China’s state-owned aluminium giant Chalco and Anglo-Australian miner Rio Tinto have agreed to acquire a controlling stake in Brazil’s Companhia Brasileira de Aluminio (CBA) in a transaction valued at US$886 million, marking one of the most significant foreign acquisitions in Brazil’s metals sector in recent years. The deal reinforces China’s expanding footprint in South America’s strategic mineral assets.
The acquisition covers a 68.6 percent stake in CBA held by Brazilian conglomerate Grupo Votorantim and will be executed through a joint venture incorporated in Brazil, with Chalco holding 67 percent and Rio Tinto 33 percent. CBA, founded in 1941, is Brazil’s only fully integrated aluminium producer, operating across bauxite mining, alumina refining, primary aluminium smelting, and the manufacture of value-added products. The company also controls three bauxite mines producing roughly two million tonnes annually and manages 1.6 gigawatts of hydroelectric, wind, and solar capacity, providing critical self-sufficiency in electricity for aluminium production.
Rio Tinto CEO Jerome Pecresse said the acquisition aligns with the company’s strategy to expand its low-carbon, renewable-powered aluminium operations in growing markets and provides opportunities to develop bauxite and alumina supply chains in the Atlantic region. The deal requires a public tender offer for minority shareholder stakes, with the potential for delisting once the controlling stake is finalised.
The sale comes as Votorantim continues to divest from commodities, shifting focus toward infrastructure, energy, and financial services. Fitch Ratings noted that the transaction would improve Votorantim’s liquidity and modestly enhance leverage, while CBA represents a smaller share of the group’s earnings relative to its debt.
The deal also highlights China’s broader push into Brazil’s mining and metals sector, with Chinese firms acquiring assets in nickel, tin, copper, and gold. In December, China Molybdenum Company purchased a group of Brazilian gold mines for US$1 billion, expanding its presence in strategic raw materials. Brazilian Mines and Energy Minister Alexandre Silveira emphasized the importance of strengthening ties with China’s energy and mining sectors, especially for projects tied to renewable generation, energy storage, and critical mineral development.
Regulatory approval from Brazil’s antitrust and energy authorities is still required, with the companies expecting clearance later this year. Analysts say the transaction underscores China’s growing influence in South America’s resource industries and its pursuit of long-term strategic control over key mineral and energy assets.
