EMAL Plan to Invest 4 Billion Dollars on Building a New Smelter

News from New York said that EMAL plan to invest 4 billion on the construction of the biggest aluminum smelter through loan and bond. Someone who doesn’t want to give his name said that this company plan to raise 2 billion dollars in 10-15 years. EMAL is combined by Mubadala Development Co., Ltd and Dubai Aluminum Co., Ltd. Chief Operation Officer of Mubadala Development Co., Ltd said in April that 70% of the fund will raise by loan and Citigroup will offer some help. In May, EMAL declare the first project will cost about 5 billion US dollars; the second phase project will cost 3 billion US dollars. Golf countries are investing hundreds of millions on building new smelters, to fully utilize the abundant natural gas resource and low cost labors. In aluminum processing, electricity cost takes up 29% of the whole cost, in America and Europe, the price of electricity is much higher than in Mid-east, so its profit is much lower. In May, EMAL declare that the first project can yield 700,000 ton products; it will put into product in the year 2010. It is estimated the output will be doubled when the second project completed. The two companies have no response on this.