01 July 2015

Aluminium Bahrain (Alba) has received government approval for its Line 6 expansion project, which will cost $3.5 billion and on completion make it the world’s largest single site smelter.

The project is expected to boost the company’s annual output by 514,000 tonnes to 1.45 million tonnes a year, stated Shaikh Daij bin Salman bin Daij Al Khalifa, the chairman of board of directors at Alba.

The board had studied various options from the Line 6 bankable feasibility study (BFS) before finally opting for the largest expansion option of 514,000 tonnes, which will significantly improve Alba’s overall cost position, he stated.

By selecting the larger production capacity, the capex (capital expenditure) associated with the Line 6 expansion will be approximately $3.5 billion versus the prior estimate of $2.5 billion. Included in this capex is the construction of a fifth power station with a capacity of 1,350 MW, he added. Alba said the Line 6 potline will utilise Dubai Aluminium’s (Dubal) DX+ technology, which will bring state-of-the-art technology to optimise cost performance and reduce energy consumption. The construction is expected to start in 2016 and production to begin in 2019.

Welcoming the move, CEO Tim Murray said: “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 project is the culmination of the 40 years of history that Bahrain has in the aluminium industry as it will allow the company to optimise both its cost structure and marketing strategy, he stated.

According to him, the Line 6 expansion will be an important milestone for Alba and will sustain the aluminium industry in Bahrain for many generations to come.

The proposed opening date for Line 6 is dependent on final approval for a gas pricing structure being received from the Bahraini government.

In another development, JP Morgan, Gulf International Bank (GIB) and National Bank of Bahrain (NBB) have been appointed the company’s financial advisers for the project.

• Doha Metro tunnel work on target
• Arcadis secures $22m deal
• Qatar building material costs to surge
• Top European firms vie for $1bn Oman project
• Work to start on new UK naval base
• Oman to build first sugar refinery
• Jahra Road project marks key milestones
• Oman Rail to award key consultancy deal
• Stadium marks milestone
• Qatar invites bids to build 250-bed hospital
• Siemens signs $9bn Egypt contract
• Nine vie for Oman dry port deal
• Foundation stone laid for 5,000-unit housing scheme
• Oman signs deals to build 176 houses
• Go-ahead for Alba’s $3.5bn Line 6 expansion
• Update
• Qatar in global search for museum designer
• Autodesk software used to design Doha Expressway
• SSH wins design deal for South Mall
• Cardiac centre a step closer
• Airport road to be a highway

Tags

Dredging & Reclamation Steel Airport Construction Cooling & Ventilation Portable & Prefab Legally Bound Just Out Regional News Saudi Focus UAE Focus Events Diary of events Tenders Interiors Contractors Real Estate Manufacturers & Procurement

Gulf Construction is the undisputed leading trade journal for the building and construction industries of Saudi Arabia and the other Gulf states. The magazine provides editorial coverage on a wide range of topics which are of interest to industry professionals. In addition, regular features highlight technological developments within specific industry fields. Launched 40 years ago, the magazine has established an enviable reputation as an authoritative, respected journal with unmatched coverage of the Gulf region. Gulf Construction is essential reading for anyone with a serious interest in the region’s building and construction industry.