiles.
The investment comes after Japanese traders accused China of blocking exports of the minerals to Japan, which Beijing has repeatedly denied, amid the worst diplomatic row between the two Asian powers in years.
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