BHP Billiton PLC (BHP) is moving its alumina pricing away from the traditional method of benchmarking it as a percentage of the London Metal Exchange aluminum price, the company's aluminum division President said Thursday.

In a presentation on the U.K.-listed miner's Web site, Jon Dudas outlined BHP Billiton's pricing strategy going forward.

"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," he said.

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

BHP Billiton is the world's fourth-largest producer of bauxite and fourth 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 metric tons of bauxite, while its alumina refinery capacity is 5.2 million tons.

The miner has an equity capacity of 1.34 million tons of aluminum, with smelters in South Africa and stakes in plants in Argentina and Mozambique.

-By Andrea Hotter, Dow Jones Newswires; +44 (0)20 7842 9413; andrea.hotter@dowjones.com