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Wednesday, February 13, 2013

China's CITIC buys $467 million stake in Australia's Alumina, (NYSE: AWC)

China's state-owned CITIC Group has bought a A$452 million ($467 million) stake in Australia's Alumina Ltd, giving it an interest in the world's largest alumina business at a time when China has grown more dependent on alumina imports.Alumina's shares jumped 17 percent after the share sale was announced, on relief that the company has been shored up by a strategic investor, allowing it to pay down debt as the aluminium industry struggles with weak prices."This takes all the pressure off them," said Hayden Bairstow, an analyst at CLSA.Alumina owns 40 percent of Alcoa World Alumina & Chemicals (AWAC), the world's top producer of alumina, in a joint venture with U.S. aluminium giant Alcoa.

Alumina Limited (Alumina), is an Australia-based company. Shares of AWC traded higher by 4.05% or $0.19/share to $4.88. In the past year, the shares have traded as low as $2.65 and as high as $5.94. On average, 237661 shares of AWC exchange hands on a given day and today's volume is recorded at 292276.