China's biggest aluminium producer Chalco said Monday it planned to take a majority stake in Mongolian coal miner SouthGobi Resources, as China seeks raw materials to fuel its economy.

Chalco said it aimed to acquire up to 60 percent of SouthGobi's shares in a deal valued at HK$7.2 billion ($927 million), according to a statement to the Hong Kong stock exchange, where both firms are listed.

The Chinese firm would buy out SouthGobi's biggest shareholder, Canada-based Ivanhoe Mines, as part of the takeover, the statement said.

Under the deal, Chalco would purchase up to 100 percent of SouthGobi's coal production at market prices for up to two years.

Chalco would also provide electricity to SouthGobi's Mongolian operations, perhaps through development of a power plant, SouthGobi said in a separate statement.

SouthGobi's flagship coal mine, Ovoot Tolgoi, is already providing coal to Chinese customers since it is located just 40 km (25 miles) from the Mongolia-China border, according to the company's website.

China has encouraged its companies to invest abroad, especially in sources of the raw materials the country needs to fuel its rapid economic growth.

In 2010, Chalco signed an agreement with mining giant Rio Tinto to jointly develop an iron ore field in the African country of Guinea.

Chalco's shares closed down 1.87 percent at HK$3.67 in Hong Kong on Monday. The company said last month that its net profit slumped nearly 70 percent in 2011 on rising financing and raw material costs.

But SouthGobi shares surged 18.16 percent to HK$60.50 following Monday's announcement.