Shenhuo, whose affiliate makes aluminium in Yunnan next to Guangxi in southwest China, will not pay for the stake in Guangxi Longzhou Aluminium being transferred from Hangzhou Jinjiang, it said in filing to the Shenzhen Stock Exchange.
It will, however, assume investment responsibilities.
Construction of the 3.12 billion yuan ($450 million) first phase of Guangxi Longzhou's alumina plant, designed to produce 1 million tonnes per year, began in November 2019.
The project is expected to start production this December, the filing dated Tuesday said, adding that Guangxi Longzhou had access to abundant resources of bauxite, the aluminium-rich ore from which alumina is refined.
Shenhuo has the right to increase its stake up to 51% while Hangzhou Jinjiang will for now retain 34%, Guangxi Chongzuo Jianzhuo Asset Management 20% and Guangxi Longzhou County Industrial Transportation Investment 10%.
($1 = 6.9309 Chinese yuan renminbi)
(Reporting by Tom Daly; editing by Jason Neely)