Aluminum Corporation of China Limited, or Chinalco, China's largest alumina producer and the world's third largest primary aluminum producer, has announced the sale of 8 billion yuan's worth ($1.3 billion) of assets after heavy losses for the past four years.

The assets being sold are held by nine subsidiaries, including producers in the Southwest and Northwest China, eight of which registered considerable losses in the past year.

In 2012 Chinalco posted a total loss of 8.23 billion yuan, a record low since listing in 2007.

In an effort to turn around its fortunes, Chinalco is abandoning its loss-making aluminum processing activities, and switching to alumina and electrolyzed aluminum.

The assets being sold are being taken over by its major shareholder, the Aluminum Corporation of China.

Chinalco's stock price has fallen to less than a tenth of its peak of 60.60 yuan when it was first listed.

The 2008 financial crisis dealt a heavy blow on the aluminum market and Chinalco posted its first deficit of 4.65 billion yuan the year after.

The lackluster rebound of the domestic economy, coupled with overcapacity, have also contributed to its poor performance.