Aluminium Bahrain (Alba) Annual Report for 2010, for more information please visit our official website http://www.albasmelter.com

1. Balancing
40 years of experience
and ready to take on
the future
Annual Report
2011
Aluminium
for the world

2. His Royal Highness His Majesty King His Royal Highness
Prince Khalifa Hamad bin Isa Prince Salman
bin Salman Al Khalifa Al Khalifa bin Hamad Al Khalifa
The Prime Minister of the The King of the The Crown Prince & Deputy
Kingdom of Bahrain Kingdom of Bahrain Supreme Commander
Annual Report 2011 | 2

3. Contents
Board of Directors 4
Executive Management 5
Letter to our Shareholders 6-7
CEO’s Message 8-11
Alba’s Operational Highlights 12-13
Alba’s Financial Highlights 14-15
Corporate Governance 16-23
Products & Markets 24-27
Health, Safety and Environment 28-33
Corporate Social Responsibility 34-39
Financial Statements 40-74
Annual Report 2011 | 2

4. Board of Executive
Directors Management
M.
& Acting Chief
Operations Officer
Y
Annual Report 2011 | 4 5 | Annual Report 2011

5. | Letter to our
Letter to our 1200
Shareholders
1,053
Shareholders 1000
878
800
600
400
Alba continues
to work for the 200
Alba remains
best interest of its 0
committed to future
shareholders by growth through
committing to invest pro-active
in organic growth Total Debt initiatives
(US$ million)
• -16.7% Y-o-Y Growth
Dear Shareholders,
2011 was a breakthrough year, one in which further strengthen its reputation for integrity and a commitment to operational efficiency and
Alba succeeded in meeting all of its targets, with and to confirm the company as a champion for global competitiveness.
an EBITDA and Free Cash Flow at US$ 582 ethical values.
million and US$ 606 million, respectively. This I would like to thank you, our shareholders,
achievement cannot be taken for granted, Alba celebrates its four decades of operations -- for the trust you have placed in me, and in Alba’s
considering the many operating challenges that Alba’s inception in the late 1960’s triggered the board and management teams during this first
the company faced in 2011, as well as the low industrialization process not only in Bahrain but year as a publicly listed company; I hope your
LME levels in the latter period of the year. throughout the region, and also marked the first confidence in us continues in the future.
non-oil industrial diversification initiative
We have retained our solid financial position undertaken in a Gulf state. 1971 is the year that My sincere gratitude goes as well to Alba’s board
from the sustained upward trend in LME marked the inauguration of our industrial plant of directors, its management team, and all of its
and were able to increase our revenues to with a total capacity of 120,000 metric tonnes. employees, whom without their expertise and
US$ 2,349,000 despite the slump the European Today, the company’s fully fledged operations commitment Alba would not have been able to
Cash Payback 300 market has faced since the last quarter of 2011. run with an annual capacity of more than transform its challenges into such exciting
267
880,000 metric tonnes - a 5% CAGR in capacity opportunities.
to Shareholders Alba continues to work for the best interest of its since start-up forty years ago.
238
shareholders by committing to invest in organic In conclusion, it gives me pleasure to express my
(US$ million) growth and consistently to pay back cash to its A key component to this growth has been a gratitude to His Majesty the King of Bahrain,
• 12% Y-o-Y Growth 200 shareholders, while maintaining a strong sustained emphasis on lean management King Hamad bin Isa Al Khalifa; for the guidance
balance sheet. In fact, for the 2011 financial year, techniques as well as a continued focus on of His Royal Highness the Prime Minister, Prince
Alba paid Fils 0.067 a share. operational efficiency. It has provided the Khalifa bin Salman Al Khalifa; for the support of
company with the springboard for achieving its His Royal Highness the Crown Prince and
2011 marked the first anniversary of Alba’s goals for productivity and increased profitability. Chairman of the Bahrain Economic
transformation into a commercial entity -- Development Board, Prince Salman bin Hamad
100 through a dual listing on the Bahrain Bourse Viewed most broadly, the 2011 results also Al Khalifa, and to the Government of the
and on the London Stock Exchange -- and has reflect the solid fundamentals at work at Alba Custodian of the Two Holy Mosques, His Majesty
set the stage for greater emphasis on pursuing and will give us good momentum moving into King Abdullah Ibn Abdul Aziz Al Saud of the
sound corporate governance, increased 2012. Looking ahead, Alba remains committed Kingdom of Saudi Arabia, whom without their
transparency and industry best practices. As a to future growth through proactive initiatives support Alba’s accomplishments would not have
result, Alba has launched its Code of Conduct to building upon a culture of technical excellence been possible.
Annual Report 2011 | 6 7 | Annual Report 2011

