Aluminium Bahrain to decide on production train soon

MEED reported that plan would boost aluminium production capacity to 1.2 million tonnes per year. State run Aluminium Bahrain will make a decision by the end of 2009 on whether to resume its stalled plan for a 6th aluminium production train following a review of the project. If built, the train will boost the company's production capacity to more than 1.2 million tonnes per year. In January, Alba announced that it was delaying the scheme first mooted in 2005 because of falling global demand for aluminium. But since then, a recovery in the global metals markets has revitalized interest in the scheme. On August 26th 2009 aluminium was trading at USD 1,884 per tonne on the London Metal Exchange down almost 50% YoY but still higher than its USD 1,300 per tonne low in February. Mr Ahmed Saleh al Noaimi CEO of Alba said that he is still working on the review of plans to expand the existing facilities at Sitra including securing gas supplies. Mr Al Noaimi said that "We either need to import energy or conserve our existing facilities and that is part of the review. Whether or not to proceed with the sixth is at the top of the list of the review. We are receiving outside help on the strategy and expect to communicate by the end of this year." He said that Bahrain's proven natural gas reserves will fall to about 75 billion cubic meters by 2011 from 84 billion cubic meters currently making a gas import deal a priority for the country. Although Bahrain signed headline agreements to import gas from Qatar and Iran in 2007 and 2008 respectively, it has yet to finalize an agreement with either country. The government of Bahrain owns 77% of Alba. The other shareholders are Saudi Arabia Sabic Industrial Investments with 20% and Germany based Breton Investments with 3%. (Sourced from MEED)