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Alba drops power assets spin-off proposal

October 2, 2021
real estate

Aluminium Bahrain (Alba), the world’s largest aluminium smelter ex-China, today (September 29) not to pursue a proposal to spin off its power assets.

This was announced following Alba's first in-person board of directors meeting since the Covid-19 pandemic at the Alba Oasis Hall to review its overall performance for the third quarter.

The meeting received an update on the five-year strategic initiatives which included a feasibility study on the spin-off proposal. After a thorough review at the board meeting, it was decided not to pursue this matter given the high risks associated with the divestment of the company’s power assets, it added.

Alba Campus comprises six Reduction Lines, three Power Stations, four Casthouses, four Carbon Plants along with other ancillary facilities.

The meeting, which was chaired by Shaikh Daij Bin Salman Bin Daij Al Khalifa, discussed Alba’s production volumes amidst high raw materials prices, overall sales with the global logistics’ issue, safety (achieving more than 16.5 million safe working-hours to-date and more than 99.7% vaccination in the workforce) and its financial performance.

The members also discussed the Al Hassalah programme, and work progress being made on the Spent Pot Lining Treatment Plant project, said a statement from Alba.

In addition to primary aluminium production, Alba also produces 530,000 mtpa of high-quality calcined petroleum coke at its own dedicated Coke Calcining Plant.

Alba also yields 9.5 million cubic metres of potable water per annum from its dedicated seawater desalination plant.

Addressing the board members, Shaikh Daij said: 'We are very thankful to the kingdom's leadership for everything they have done since the start of Covid-19 pandemic and towards HRH Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister, for his hands-on efforts along with all frontliners’ in Bahrain to bring us to where we are today: citizens and residents in order to keep us safe.

'We were able to conduct this in-person board meeting only beause of the hands-on efforts put through in the last 1.5 years,' he stated.

'While the value of human interaction cannot be overlooked, we, at Alba, have been agile as we have implemented virtual meetings from the onset and have recently started to transition into in-person meetings,' said Shaikh Daij.

'As we navigate through this pandemic, we have set new benchmarks in terms of operational and financial performance (breaking an all-time records in terms higher production, ebitda and net profits for the first half of 2021) as well as on the ESG front,' he stated.

'We had recently signed an agreement with Sustainable Energy Authority (SEA) to implement various sustainable energy initiatives of common interest – this will consolidate our efforts one step further towards our race towards decarbonization,' he added.

The meeting was attended by the Alba board of directors appointed by Bahrain Mumtalakat Holding Company - Yousif Abdulla Taqi, Suha Karzoon, Shaikh Isa Bin Khalid Al Khalifa, Tim Murray and Rasha Sabkar - and those by Sabic Industrial Investments Company (SIIC) - Ahmed Al Duriaan, Iyad Al Garawi and Omar Al Amoudi and one elected director Mutlaq Al Morished.