Aluminum Corporation of China Limited
(Stock Code: 2600)

Major Shareholder:

• CHINALCO ¡V 45.1% interest
• China Cinda - 15.6% interest

The Group is the dominant producer of alumina and primary aluminum in China. Our primary activities include refining bauxite into alumina and smelting alumina to produce primary aluminum. The Group is the only producer of alumina in China, and in 2000, the Group is the third largest alumina refiner in the world. We produced approximately 4.3 million tonnes of alumina products in 2000, supplying approximately 70% of all alumina products consumed in China.

The Group is also the largest primary aluminum total domestic producer in China. The Primary aluminum production of 669,800 tonnes accounted for approximately 23.7% of total domestic production in 2000. China's next largest domestic primary aluminum producer in 2000 produced approximately 4.2% of China's primary aluminum output.

The key operating assets include four integrated alumina and primary aluminum production plants, two alumina refineries, one primary aluminum smelter and one research institute. Most of our refineries are located close to abundant bauxite deposits. As at December 31, 2000 the refineries had annual production capacities ranging from 400,000 to 1.2 million tones. The three largest primary aluminum smelters, located in the provinces of Huizhou, Qinghai and Guangxi, had annual prediction capacity ranging from 130,000 to 235,000 tonnes.

According to the Brook Hunt, in 1998, 1999 and 2000, China was the second largest aluminum market in the world in terms of volume of primary aluminum consumption. The rapid growth in China's aluminum market as measured by consumption of primary aluminum from 1996 to 2000 has been in part driven by (1) the robust growth in China's GDP, which grew at a 7.9% compound annual growth rate during the same period and the (2) the significant growth in end-use industries such as construction, packaging, power, consumer products and transpiration. In addition, the rapid growth of China's aluminum market has caused the gap between the domestic demand and supply for both alumina ad primary aluminum to widen.

Upon China's accession to the WTO on December 11 2001, the Group expect a significant reduction in tariff rates for alumina and primary and thereafter a further gradual reduction in tariff rate for alumina. As a result, China's accession to the WTO may increase competition imported alumina and primary aluminum imported into China. However, the Group believes that the continued existence of tariff and non-tariff costs will continue to support the competitive market position against imports.

During the first six months of 2001, an excess global supply of alumina has resulted in lower alumina spot prices and has led to a significant increase in alumina imports into China in 2001, exerting pressures on the alumina sales and margins. The scale of operations and market share will allow us to take better advantage of the opportunities and meet the challenges by fully exploiting the local market position and improving the competitive advantages through cost reduction measures.

The Directors believe that the Group has the following competitive advantages:

• high consumption and growth potential of China's aluminum market;
• our dominant position in China's alumina market;
• our position as the leading primary aluminum producer in China;
• our local market advantage in China;
• our abundant and reliable bauxite supply and technologies and experience in refining China's Diaspora bauxite;
• our vertical integration that reduces the effects of industry cycles and lowers the working capital needs; and
• our management's extensive experience in managing aluminum operation.

• The limited operating history as an integrated aluminum company could affect the operating efficiency;
• The business and results of operations are susceptible to economic cyclically and volatility in commodity prices;
• China's accession to the WTO requires the PRC government to significantly reduce import tariffs for the products, which may result in increased competition;
• The major capital projects may not be completed, completed in the timeframe or cost levels originally anticipated, and may not achieve the intended economic results.
• The Group will be controlled by Chinalco whose interest may differ from those of the public shareholders.

Leveraging our scale and market position to capture the growth opportunities presented by China's aluminum market, particularly through;

• Expansion in alumina production capacity through technical upgrades and brownfield development;
• Expansion in primary aluminum production in regions with low electricity costs that are close to sources of alumina and markets for aluminum products; and
• Opportunities expansion into China's aluminum fabrication market.

Focusing on cost reduction and capturing the profit enhancement made available by the integration into a centrally managed company, including;

• Improving operating efficiency by; (1) reducing raw materials consumption per tonne of alumina and primary aluminum produced, (2)reducing fuel and power consumption in the alumina and primary aluminum productions, and (3) lowering maintenance expenses, and (4) realizing greater economies of scale; and
• Realizing cost savings through synergies created by (2) integration the sales and marketing operations, (2) establishing a unified national distribution system by consolidating existing regional offices, (3) centralizing raw material procurement and supply chain management, (4) streamlining management, and (5) seeking to lower electricity costs through various means.

Increasing return on capital through optimal allocation of capital and performance incentives;

• Consolidating major investment decisions and enforcing financial discipline; and
• Improving the capital structure and financing flexibility.

Capitalizing on the strategic partnership with Alcos;

• Enhancing the management and technical practices at the Pingguo plant throughout the expected Pingguo JV; and
• Incorporating best practices at the Ringguo JV into our other facilities in order to improve the cost efficiencies of plants.

The net proceeds from the Global offering, after deducting the related expenses, are estimated to amount to approximately US$335.1 million (RMB2, 939.1 million) (based on the offer price HK$1.29 per H share or US$16.67 per ADS). The Group at present intends to apply the net proceeds as follows: