$5.8bn smelter will make UAE global powerhouse

HOT STUFF: The proposed aluminium smelter in the UAE will help move the country away from dependency on oil, gas exports. (Getty Images)

The development of the world’s biggest aluminium smelter in the UAE will signal the country’s arrival as one of the global powerhouses for production, the chief executive of the project said on Wednesday.

When the first phase is up and running in April 2010, the $5.8 billion smelter will be responsible for two to three percent of total aluminium production in the world, producing 700,000 metric tons a year and will open the way for the diversification of the UAE export market away from oil and gas.

From its six square km base in Khalifa Port and Industrial Zone in Taweelah, the smelter will help encourage further industrial growth in the area, such as the establishment of foundries, Duncan Hedditch, CEO of Emirates Aluminium Co (Emal), said.

A joint venture between the governments of Abu Dhabi and Dubai, the cost of the smelter has risen from $5.67 billion as the site is bigger than first planned.

So far $2.9 billion and four million man hours have been spent developing the operation with the 4,000-strong workforce expected to swell to 14,000 at the height of the construction project.

“It’s significant in terms of the global aluminium industry,” said Hedditch. “The Middle East is starting to become one of the global hubs for aluminium because of energy. Aluminium smelters have long life spans of 50 years plus and can only be built where there’s a long-term guarantee of energy, so where there’s natural gas in the Middle East or hydropower in places like Russia.

“It’s important for Dubai because it represents the next industrial expansion and for Abu Dhabi it’s a major industrial and commercial project and represents a significant move towards alternative exports to oil and gas. We expect the bulk of the material to be exported.

“This project is going to be built to the best environmental standards, so not only is it big but it will be squeaky clean too. We have spent a lot of money on getting the best emissions and production efficiencies.”

Hedditch said the scheme has had to overcome the challenge of securing raw materials and workers.

“The technology is proven but given the logistics in building such a large construction project there’s quite a big effort involved in securing materials like concrete and steel and workers,” he said.

“It’s a large construction challenge rather than a technical challenge but so far we are on track. We have had to work hard to get the turbines to power it and getting cranes as the crane manufacturers are busy.”

Around 2,000 workers will be employed in the first stage of the operation and 3,000 staff once production reaches full capacity.

World demand for aluminium is expected to be in the range of 46 million metric tonnes by the year 2011.

When both phases of the smelter are complete in 2013, it will be the largest single-site aluminium smelter in the world. Phase two will see initial aluminium production capacity stepped up to 1.4 million tons per annum.

The smelter will consist of four units called potlines, each with sufficient electrolytic production cells to make the aluminium.

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READERS' COMMENTS

EMAL Gas Supply
Posted by Rosine Feghali, Abu Dhabi, UAE on Monday 15 September 2008 at 11:28 UAE time


EMAL has already secured and signed a contract with the Abu Dhabi Government guaranteeing the supply of gas for the facility for 1.4 million tonnes of aluminium per annum. EMAL’s use of advanced local technology was fundamental to securing its gas supply from the government and its production will start in 2010.

Smelter in UAE
Posted by A K, Calgary, Canada on Wednesday 27 August 2008 at 20:23 UAE time

Where will they get the natural gas from? Supplies are very tight. Rio Tinto just cancelled a $3 B smelter in Abu Dhabi for that reason.

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