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Aluminium Bahrain (ALBH)

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Thursday 11 June, 2015

Aluminium Bahrain

EGM Statement

RNS Number : 8439P
Aluminium Bahrain B.S.C.
11 June 2015
 

Alba approves Line 6 Expansion Project which will make it the world's largest single site smelter

 

Aluminium Bahrain B.S.C. (Alba) announces approval for the Line 6 Expansion Project which would make the Company the largest single site smelter upon project completion. The Line 6 Expansion Project, expected to begin production in early 2019, will boost the per-annum production by 514,000 metric tonnes upon full ramp-up. This would bring Alba's total production capacity to approximately 1,450,000 metric tonnes per year.

 

One of the biggest industrial projects in the Kingdom of Bahrain, the Line 6 Expansion Project is expected to have a big impact on the economy and new job creation. In addition, at least 50% of the new metal production is expected to be sold to existing and new Bahrain downstream customers.

 

The Line 6 Expansion Project will allow Alba to continue its marketing strategy of maintaining its core presence in the GCC and, leverage its global sales offices to directly market the additional metal produced to meet the growing international demand for aluminium.

 

Alba's Chairman of Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa said:

"I express sincere thanks to His Majesty King Hamad bin Isa Al Khalifa, His Royal Highness The Prime Minister, Prince Khalifa bin Salman Al Khalifa and His Royal Highness, The Crown Prince, Deputy Supreme Commander and First Deputy Premier, Prince Salman bin Hamad Al-Khalifa for granting their approval and giving support for Alba's Line 6 Expansion Project. I also express our profound gratitude to the Government of the Kingdom of Bahrain for its decision to approve the Line 6 Expansion Project.

 

The Line 6 project will make Alba the largest single-site smelter in the world. In addition, it will strengthen Bahrain's position as the hub for the downstream aluminium industry in the GCC."

 

 

The Company's Board of Directors looked at various options from the Line 6 Bankable Feasibility Study (BFS) and ultimately finally opted for the largest expansion option of 514,000 metric tonnes which will significantly improve Alba's overall cost position.

By selecting the larger production capacity, the CAPEX associated with the Line 6 Expansion Project will be approximately US $ 3.5 billion versus the prior estimate of US $ 2.5 billion.  Included in this CAPEX is the construction of a fifth power station with a capacity of 1,350 Mega Watts.

 

The Line 6 potline will utilize Dubal's DX+ Technology which will bring state-of-the-art technology to optimise cost performance and reduce energy consumption.

 

In addition, the Board of Directors has officially appointed J.P. Morgan, Gulf International Bank (GIB) and National Bank of Bahrain (NBB) as Alba's Financial Advisors for Line 6 Expansion Project.

 

During the Extraordinary General Meeting (EGM), Mutlaq Al-Morished was also elected as an independent board director representing the 10% public listed shares.

 

Actual construction of Line 6 is estimated to commence in 2016 upon the completion of final engineering designs, selection of project EPCM for Line 6 and EPC for the Power Station 5.

 

Alba's Chief Executive Officer, Tim Murray added:

"We are very excited to get the go ahead for the Line 6 Expansion Project and look forward to the many opportunities it will present for both Alba and Bahrain."

 

The Line 6 Expansion Project is the culmination of the 40 years of history that Bahrain has in the aluminium industry as it will allow Alba to optimise both - its cost structure and marketing strategy. The Line 6 Expansion Project will be an important milestone for Alba and will sustain the aluminium industry in Bahrain for many generations to come.

 

ENDS

 

About Alba:

Aluminium Bahrain B.S.C. (Alba) - one of the largest and modern aluminium smelters in the world - is renowned for its premium grade aluminium products, technological strength and innovative policies, strict environmental guidelines and high track record for safety. Established in 1971 as a 120,000 tonnes per annum smelter, Alba today produces more than 912,000 metric tonnes per annum of the highest grade aluminium, with products including standard and T-ingots, extrusion billets, rolling slab, properzi ingots, and molten aluminium.

Alba is listed on both the Bahrain Bourse and London Stock Exchange, and the Company's shareholders are Bahrain Mumtalakat Holding Company (69.38%), SABIC Industrial Investment Company (20.62%) and the General Public (10%).

 

 

About Line 6 Expansion Project:

 

Line 6 Expansion Project, expected to begin production by early 2019, will boost the per-annum production by 514,000 metric tonnes, bringing the total production capacity of Alba to around 1.450 million metric tonnes per year.

Bechtel Canada completed the Bankable Feasibility study for the $3.5 billion Line 6 Expansion Project in December 2014. DX+ Technology is selected as the base for Line 6, while J.P. Morgan, Gulf International Bank (GIB) and National Bank of Bahrain (NBB) are the Financial Advisors of the Project.

The Line 6 Expansion Project will enhance the downstream industry by creating many co-investment opportunities through local and foreign aluminium investments. It will create hundreds of jobs, directly and indirectly, which will be a significant economic boost for the Kingdom of Bahrain.

 

 

For further details, please contact:

 

Eline Hilal

Investor Relations Manager 

Investor Relations Department

 

Tel:        (973) 1783 5100 (direct)

Fax:        (973) 1783 3822

E-mail: [email protected]

Website: www.albasmelter.com.bh

 

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This information is provided by RNS
The company news service from the London Stock Exchange
 
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