The Aluminum Corp. of China, or Chinaclo, is expected to take over the Beijing General Research Institute of Mining and Metallurgy (BGRIMM), according to a source close to BGRIMM.

The BGRIMM, a state-run research institute affiliated to the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), is scheduled to be restructured by the end of the year, the source said.

Among all potential buyers, the SASAC is most interested in Chinaclo, he added. "It is natural that BGRIMM will let Chinaclo in, as they once belonged to the same group," he said. The two companies were once affiliated to China Nonferrous Metals Industry Corp., which was dissolved in 1998. But they kept close ties since then.

The BGRIMM is China's largest mining and metallurgical research and engineering design institute, with strong R&D strength in the non-ferrous metals industry. It has undertaken R&D and engineering design projects for Chinaclo.

The research institute is the controlling shareholder of the Shanghai-listed BGRIM Materials and Technology, which boasts a market capitalization of 1.773 billion yuan. It also holds controlling stake in the ChiNext-listed Beijing Easpring Material Technology.

The BGRIMM has 10 research and design centers, an engineering company, three national-level engineering technology design centers, a national-level key laboratory, and a heavy nonferrous metals quality inspection and monitoring center.

It is also a member of the newly established Electric Vehicle Industry Alliance, made up of 16 Chinese centrally-administered state-owned enterprises (SOEs).

The BGRIM Materials and Technology takes up 30 percent of the market share in the magnetism materials industry and over 30 percent share of the tungsten market.

Market observes expect Chinaclo's takeover will both expand its R&D and design capability and help it march into the new-energy automobile field.

Chinalco is the parent company of Chalco, the country's largest alumina and primary aluminum producer.