Malaysian aluminum producer Press Metal is likely gain direct access to 500,000 mt of alumina over the next two years as it continues to strive towards achieving self-sufficiency in feedstock procurement, a company representative said Monday.
The supply is set to flow from its memorandum of understanding to acquire a 25% equity interest in Bintan Alumina Indonesia last Friday, which is building a 1 million mt/year alumina refinery that is slated to come on stream in 2021, and from its acquisition last year of a 5% stake in Australia's Worsley refinery.
Press Metal will start receiving supplies from Worsley in 2020, as that company has supply contracts for the current year, and start receiving supply from BAI once production commences in 2021, said Sandy Yap, CEO of iBES Advisory, an investor relations firm that represents Press Metal.
Press Metal currently requires 1.5 million/year of alumina to produce 760,000 mt of aluminum, and sources its requirements from third parties on a term and spot basis.
It is seeking to invest further in alumina and carbon anode production as it targets achieving full self-sufficiency in feedstock procurement for aluminum production, Yap said.
"Press Metal management was in talks with several parties and one of the reasons for choosing BAI was its location in Bintan, which is close to the smelter in Sarawak," Yap added.
Press Metal also operates a joint venture with China's SDCL in Shandong province that produces pre-basked carbon anode.
Group CEO Paul Koon said Friday: "We are constantly on the lookout for suitable assets to strengthen our position as a globally integrated aluminum corporation... we are still in expansion mode."
Source: Platts |
