Chalco executive latest to face Beijing investigations

A senior manager of Aluminum Corp of China (Chalco), the country's largest smelter of the lightweight metal, has become the latest in a series of high-level executives at central government-administered enterprises to be investigated by Beijing.

Vice-president Li Dongguang was under investigation "by relevant authorities for personal reasons", Chalco said in a statement to Hong Kong's stock exchange without elaborating. "The investigation has no relation whatsoever to the company," it said, adding Li had tendered resignation from his post and that the resignation had no noticeable impact on its production.

Li was also general manager of Chalco Aluminium International Trading and oversaw a deal between the aluminium giant and Mongolia's state-owned coking coal miner Erdenes Tavan Tolgoi.

In January, ETT sought to renegotiate a 2011 long-term deal to supply US$250 million worth of coal to Chalco for smelting steel and suspended deliveries, citing production costs being lower than market prices. Chalco threatened to sue ETT but deliveries resumed in April under the original terms.

Chalco diversified into coal trading and iron-ore mining after it suffered years of low profits and losses in the oversupplied aluminium sector.

News of Li's investigation came on the heels of China Cosco executive director Xu Minjie's resignation after an investigation by mainland authorities.