6. | CEO’s
Message
750
606
600
495
450
CEO’s 300
Message 150
0
2011 proved
to be a momentous 2011 proved to be a momentous year in Alba’s Free-Cash
year in Alba’s history history since it marked record achievements
in both production and sales. These
Flow
since it marked record accomplishments were particularly significant,
2011 Highlights (US$ million)
achievements in in that they took place in the shadow of a
challenging year for businesses in the kingdom - A Strong Framework
• 22% Y-o-Y Growth
both production of Bahrain as well as against the background of for Sustainable
and sales volatile aluminium prices.
Improvement
I am pleased to say that Alba succeeded in
overcoming these challenges by recording
exceptional performance in 2011.
Production figures for 2011 topped 881,310 Alba SmartWay, which was launched in Solutions. Its stated objective is to achieve
metric tonnes - the highest recorded metal 2010, continued to set the tone for delivering a record throughout the organization of
production in Alba’s 40-year history - and a enhanced competitiveness, greater operational zero incidents causing physical harm, and it
substantial leap from the 850,700 metric tonnes efficiency and increased savings across the has succeeded in laying the foundations of
produced in 2010. As a result, the sales volume company. Success in adopting continuous important new safety principles within the
for the full-year 2011 reached 893,020 metric improvement and lean management company.
tonnes versus 854,593 metric tonnes in 2010 techniques as part of Alba SmartWay enabled
881,310
– an increase of 4.5 per cent compared to the us to retain a strong operational focus while Alba’s determination to enlarge the global
Production
850,700
1,000,000 previous year. facing the strategic challenges, and setting the footprint of its product portfolio gained
stage for us to move toward being a global
Growth Alba also benefited from the sustained upward force in the aluminium industry.
momentum in 2011 with the opening of sales
offices in Zurich, Switzerland and in Hong Kong.
(Metric Tonnes) 800,000 LME trend in 2011, and was able to grow its
revenues by 18% year-on-year despite the The implementation of Six Sigma in 2011 as
These offices will tap into the growing demand
for primary aluminium from customers in
• 3.6% Y-o-Y Growth slowdown in the European market. EBITDA for part of Alba SmartWay further reinforced the Europe and Asia.
600,000 the year reached US$ 582 million compared to strong fundamentals of Alba and proved to
US$ 552 million in 2010 – the 2nd straight year boost quality output, eliminate variability and The completion of the pre-feasibility studies
of positive growth. Our Cash Flow performance achieve measureable returns. for the Line 6 expansion project was another
was strong as we generated US$ 651 million in key highlight in 2011. The studies aimed to
400,000
Operating Cash Flow and grew our Free Cash Alba was able to generate recurrent savings determine the optimum energy sources and
Flow by 22% compared to 2010. This sound worth US$ 173 million in 2011 on a comparable technology solutions for the new proposed pot
performance enabled Alba to pay cash back basis to US$ 110 million in the previous year – line as well as look at solutions for future energy
200,000 to its shareholders of US$267 million in 2011 ahead of the set target by US$ 3 million. requirements.
as well as allowing the company to reduce the
overall debt profile by US$ 175 million, all while 2011 saw another milestone – the launch
0 retaining a very sound balance sheet. of Alba SafeWay with DuPont Sustainable
Annual Report 2011 | 8 9 | Annual Report 2011

