Dubai Aluminium Co, the developer of the world’s largest smelter of the metal, is seeking to mine bauxite in Guinea in partnership with BHP Billiton Ltd, as well as sourcing the raw material from Cameroon and India.
“One of our projects is in Guinea together with BHP Billiton,” Sultan Al Sabri, general manager of marketing and sales, said in Barcelona on Tuesday. “We’re looking at Cameroon.”
Talks in Orissa, India, “didn’t really move forward much because of lack of support from local officials,” he said.
The company’s Emirates Aluminium Co joint venture with Abu Dhabi state-run investor Mubadala Development Co will double annual capacity to 1.5 million metric tons by March 2015, chief financial officer Bill Campbell said in an interview.
Aluminum producers are seeking to secure sources of raw materials as costs increase, squeezing margins.
Gulf states also aim to develop aluminum production as they diversify away from oil and gas exports, and demand for the metal climbs.
Dubal may combine with its joint venture under a holding company. “Cooperation and synergy between the two companies is aimed at bringing benefits of technology, production and marketing of the metal under one roof,” Campbell said. Mubadala may also buy a stake in Dubal, he said, declining to elaborate.
Dubal has marketed about 1.7 million tons of aluminum to be produced by the two companies this year, Al Sabri said. “The market is strong and stable for the next few years,” he said.For all the latest industry news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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