Dow Jones reported that BHP Billiton PLC is moving its alumina pricing away from the traditional method of benchmarking it as a percentage of the London Metal Exchange aluminum price.

Mr Jon Dudas president Aluminum BHP Billiton said that “BHP Billiton is present in the integrated chain but we strive to price products in their respective markets for example, price alumina on demand supply fundamentals of that industry rather than linked to LME."

Alumina contracts are usually priced at between 11% and 14% of the LME aluminum price.

BHP Billiton is the world's 4th largest producer of bauxite and 4th biggest aluminum producer based on third party sales. According to its equity share in its operations, BHP Billiton's bauxite mines have the capacity to produce 17.3 million tonne of bauxite while its alumina refinery capacity is 5.2 million tonnes. The miner has an equity capacity of 1.34 million tonnes of aluminum with smelters in South Africa and stakes in plants in Argentina and Mozambique.

(Sourced from Dow Jones)