7. | CEO’s
Message
Moving
Ahead
With a major focus on organic growth, Alba
remains determined to reduce its operating
costs, achieve additional cash savings per
annum of US$ 30 million in 2012 and improve
processes through the continuous roll-out of
plant wide Six Sigma. The management team
is confident that STAR program achievements
will enable Alba to be among the lowest cost
aluminium producers in the world.
In 2012, we will launch the bankable feasibility
studies - expected to be completed by the end
of the year - for the Line 6 expansion project.
With Line 6 fully operative, Alba will be able to
increase its production by 400,000 metric tonnes
per year, enabling the company to be positioned
amongst the largest single smelters in the world.
People Who
Make It Happen
As always, we remain indebted to Alba’s
workforce and the Labour Union, who have
made 2011 such a landmark year. We extend our
thanks and appreciation to our clientele for their
utmost trust and confidence. And, I take the
opportunity to thank our Board of Directors for
their wise stewardship and strategic guidance.
Notwithstanding the challenges in 2011, we
have had an exceptionally successful year, and
our confidence in our vision for the future has
further strengthened. We are excited about the
H.H. the road ahead and we remain optimistic that, with
Late Amir of Alba’s core fundamentals, 2012 will be another
success story.
Bahrain
Inaugurated
the smelter
in 1971
Annual Report 2011 | 10 11 | Annual Report 2011

8. June
Operational
Alba’s rail
replacement project
at the Reduction
Potlines 1, 2 and 3
wins the MEED Quality
Awards Overall Project
in the Heavy Industries
Sector, which will
Highlights
ensure continuation
September
of safe production
Announcement
operations with
of natural gas price
May nominal maintenance
increase from
Alba's Line requirements for the
US$1.50 per million
5 scores next 25 years
British thermal
improved metal
units (MMBTU) to
purity, increased
US$2.25 per MMBTU
productivity and
effective
enhanced efficiency.
1 January 2012 September
Metal purity
3 Kick-off of
was below 700
a 2-year Safety
ppm, production
Excellence
exceeded targets 5 Programme “Alba
by 986 metric
SafeWay” with the
tonnes and current
support of DuPont
efficiency reached
Sustainable
95.9 per cent
Solutions
1
7
8
4
June
Alba launches December
“Code of Conduct” 6 Alba appoints
2
David Zheng
as the manager
of its new regional
June office in
September
Alba appoints Hong Kong
Launch of Six-Sigma
Boris Santosi
- part of Alba
as the sales
SmartWay Operational
manager for its
Improvement Programme -
new European
supported by Rath & Strong
sales office in
Consultancy as well as an
Zurich, Switzerland
in-house core
team of specialists
in Six-Sigma
Annual Report 2011 | 12 13 | Annual Report 2011

9. 750
600
450
(US$ million)
Financial
300
Net Profit
150
368
564
Highlights
0
• Net Profit increased by 53%
to US$ 564 million
• This solid performance was largely
due to higher EBITDA levels and
2500 750 unrealised Derivative gains
• 53% Y-o-Y Growth
2000 600
1500 450
(US$ million)
(US$ million)
Revenues
1000 300 2500 300
EBITDA
500
1,997
2,349
150 2000 240
552
631
to Shareholders
0
Shareholders’
0 1500 180
Cash Payback
(US$ million)
(US$ million)
1000 120
• Revenues increased by 18%
Equity
• EBITDA (excluding
500 60
1,858
2,151
due to a healthy shift in LME, Product Mix one-time costs) sound performance
238
267
as well as Pricing Power was driven by higher Revenues 0 0
• The changes in the Product Mix are & record Production levels despite a
mainly due to an increase in Value-Added lower trend in Q4
Products and Liquid Metals with • 14% Y-o-Y Growth
a decrease in Commodity products • Shareholders’ Equity scored • Cash Payback to shareholders
• 18% Y-o-Y Growth US$ 2,151 million due to high levels of increased mainly because of higher
Net Profit resulting in an increase level of Free-Cash Flow (FCF)
in Retained Earnings • 12% Y-o-Y Growth
• 16% Y-o-Y Growth
750 1000
600 800
Free-Cash Flow
450 100 100
600
(US$ million)
(US$ million)
300 80 80
400
Net Debt
Leverage Ratio
150 60 60
200
Equity Ratio
495
606
899
613
0 40 40
0
20 20
(%)
53
62
48
28
(%)
• Free-Cash Flow amounted • Net Debt decreased by (32%) 0 0
US$ 606 million due to strong EBITDA compared to 2010
and outstanding Working Capital • This decrease is mainly attributed to
Management repayments of long-term loans • Total Assets remained almost • Leverage ratio improved due
• 22% Y-o-Y Growth and reduction in short-term Revolving flat compared to 2010 to a higher equity ratio
Credit as well as a net increase in • Shareholders’ Equity increased by and lower Net Debt
Cash & Cash Equivalent 16% resulting in an improvement
• -32% Y-o-Y Growth of the Equity ratio
Annual Report 2011 | 14 15 | Annual Report 2011

