Al Bhatti
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24 September 2014
Studies complete on $3 billion alumina refinery
GCC accounts for 3.75% of the world’s aluminium production
Feasibility studies have been completed for the establishment of an alumina refinery in Abu Dhabi, estimated to cost $3 billion, said the CEO and managing director of Emirates Global Aluminium, Abdulla Kalban.
The refinery will produce two million of alumina in the first phase and double its output to four million metric tonne in the second phase. The project will be operational by the end of 2017, Abdulla Kalban said.
Alumina, which is used to produce primary aluminium, is extracted from bauxite in the refining process. Emirates Global Aluminium, is a largest industrial merger, which was formed last year when the UAE’s Mubadala Development Company owned Emirates Aluminium or Emal and Dubai Aluminium or Dubal joined hands. EGA has an enterprise value of $15 billion.
Opening the 29th Metal Bulletin International conference in the capital on Tuesday, Suhail bin Mohammed Faraj Faris Al Mazrouei, Minister of Energy, said that the UAE has spent $10 billion on the aluminium industry in seven years, which reflects the confidence it has in the industry’s huge potential.
On the formation of world’s one of the largest aluminium company, EGA, the energy minister said it reflects the long-term strategy of the nation to diversify its oil-based economy and provide a secure, prosperous future for the youth; adding lasting and sustainable value. By 2018, EGA’s contribution to the UAE’s GDP is forecasted to be approximately $6 billion, the minister said.
The company already employs over 7,000 people, with an additional 2,000 jobs to be created by the end of this decade.
“And direct employment will not be the sole benefit of the investment, with the development of projects such as the Kizad industrial complex, the downstream aluminium cluster will also grow creating an estimated 25,000 jobs by 2020,” the minister said.
Emirates Global Aluminium’s two units currently produce 2.4 million tonnes of aluminium products per year.
The UAE accounts for about 50 per cent of the Gulf’s annual aluminium production of five million tonnes and is the world’s fourth largest producer of the metal, Kalban said.
The CEO and managing director of EGA predicted that Emirates Global Aluminium would boost its production by only about 200,000 tonnes over the next six years. The outlook for rising demand was solid, he said. In 2013, the aluminium industry in the GCC accounted for 3.75 per cent of the world’s aluminium production, which is set to grow to nine per cent in 2020, with the ambitious plans EGA has for the sector in the country.
“Global demand growth is forecast to sustain at about 5.8 per cent per year till 2020, so we are confident about demand.”
About 90 per cent of the UAE’s aluminium production is exported to 68 countries, he said.
Business - Studies complete on $3 billion alumina refinery
Studies complete on $3 billion alumina refinery
GCC accounts for 3.75% of the world’s aluminium production
Feasibility studies have been completed for the establishment of an alumina refinery in Abu Dhabi, estimated to cost $3 billion, said the CEO and managing director of Emirates Global Aluminium, Abdulla Kalban.
The refinery will produce two million of alumina in the first phase and double its output to four million metric tonne in the second phase. The project will be operational by the end of 2017, Abdulla Kalban said.
Alumina, which is used to produce primary aluminium, is extracted from bauxite in the refining process. Emirates Global Aluminium, is a largest industrial merger, which was formed last year when the UAE’s Mubadala Development Company owned Emirates Aluminium or Emal and Dubai Aluminium or Dubal joined hands. EGA has an enterprise value of $15 billion.
Opening the 29th Metal Bulletin International conference in the capital on Tuesday, Suhail bin Mohammed Faraj Faris Al Mazrouei, Minister of Energy, said that the UAE has spent $10 billion on the aluminium industry in seven years, which reflects the confidence it has in the industry’s huge potential.
On the formation of world’s one of the largest aluminium company, EGA, the energy minister said it reflects the long-term strategy of the nation to diversify its oil-based economy and provide a secure, prosperous future for the youth; adding lasting and sustainable value. By 2018, EGA’s contribution to the UAE’s GDP is forecasted to be approximately $6 billion, the minister said.
The company already employs over 7,000 people, with an additional 2,000 jobs to be created by the end of this decade.
“And direct employment will not be the sole benefit of the investment, with the development of projects such as the Kizad industrial complex, the downstream aluminium cluster will also grow creating an estimated 25,000 jobs by 2020,” the minister said.
Emirates Global Aluminium’s two units currently produce 2.4 million tonnes of aluminium products per year.
The UAE accounts for about 50 per cent of the Gulf’s annual aluminium production of five million tonnes and is the world’s fourth largest producer of the metal, Kalban said.
The CEO and managing director of EGA predicted that Emirates Global Aluminium would boost its production by only about 200,000 tonnes over the next six years. The outlook for rising demand was solid, he said. In 2013, the aluminium industry in the GCC accounted for 3.75 per cent of the world’s aluminium production, which is set to grow to nine per cent in 2020, with the ambitious plans EGA has for the sector in the country.
“Global demand growth is forecast to sustain at about 5.8 per cent per year till 2020, so we are confident about demand.”
About 90 per cent of the UAE’s aluminium production is exported to 68 countries, he said.
Business - Studies complete on $3 billion alumina refinery
