Alba expansion set next year

27/11/2014 06:14 AST

Work on Alba's proposed sixth production line, estimated to cost $2.5 billion, is expected to start early next year, Deputy Prime Minister Shaikh Khalid bin Abdulla Al Khalifa said yesterday.

He said the project is awaiting key government clearances including final approval for the gas pricing structure on the line.In September, the cabinet approved the gas allocation needed to support the line.

The Deputy Premier was speaking on the sidelines of 18th Arab International Aluminium Conference and Exhibition (Arabal), which he inaugurated at the Gulf Hotel's Gulf Conference Centre. He was deputised by His Royal Highness Prime Minister Prince Khalifa bin Salman Al Khalifa to open the event.

The line 6 project will add 400,000 tonnes to the smelter's current capacity of more than 900,000 tonnes, he said.

Shaikh Khalid said the expansion would enable Alba to realise its ambition of remaining one of the largest smelters in the world.

'The initiative will help Bahrain capture a significant portion of the aluminium value chain, creating many co-investment as well as employment opportunities downstream,' he added.

The Deputy Premier also said there was a need for GCC aluminium producers to co-operate in areas such as technology research and development for mutual benefit.

Earlier, in his opening remarks, Alba chairman Shaikh Daij bin Salman Al Khalifa said the company is ramping up production amid expectations for growing aluminium demand, which is forecast to rise seven per cent this year with emerging markets continuing to be the key growth drivers.

The project would take 36 months for completion from the commencement date, Shaikh Daij said.

Alba chief executive Tim Murray who also spoke during the opening session said the company expects to achieve 920,000 tonnes of production by year end.

The smelter achieved a production record of 912,700 tonnes last year.

The construction of a fifth power station will also be a part of the expansion, he said.

Alba is a key pillar of Bahrain's economy and contributes around 10pc of the national GDP, Mr Murray said.

Economic Development Board chief economist Dr Jarmo Kotilaine participated in a key panel discussion on the importance of the aluminium sector as one of the leading contributors to the Bahraini economy, and reasons GCC smelters should focus on downstream development.

Dr Kotilaine took part alongside representatives from Mumtalakat, Alba and Midal Cables.

The Gulf Aluminium Safety (GAC) Awards were held in recognition of the companies' contribution to a sustainable Gulf region.

GAC Environmental Awards went to Ma'aden for Smelter Category and Midal Cables for Downstream Category, while the GAC Health and Safety Awards went to Alba for Smelter Category and Gulf Extrusions for Downstream Category.

Gulf Daily News