Aluminium Bahrain, owner of one of the world's largest smelters, said on Sunday the global drop in oil prices has cut the projected capital cost of its Line 6 expansion by $500 million to a total of $3 billion.
The Line 6 project is expected to boost Alba's annual output by 540,000 tonnes to 1.5 million tonnes a year with "first hot metal" due to flow in early January 2019.
"Following our ongoing review in response to the lower oil prices and the commodity market's soft conditions, the capex has significantly shrunk to approximately $3 billion," a statement by the company said.
The firm also said it was continuing to explore different possibilities for the structuring and financing of the project.
"We are pleased to arrive at a lower capex as that will reduce the debt burden when financing the construction of the sixth pot line and Power Station 5," Chief Executive Tim Murray said in the statement.For all the latest industry news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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