The nonferrous metals trader, formerly known as Oriental Metals (Holdings), has become the country's largest alumina importer after buying its parent's alumina and aluminum assets last month for HK$2.89 billion.

The company is targeting 2 million tonnes of imports this year, up from 1.9 million tonnes in 2004, or about a third of all alumina shipped to China. "We are now studying a plan to introduce strategic investors, including alumina suppliers and mining companies," executive director and vice president Wang Lixin said.

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Alcoa, the world's biggest aluminum maker, will supply 400,000 tonnes of alumina a year until 2027.

Minmetals Resources has a three- year option from China Minmetals for a 51 percent stake in US-based alumina refiner Sherwin Alumina and 33 percent of Guangxi Huayin Aluminium.

Huayin, which will have an annual capacity of 1.6 million tonnes by 2008, is 33 percent owned by China's largest alumina maker, Aluminum Corp of China (Chalco), and 34 percent by the Guangxi provincial government.

High aluminum prices prompted Chalco to increase the price of alumina from today - by 7.6 percent to 4,660 yuan (HK$4,470.80).

Wang said prices of basic metals, including aluminum, have reached a peak that may be sustained for some time.

Even so, "prices have already been very high and they should come back to a rational level," he said.

Government policies will cut metal exports, he said. "I believe metal exports next year, especially the second half, will fall dramatically."

The mainland government in January removed an 8 percent value-added tax rebate and imposed a 5 percent tariff on aluminum exports.

Minmetals Resources will focus on nonferrous metal business, while its sister company, Onfem Holdings, will concentrate on property.