Oman's Sohar Aluminium to buy spot alumina from around December

Oman's Sohar Aluminium Compnay which historically buys all its alumina feedstock from shareholder Rio Tinto through a term contract, plans to start acquiring volumes from the open market from around December, a company source said Thursday.

Sohar plans to boost its production of primary aluminum to 390,000 mt/year from 360,000 mt/year, tentatively by December, and part of its additional alumina requirement is to be sourced from the spot market. In addition Sohar Aluminium is to start an expansion project on its smelter during the second half of 2011, which will add another 360,000 mt/year of metal production capacity. Construction is estimated to last two to three years. Sohar Aluminium is an alliance comprising Oman Oil （40%）, Abu Dhabi Water and Electricity Authority （40%） and Rio Tinto （20%）. Rio Tinto ships alumina to the joint venture from Australia.