10. | Corporate
Governance
Corporate Corporate
governance practices
applied by the
Governance Company beyond
those required
by the law
Alba is
committed to Alba has adopted, and is committed
to implementing both the Corporate
Description both the Governance Code of the Kingdom of
of the Company’s 2010 Corporate Bahrain (the Code) issued in March 2010
administrative, management Governance Code by the Ministry of Industry and Commerce,
and supervisory bodies and and the Corporate Governance Module
their committees issued by Bahrain’s (the Module) of the Central Bank of Bahrain
Ministry of Industry (issued in July 2011). The principles
governing these frameworks are:
& Commerce, and
the 2011 Corporate • The Company shall be headed by an
Governance effective, collegial and informed Board;
• The directors and officers shall have full
Alba’s Board of Directors maintains
effective oversight of the Company
The Company is headed by a Chief
Executive Officer (CEO), who has four
Module issued loyalty to the Company;
by regularly monitoring key business Executives reporting to him (Chief Financial by the Central • The Board shall have rigorous controls for
financial audit and reporting, internal control,
activities and providing directives to the Officer, Chief Supply Chain Officer, Chief Bank of and compliance with the law;
Management. The Board has ten positions
(currently nine members, all of whom are
Marketing Officer and Chief Operations
Officer (currently also fulfilling the Chief Bahrain • The Company shall have rigorous procedures
for appointment, training and evaluation of the
external to the company’s management, Supply Chain Officer role). Each Executive Board;
plus one vacancy). The Board operates in has a number of Managers reporting • The Company shall remunerate directors
accordance with the laws of the Kingdom to him. The Company has a General fairly and responsibly;
of Bahrain, the Memorandum and Counsel/ Corporate Secretary, and a Chief • The Board shall establish a clear and efficient
Articles of Association of the Company, Internal Auditor and Risk Officer, who management structure;
its charter, and the ‘Levels of Authority’ report independently to the Chairman of • The Company shall communicate with
documentation. The Board of Directors the Board/ Chairman of the Board Audit shareholders, encourage their participation, and
respect their rights; and
has two sub-committees. The Board Audit Committee respectively.
Committee carries out the Board’s audit • The Company shall disclose its corporate
governance practices.
functions in accordance with the Board The CEO convenes a weekly executive
Audit Committee charter, and also has committee meeting, a weekly extended
The Company seeks where applicable, to
responsibilities for risk and corporate executive committee meeting of all
exceed the minimum requirements of the
governance. It has five members, each executives and selected managers, and a
Code and Module, and to implement the
of whom has a financial and/or audit monthly Safety, Health and Environment
additional recommendations and guidance
background. The Human Resources Executive Committee meeting consisting of
of the Code, as well as other international
Committee (HRC) carries out the Board’s all executives and selected HSE managers
best practice in Corporate Governance.
nominating and remuneration functions and professionals.
in accordance with the HRC Charter.
Following are some of the key
It has three members, all of whom are
improvements in Corporate Governance
external directors. Relevant members
instituted by the Company in 2011:
of management attend Board and sub-
committee meetings.
Annual Report 2011 | 16 17 | Annual Report 2011

