The money will be used by Chalco subsidiary Xinjiang Aluminum & Power Corp, which was set up in the northwest province in August last year. Jiaozuo will invest RMB1.014bn ($160.4M) and Chalco RMB1.884bn ($285.8M) holding 35% and 65% respectively.

Xinjiang Aluminum & Power Corp is engaged in the production of bauxite, minerals, metallurgical products, carbon products and is involved in the power generation businesses.

The capital injection will boost Chalco Xinjiang's registered capital to about RMB2.9bn ($460.5M).

The proposed project will help ported to be able to help Jiaozuo Aluminum improve its profitability as energy costs are high. Shanshan County is abundant with coal resources and has one of the largest open-pit coal fields in Xinjiang.