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Dubal signs $6b deals

The two landmark agreements, which also envisage to develop downstream projects besides harnessing overseas opportunities in the Gulf and Middle East, and North Africa region, were signed at a ceremony at the Emirates Palace Hotel.

General Shaikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, Chairman of Abu Dhabi Executive Council and Chairman of Mubadala Development, and Shaikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai, UAE Minister for Finance and Industry, and Chairman of Dubal were also present on the occasion.

The JP was signed by Mohammed Al Bowardi, Vice-Chairman, MDC and Ahmed Humaid Al Tayer, Vice-Chairman, Dubal while the JDA was signed by Khaldoon Khalifa Al Mubarak, CEO, Mubadala Development, and Abdullah Jasim Kalban, CEO, Dubal.

Khalifa Al Mubarak said the JP would lay down the foundations for the two companies to develop projects in the aluminium industry and for joint exploration of business opportunities in upstream, production and marketing aspects of aluminium industry. Besides, it will also promote the development of downstream businesses.

He said that the JDA entails construction and operation of a more than $6 billion world class green-field aluminium smelter complex with 1.2-million tonne capacity a year and related facilities at Taweelah in Abu Dhabi. This will make it the largest single site aluminium smelter in the world.

The two entities will jointly develop, construct, own and operate the complex at the Khalifa Port and Industrial Zone in Taweelah, Mubarak said.

Abdullah Jassim Kalban said that the smelter will be developed in two phases and the first phase is expected to be operational in 2010. He said the plans are under way to establish a joint company with 50 per cent stake each for the two companies, to set the first project which will have 70 per cent debt financing while remaining would be equity. The national banks will finance the project.

He said the JP provides the basis for Mubadala Development and Dubal will explore various investment opportunities along the entire aluminium supply chain such as alumina production, investment in existing production capacity and joint development in green-field smelters in the Middle East and North Africa (MENA) region.

"We will tap every possibility of investment in the aluminium sector and other in which we have a competitive advantage, any where," he added. He said a joint steering committee has already been formed to look into the possible business opportunities and to study the creation of a UAE-based centre for excellence, research and development in aluminium industry.