11. | Corporate | Corporate
Governance Governance
Directors’ orientation/handbook – A
Director’s handbook consisting of key
documents and other content on directors’
responsibilities was created during 2011 to
serve as a reference guide for incumbent
General Counsel and HR Manager, and directors and to facilitate orientation of
which reports directly to the Board Audit new directors.
Committee. Monitoring tools include
an independently operated confidential Directors’ independence – In its 2011
hotline and reporting system that provides review of directors’ independence, the
for reporting in multiple languages by Board applied the new guidance from
phone and internet 24 hours a day, every the Central Bank of Bahrain as well as the
day. previously applied classifications set
Corporate Governance Guidelines - The out in the Code.
Board of Directors approved the Alba Independent external Board survey,
‘Corporate Governance Guidelines’ at evaluation and training - The Board Conflicts of Interest – Prior to 2011,
Alba’s December 2010 Board meeting. This arranged for an independent external policies were already in place prohibiting
document is fully aligned with the above Board survey and training workshop to a member of the Board of Directors from
Code, and was published on Alba’s website be carried out during 2011 by the GCC voting in any meeting, or participating
in early 2011. Board Directors Institute. Feedback from in any business operation or activity, in
the GCC Board Directors Institute on the which the member has a conflict of interest
Corporate Governance Report - The effectiveness of Alba’s Board and Corporate with the Company. In accordance with
Board presented the Company’s first Governance processes was very positive. the Code, abstentions are now required
‘Corporate Governance Report’ at Alba’s Actions are underway to implement During the to be minuted. In addition, the Company
41st Shareholders Meeting in March 2011.
This report, (also published on Alba’s
improvement recommendations that arose
from the survey and the workshop.
2nd quarter of updated its annual Directors’ declaration
and reporting process to list directorships
website), set out Alba’s compliance with the 2011, the Executive of all Bahraini companies even if no
Code and with the additional guidelines, Evaluation and assessment of the Board team launched conflicts are anticipated.
together with explanations for areas of non
application and required disclosures.
and its Committees – In 2010 and 2011,
the Board and its two standing sub- a new Code of CEO and CFO Certification of financial
committees, the Board Audit Committee Conduct, on a par with statements – The CEO and CFO now
Code of Conduct - In December 2010, the
Board approved a revised Code of Conduct,
and the HRC, conducted annual self-
evaluations and assessments using
leading international produce a memorandum certifying each
quarter’s financial statements, as well as the
setting out required ethical conduct for questionnaires and a discussion of gaps codes of ethics, year-end financials.
all employees of the Company. This Code,
which is on par with leading international
and areas of improvement. The results through a
codes of ethics, was launched across the
of the assessments by the sub-committees
were reported to the Board. comprehensive Ownership and trading of company
shares – Following the company’s dual
Company in June and July 2011 by the communication listing on the Bahrain Bourse and the
Executive team through a comprehensive
communication and training programme.
and training London Stock Exchange in November
2010, a process has been implemented
Compliance with the Code of Conduct is program to identify and report Directors’ and
monitored by Alba’s Integrity Task Force, Executives’ ownership and trading of
which comprises the Chief Internal Auditor, company shares. The Company has issued
Annual Report 2011 | 18 19 | Annual Report 2011

