Dubal in JV With Vale to Set Up Brazil Plant

DUBAI - Dubai Aluminium Company Limited has entered into an agreement with Vale, the world’s second-largest metals and mining company, to develop a green-field alumina refinery in Brazil’s northern State of Pará.



By Issac John

Published: Fri 17 Apr 2009, 11:47 PM

Last updated: Thu 2 Apr 2015, 3:38 AM

Under the agreement, Dubai Aluminium Company, or Dubal, will hold a 19 per cent equity stake in the joint venture company, Companhia de Alumina do Pará (CAP); Vale will hold 61 per cent and Hydro Aluminium 20 per cent, Dubal said in a statement.

The Dubai based company, ranked as the world’s largest modern aluminium smelter with a captive power station, however, did not reveal the cost of the project, and said the transaction was subject to the fulfillment of certain customary conditions.

CAP will be responsible for the implementation and operation of an alumina refinery located in Barcarena. The initial production capacity will be 1.86 million tonnes per year of alumina, through two lines, each of 930,000 tonnes per year. Future capacity expansions at this refinery have the potential to reach up to 7.4 million tonnes per year. The start-up of the first phase is scheduled for the end of 2012.

Dubal, built on a 480-hectare site in Jebel Ali, has the capacity to produce more than one million metric tonnes of high quality finished aluminium products a year. The company’s products come in three main forms: foundry alloy for automotive applications, extrusion billet for construction purposes and high purity aluminium for the electronics industry.

Last week, the Dubai based smelter announced a 16 per cent rise in profit to Dh2.21 billion for for 2008. Dubal’s production rose 0.4 per cent to 945,000 tonnes in 2008. Sales in 2008 increased to Dh9.115 billion in 2008 from Dh8.007 billion in 2007, the company said at its recent the annual general meeting.

According to Abdulla Jassem bin Kalban, CEO of Dubal, the company’s output this year would be steady at around 950,000 tonnes. Dubal plans to bring the first phase of its joint venture Emirates Aluminium, Emal, billed as the world’s largest single aluminium smelter, online in December. It has a capacity of 700,000 tonnes per year.

Emal is a 50-50 joint venture between Dubal and Mubadala Development Company, an investment vehicle owned by the government of the emirate of Abu Dhabi. It will eventually have the capacity to produce 1.4 million tonnes per year and would come fully online between 2013-2014. The budget set for first phase is $5.6 billion and the second phase should cost the same or slightly less.

issacjohn@khaleejtimes.com


More news from Business