Bahrain's Alba eyes financing for $2.5bn plan

Aluminium Bahrain hires BNP Paribas to advise on financing options for expansion project
Bahrain's Alba eyes financing for $2.5bn plan
Aluminium Bahrain says production levels rose 1.7 percent in H1.
By Reuters
Mon 23 Jul 2012 04:43 PM

Aluminium Bahrain, which owns the world's fourth-largest aluminium smelter, said on Monday it hired BNP Paribas to advise on financing options for a proposed $2.5bn expansion plan to add a sixth production line.

Alba has said the new line - which will add 400,000 tonnes annual capacity to its current production of 881,000 tonnes a year - could be completed by early 2015.

A project feasibility study is expected to start at the end of the year, the Bahraini firm said in a statement, adding it choose BNP for its "strong presence in Bahrain along with extensive experience with the aluminium sector."

Alba's last major expansion took place in 2005 when it added a fifth potline at a cost of $1.7bn.

Bahrain's state-run energy supplier raised Alba's gas supply costs by $0.75 per million British thermal units (mmbtu) to $2.25/mmbtu on January 1, but Alba still enjoys cheaper fuel than its competitors outside the Gulf.

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