12. | Corporate | Corporate
Governance Governance
Main features of reviews changes to the risk profile, together
the internal control and risk with progress on actions for key risks on a
management systems quarterly basis;
in relation to the financial • Internal Audit function, working from
reporting process a risk-based annual internal audit plan
covering key controls. The audit plan,
budget, and methodologies are approved
and monitored by the Board Audit
Committee. On a quarterly basis, the Board
Audit Committee reviews and discusses the
internal audit findings, recommendations
policies on Key Persons Dealing/Insider The Board, through the Board Audit and agreed management actions, as well
Trading and circulated these to all directors, Committee, is responsible for ensuring a as progress made against prior audit
officers, and other key employees identified sound and effective control environment. findings. Additional private meetings are
by the Company, and has established, Monitoring of internal controls is provided held between the Board Audit Committee
for all directors and officers, quarantine through a number of internal and external Chairman and the Chief Internal Auditor
periods for trading in Alba shares. assurance providers, including: and Risk Officer;
• Audits carried out by the National Audit
Levels of Authority – In January 2011, • Statutory Audit by our External Auditors, Court, and by Shareholder Audit teams;
the Board approved an updated Levels of and discussion by the Board Audit • Board and sub-committee approvals
Authority document for the Company. This Committee of the results of the statutory and monitoring of Operating, Financial,
document defines the limits of approvals audit, including a review of the financial Manpower and other Plans; and
and decision-making authority designated performance, any changes to disclosure, • Executive and management monitoring
to specified positions of responsibility a subsequent events review, important activities (including the monitoring of Key
within the Company. accounting matters and other internal Performance Indicators).
control matters;
Succession plans – An annual review of • Review and formal approval of the Assurance is also provided through
succession plans for executives is now built financial results by the CFO, CEO, Board application of the Levels of Authority
into the Board agenda. Audit Committee and Board; document for financial transactions,
• Monitoring by the Risk Management which are also enacted through financial
team, of progress against agreed actions for reporting policies and procedures, and
financial and other risks identified through through IT controls in the financial
the application of Alba’s Board approved reporting system. The revised Code of
Enterprise Risk Management Framework, Conduct also sets out clear and specific
and with regard to the Risk Appetite set expectations for accurate financial
by the Board. The Board Audit Committee reporting.
Annual Report 2011 | 20 21 | Annual Report 2011

13. | Corporate | Corporate
Governance Governance
The cyclical
nature of the
Company’s
industry
has historically
meant that there results of operations and future prospects;
is significant • The Company’s business may be
affected by shortages of skilled employees,
aluminium (including management), labour cost
Principal risks price and inflation and increased rates of attrition;
and uncertainties faced demand • The Company depends on the provision
of uninterrupted transportation services
by the business volatility for the transportation of raw materials
and finished products across significant
distances. Prices for such services
(particularly for sea transport) could
increase;
• The Company has a number of hedging
We encourage you to carefully consider • Fire, equipment breakdown, civil strike contracts, and has historically experienced
the risks described below. Their occurrence or unrest, or loss of gas, power or other significant mark-to-market and realised
could have a material adverse impact utilities may result in loss of operational losses from certain of the Company’s
on our business, financial condition and capability or shutdowns for significant derivative positions;
results of operations, and could result in a periods; • The Company is exposed to foreign
decline in the trading price and liquidity of • The loss of either of the Company’s two currency fluctuations, which may affect its
our securities. Our systems of governance, largest customers, or its inability to recover financial condition;
internal control and risk management the receivables due from either of them, • There is a high level of competition
identifiy and provide responses to key risks or the long-term loan extended to one of in the GCC aluminium market, and the
through the establishment of standards them may have a material adverse effect on Company may lose its market share in
and other controls. Any failure of these its financial condition and future prospects; the GCC as its competitors increase their
systems could lead to the occurrence, or • The Company relies on third-party production levels;
re-occurrence, of any of the risks described suppliers for certain raw materials, and • The Company’s strategy includes growth
below. any disruption in its supply chain or failure and expansion of its operations, as well as
to renew these contracts at competitive cost savings initiatives, which may not be
• The cyclical nature of the Company’s prices may have an adverse impact on the achieved on time or on budget;
industry has historically meant that there Company’s financial condition, results of • The Company does not insure against
is significant aluminium price and demand operations and future prospects; certain risks, and some of its insurance
volatility, and a general production • The Company’s competitive position coverage may be insufficient to cover
overcapacity in the industry; in the global aluminium industry is actual losses incurred; and
• The Company has no control over a highly dependent on continued access to • Changes in laws or regulations, or
number of factors that affect the price of competitively priced and uninterrupted a failure to comply with any laws or
aluminium; natural gas supply. An increase in the price regulations, may adversely affect the
• The Company operates in an industry of natural gas, or interruption in its supply, Company’s business.
that gives rise to health, safety, security and could have a material adverse effect on the
environmental risks; Company’s business, financial condition,
Annual Report 2011 | 22 23 | Annual Report 2011

