Aluminum Corporation Of China L (NYSE:ACH)

HOUSTON, Sept. 14, 2015 (GLOBE NEWSWIRE) -- Synthesis Energy Systems, Inc. (SES) (SYMX), a global energy and gasification technology company enabling clean, high-value energy and chemical products from multiple feedstocks, reports a progress update from Suzhou Thvow Technology Co., Ltd. (THVOW) (Shenzhen listing code:002564) regarding the first of three previously announced natural gas replacement projects under construction for Aluminum Corporation of China Limited (CHALCO) (ACH) (2600.HK) (601600.SS), located in Zibo City, Shandong Province. THVOW has reported that the Zibo City project, which entered its commissioning phase in June 2015, has achieved an important milestone with the first of the two gasification systems having successfully completed 72 hours of continuous full-load testing. Once all testing work has been completed and the project turned over to CHALCO, the Zibo Project would become the largest domestic Chinese gasification project of its type.

The test results confirmed that the performance of the first of two SES Gasification Technology (SGT) gasification systems installed in the Zibo Project meets the required design requirements. During the continuous full-load test, the SGT gasifier system produced 110% of the required design syngas capacity, reaching 43,000 NCM (normal cubic meters) per hour of clean syngas. Additionally, the energy content of the syngas also exceeded the design requirements by 10%.

"The SES technical team has been working closely with our Tianwo-SES JV partner and our China JV partner's ICCDI design institute to help achieve this operating milestone. During this commissioning phase, the project has been routinely supplying the Shandong CHALCO branch with syngas for more than a month as the teams complete commissioning and refine the operation of the gasification systems," stated DeLome Fair, President SES Technologies, LLC. "Our SES Gasification Technology has very broad flexibility regarding the range of coal feedstocks it can gasify and this, combined with very high gasification efficiency, lower water consumption and lower construction cost than comparable technologies, has the potential to bring significant value to projects using our technology.

"This first CHALCO project at Zibo City is making another important step in demonstrating these key attributes of our technology which we believe is the future of coal gasification," added Ms. Fair.

Total construction order commitments of approximately 650 million Yuan ($102 million) for the three projects were announced in December 2014 between Aluminum Corporation of China, China's largest alumina and primary aluminum producer, and Innovative Coal Chemical Design Institute (Shanghai) Co., Ltd. (ICCDI). ICCDI is the general contractor supplying all the engineering, construction and balance of plant equipment for the three projects. The total order value for these projects to Tianwo-SES for technology and equipment supply from ICCDI, a subsidiary of Suzhou Thvow Technology Co., Ltd. (STT) (Shenzhen listing code:002564), is expected to be approximately 140.3 million Yuan ($22 million). Tianwo-SES Clean Energy Technologies Co., Ltd. (Tianwo-SES) is SES's joint venture with STT.

ALUMINUM CORPORATION OF CHINA LIMITED

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (CONTINUED)

As of December 31, 2012 and 2013

(Amounts expressed in thousands of RMB unless otherwise stated)

In light of our good credit standing and various domestic and overseas financing channels, we believe that we will not experience any difficulty financing capital investments. Our capital expenditures and external investments have historically been mainly financed by cash generated from operating activities, long-term and medium-term borrowings and equity offerings.

The Board believe that we has adequate resources to continue in operational existence for the foreseeable future not less than 12 months from the date these financial statements were approved. The Board therefore continues to adopt the going concern basis in preparing these financial statements.

Our capital expansion plan for 2011 requires a total of approximately RMB22.6 billion (US$3.4 billion) in capital expenditures for technology upgrading and expansion projects to increase our annual production capacity. In 2011, our annual production capacities of alumina, primary aluminum and aluminum fabrication are expected to increase by approximately 270,000 tonnes, 388,000 tonnes and 35,000 tonnes, respectively.

We intend to fund these capital expenditures through a combination of internal funds derived from our own operations and the proceeds from medium-term and long-term debt financing.

Guidance Report:

Per information in a recent SEC filing (The GeoTeam® could not locate a corresponding press release):

Based on the preliminary calculation of its financial data for the year 2008,  the consolidated net profit of the Company for the 12 months from 1 January 2008 to 31 December 2008 is estimated to decrease by over 50% as compared with the same period last year.

Reasons For Decline:

1. In the first half of 2008, the freezing weather and snow storms in certain areas in the Southern, Northwestern and Southwestern parts of China resulted in power supply cut-off, which led to temporary complete halt of production of Guizhou Branch, Zunyi Aluminum Company Limited and partial suspension of production of Shanxi Huasheng Aluminum Company Limited and Shanxi-Huaze Aluminum & Power Co., Limited, thereby affecting our production operations. In August 2008, as a result of the shortage of summer power supply in some provinces, some enterprises of the Company such as Shanxi-Huaze Aluminum & Power Co., Limited partially stopped production. As a result, the Company's production and operation were affected.  

2. For the first 3 quarters of 2008, as a result of the hiking prices of fuel and energy, the Company's production cost increased significantly over the corresponding period last year.

3. In the second half of 2008, the global financial crisis deepened and expanded, which had a negative impact on non-ferrous metal industry. The demand for aluminum from the real estate, automobile and related industries decreased significantly. The excess supply of aluminum over demand resulted in a sharp increase of aluminum inventories in the domestic market and the international market. Sales prices of products such as aluminum and alumina decreased dramatically. After mid-October, the Company idled an annual alumina production capacity amounting to 4.11 million tonnes and an annual aluminum production capacity amounting to 0.72 million tonnes among high cost enterprises.

Source: SEC Form 6K ( January 22. 2009)