Bloomberg reported that Saudi Arabian Mining Company is targeting 22% jump in the price of aluminum as demand recovers.
Mr Abdullah Abdulgader ED for Project Management and Engineering said that an excellent price would be USD 2,800 per tonne as seen before the economic crisis. While such an increase will take time, Maaden is seeing very positive indications.
Aluminum slumped 11% in the H1 on concern supply would outpace demand. The metal, used in transport, packaging and construction has since rallied on speculation that unprofitable smelters will shut and carmakers predicted record production this year. Aluminum for three months ahead closed at USD 2,292 on the London Metal Exchange.
Mr Abdulgader said that Maaden which operates in the gold, phosphate and other mining industries is concentrating on its aluminum business. The Riyadh based company is building an aluminum smelter with Alcoa Inc as part of SAR 40.5 billion industrial complex in Saudi Arabia.
Maaden's board in June approved USD 4.5 billion in financing for the Phase I of the smelter project, scheduled to start output in early 2013. The company will borrow from local and foreign banks and government funds. Maaden plans to be the lowest cost producer of the metal which will give us an edge to have a good place in the market.
（Sourced from Bloomberg）
豫公网安备41010502003434号