World's largest smelter plan still on track, says CEO

Emirates Aluminium remains committed to building the world’s largest smelter in Abu Dhabi despite falling prices and mounting stockpiles of the metal according to a top official at Dubai Aluminium.

“Demand of course is falling worldwide because of the credit squeeze, but our projects are on track, especially our project in Abu Dhabi,” Dubai Aluminium CEO Abdulla Kalban, told reporters in Dubai late on Sunday.

Emirates Aluminium, a joint venture between Abu Dhabi’s Mubadala Development and Dubai Aluminium, is building the plant in Taweelah, Abu Dhabi.

The price of aluminium plummeted 17 percent in October, the biggest monthly drop in nearly two decades, amid fears that a global recession would reduce demand for the metal.

The Dubal board will meet next month to review 2009 production targets amid slowing global demand.

Global stockpiles of aluminium have risen from about 900,000 tonnes to 1.6 million tonnes over the past year and could reach 2 million tonnes by 2009, Kalban said.

He added that the first phase of the Emal smelter would start production by the first quarter of 2010 and that a feasibility study for the second phase was already underway and would be completed “within six to nine months”.

Middle East Economic Digest reported last month that the second phase of the project had been put on hold because of tough market conditions.

Dubal also plans to increase exports to Europe and is opening new offices as it aims to double exports to about 400,000 tonnes by 2013.