As part of the deal, Chalco will purchase 1.3 billion shares of Winsway Coking Coal from its parent company Winsway Resources Holdings at $2.12 per share.

Following completion of the deal, Chalco will become Winsway’s single largest shareholder.

Winsway is one of the largest buyers of Mongolian coking coal and one of the leading suppliers of imported coking coal to China.

The acquisition is subject to shareholder approval and certain conditions being satisfied.

The transaction follows an announcement made earlier in the month in which Chalco made an offer to acquire a 60% stake in Ivanhoe Mines subsidiary SouthGobi Resources for $C889 million.