World’s biggest aluminium plant planned in Abu Dhabi

Dubal teams up with Mubadala Development in plan to produce 1.2 billion tonnes per year in UAE

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By  Conrad Egbert Published  February 25, 2006

Dubai Aluminium (Dubal) has teamed up with Abu Dhabi’s Mubadala Development to build a US $6 billion aluminium plant, which will be the largest in the world. Currently, the world’s largest plant is Russian Aluminium’s Bratsk smelter in Siberia. The new 2600 mW power plant will be built at the Khalifa Port and Industrial Zone in Taweelah in Abu Dhabi and will produce 1.2 million tonnes of aluminium a year. “There is ample room for additional capacity on the back of strong international demand,” said Abdullah Kalban, CEO of Dubal. The smelter will be developed in two phases, with the first phase expected to be operational in 2010. The front engineering and design studies are scheduled to be completed in 2007 after which the two entities will jointly develop, construct, own and operate the complex in Taweelah. Plans are already under way to establish a joint company with 50% stake each for Mubadala Development and Dubal. The joint company will oversee the operation and management of the new aluminium smelter. Other countries in the region including Saudi Arabia, Qatar and Oman are also investing billions of dollars to build aluminium smelters to capitalise on the readily available cheap gas and low labour costs. Mubadala Development is an investment company — owned by Abu Dhabi’s ruling Al Nahyan family — which is investing the oil revenues into infrastructure and energy projects across the emirate. Dubai plans to increase its aluminium production capacity at its existing Jebel Ali smelter by at least one-third by 2010 to more than one million tonnes a year, mainly to service additional demand from China.

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