Cap­i­tal cost of Alba ex­pan­sion project cut by $500 mil­lion

Arab News - - BUSINESS & ECONOMY -

ABU DHABI: Alu­minium Bahrain (Alba), 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 tons to 1.5 mil­lion tons 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 con- tin­u­ing 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.

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