14. | Products
and Markets
Outlook in
2012
Europe
16%
Bahrain Although market demand will face some
48%
challenges as compared to 2011, Alba’s
capacity has been contracted for, and the
Products
company will aim to maximize its output
of Value-Added Products. Although the
Other overall market continues to be in a surplus
MENA
position, this is primarily on the commodity
and Markets
20%
ingot side whereas there is a shortage in
terms of Value-Added Products. Despite
some political uncertainties in key MENA
countries, market trends are positive and
well supported by infrastructure spending
as well as a housing boom.
Region
Highlights 2011 Despite the concerns related to European
for 2011 sovereign debt, which triggered cautious
inventory management, the clear pickup in
the US economy as well as in Japan should
Asia support demand in 2012.
16%
In terms of tonnage, overall market
trends have been positive through most
of 2011 with key fundamentals supporting
demand:
Casthouse 2011
• Prices of most competing materials Performance
remained high over the year relative to
aluminium and will continue to be so in Ingot
2012, helping to speed substitution effects 9%
(especially in the rod and cable market).
• Automotive and packaging downstream Billet The casthouses have maintained their
markets sustained their overall good 39% overall efficient performance:
performance in Europe and in Asia
• Billets production reached 332,406
supported by changing life-styles and
metric tonnes - up by 6% from 2010;
urbanisation. Slab foundry alloys output was 91,523 metric
• Chinese consumption and production 14%
tonnes (slightly behind 2010) while slab
have increased dramatically, and in parallel,
volumes increased to 127,255 metric
although China is bound to become a net
tonnes - up by 11,615 metric tonnes from
importer.
the previous year.
• The slowdown in Q4 was a severe
• Overall Value-Added Production was
reaction to perceived risks in financial
549,185 metric tonnes - higher by 3%
markets and the slowdown in Europe, but
as compared to 2010.
should be temporary
• The LME trend has been bullish, with an
annual average of US$2,398.29 per metric
Product
2011 Foundry
tonne even though Q4 cash average settled 10%
at US$ 2,089.18 per tonne.
Liquid
28%
Annual Report 2011 | 24 25 | Annual Report 2011

15. | Products
and Markets
Our downstream markets are producing
a variety of products:
• Our liquid metal is sold to various
Bahraini industries, but most significantly
Downstream to MIDAL, one of the world’s leading cable
Markets and rod manufacturers.
• Our billets are sold to Aluminium
extruders, who are using the versatile
properties of aluminium alloys to create
profiles in all shapes and sizes that are
mainly used in building applications,
such as window frames or structural
components. A growing share of
aluminium profiles is also used in cars or
vehicles where light weighting is becoming
a priority. Aluminium components give
shock absorption as well as mechanical
strength capabilities with less weight
than the equivalent properties of pieces
produced in steel.
• Our slabs are used by rolling mills to
produce foilstock which is then rerolled
into household foil or packaging material
used in food or pharmaceutical industries.
H.M. King
Other types of slabs are rolled into plates or Hamad Bin
sheets used in the general engineering and Isa Al Khalifa
building industries.
• Our foundry alloy ingots are used by
toured the
automotive components manufacturers to Casthouse
produce cast wheels or engine blocks. in 1993
Annual Report 2011 | 26 27 | Annual Report 2011

