Aluminium Bahrain (Alba) has signed a memorandum of understanding (MoU) with China’s Hangzhou Jinjiang Group Co. Ltd (HJJ) to secure the alumina requirements for the former’s smelter.
The Bahrain-based aluminum maker said in a media statement on Dec 6 that the MoU would help the company hedge against price volatility in the alumina market as well as supply constraints. For HJJ, the agreement will help expand its international reach.
HJJ’s China operation has the capacity to produce 10mn mt of alumina while Alba produced around 385,000mt of primary aluminum in Q3 2020. The Bahrain smelter has targeted output of 1.54mn mt of aluminum by the end of 2020.
The companies said that the agreement would remain in effect for three years after which they might negotiate an extension.