Sep 17 2003
Alcoa are set to acquire a 26% stake in the aluminium producer, Alba, following the signing of a memorandum of understanding between Alcoa and the government of the Kingdom of Bahrain.
The Alba aluminium smelter has a capacity of 512,000 tons of aluminium per year from its existing 4 pot lines. This will be increased to 819,000 tons per year when the 5th potline is completed in 2005. Alba is a world class facility and has one of the lowest production costs in the world.
The signing of the MOU will also accelerate the addition of a 6th potline, which will add a further 307,000 tons of aluminium to the annual capacity.
Alcoa has been one of the major suppliers of alumina to Alba since it was established in 1971. The new arrangement will also help to tie up further long term alumina supply deals for Alba, which will require as much as 2.2 million tons of alumina when the 6th potline is completed.
The agreement between Alcoa and Alba regarding equity shares and alumina supplies will be finalised in mid-2004 and will take effect after the 5th potline is completed in March 2005.
For more information on alumina, click here.