16. | Health,
Safety and
Environment
Health,
Safety and
Environment Alba
SafeWay
Alba’s role as a transformational Alba recognises that to be a world The launch in 2011 of the Alba SafeWay
leader is demonstrated through its track leader in workplace safety, health and project in partnership with DuPont
Alba recognises record in the areas of health, safety and environmental management systems, Sustainable Solutions began with an
that to be a world leader environment. The primary incentive for
this success has been the priority given,
visionary statements must translate into
concrete action plans; hence, 2011 has
objective of achieving zero incidents
causing physical harm throughout the
in workplace safety, health throughout the forty years that Alba has been marked with a series of initiatives that organisation. It sets out to define the state
and environmental been in operation, towards developing have brought the company a step closer of Alba’s safety culture, shape employee
management systems, a safe work environment – one that will
benefit both employees and the wider
towards actualising these goals. behaviour and analyse the effectiveness of
current HSE management systems as well
visionary statements must community. In 2011 Alba restructured to create the as their level of implementation across the
translate into concrete As one of the world’s largest aluminium
Health, Safety & Environment (HSE)
Department, streamlining all activities
company.
action plans smelters and a regional pioneer in under its scope in order to provide strategic The first phase of the project involved a
aluminium production, Alba regards direction to raising Alba’s global profile as a Safety Perception Survey, which helped
this safety focus as critical to its being responsible company in these matters. assess attitudes and perceptions that Alba
recognised as a responsible industrial employees held towards safety, and also
organisation. It has also paved the way in to measure the maturity level of the safety
formulating the company’s work culture, culture that exists within the company.
defined the way the company conducts With a total of 2,014 employees taking part
its operations, and set the safety in the survey, the results clarified overall
parameters for the various processes strength in leadership, structure, process
currently deployed in producing Alba’s and actions in relation to developing a
high grade aluminium products. company wide safety culture.
Annual Report 2011 | 28 29 | Annual Report 2011

17. | Health, | Health,
Safety and Safety and
Environment The HSE Department Environment
conducted year-round safety
awareness campaign to
encourage safe behaviour Health
amongst employees Watch
The second phase – which began in Among other initiatives undertaken in
October 2011 – laid the groundwork for the 2011, the HSE Department conducted a
introduction of new safety principles. Some year-round safety awareness campaign
of its main features were: encouraging to encourage safe behaviour amongst
a proactive approach in preventing employees. The campaign elements Alba remains at the forefront of ensuring
work related injuries, emphasising the included safe driving, guarding against that employees benefit from a safe work
responsibility of company leaders in heat exhaustion, safe use of tools, and environment that enables them to be
demonstrating safe behaviour through general promotion of good health healthy and productive. At the centre
their example, considering compliance campaign, amongst others. of Alba’s occupational health initiatives
with safe procedures and values to be is the Alba Health Centre that is widely
non-negotiable, correcting any deviations Extending the campaign’s focus towards regarded as one of the most advanced
immediately, learning from incidents to an external audience as part of a policy medical facilities available in any industrial
prevent recurrence, etc. of engaging with the community, school organisation in Bahrain.
visits were conducted to impart the
As a means to put these principles into importance of safety amongst the young One of the highlights of 2011 was the Heat
action, the development of an Alba safety as well as provide on-the-job training for Stress Standard that was launched during
improvement framework started with the students at the HSE Department, through a workshop in the summer. As a proactive
formation of relevant sub-committees to a sponsorship agreement signed with method in safeguarding Alba employees
manage and implement safety policies and Tamkeen. from severe heat exhaustion, it involved
procedures. A Central Safety Committee raising awareness of heat severity through
with six sub-committees along with a Alba’s involvement in the Gulf Aluminium daily communication of the current heat
stand-alone Communication & Campaign Council HSE Committee in 2011 was index. This was the first such programme
Committee were set up to ensure that reflected through its contribution and undertaken in Alba’s 40-year history, and it
the programme remains sustainable and participation in activities that included proved to be highly effective in mitigating
achieves the required standard. exchange of best practices, safety the hazards of extreme summer heat.
standards, plant visits, audits, etc.
As well, studies were undertaken to assess
Alba continued to maintain the the health benefits of using face-masks at
requirements of its OHSAS18001 certificate the pot lines, and in the second half of the
after due verification by a third party. year, its usage was made mandatory.
HSE training programmes for Alba Among the company wide health
employees were strengthened in 2011 campaigns launched in 2011 were those
and were mostly conducted by in-house addressing manual handling, ergonomics,
experts who benefited from exposure to heat exhaustion, noise pollution, etc.
Leadership related academic programmes, seminars,
in Safety conferences and plant visits in 2011.
Many of the department staff are certified
NEBOSH holders and will be given the
opportunity to pursue higher studies –
including PhD – to improve and enhance
their knowledge.
Annual Report 2011 | 30 31 | Annual Report 2011