Aluminum Corporation of China will strictly control project investments and be prudent on acquisitions amid a slump in metal prices.

Mr Xiong Weiping GM of Chinalco said that the company should get well prepared to counter tough challenges and ensure its financial safety amid market volatilities.

The LME Index of six base metals traded in London has dropped 24% from a February high on concerns the European debt crisis and a slowdown in the US economy may curb demand for commodities.

Mr Xiong in March boosted the company’s annual spending 54% to CNY 22.5 billion to diversify into coal and bauxite from low margin aluminum production.

He said that we should stick with the principles that cash is king and investment return is the priority. The company will continue with its strategic transformation.

(Sourced from www.worldal.com)