DUBAL, MUBADALA JV TO DEVELOP ALUMINUM SMELTER IN SAUDI ARABIA

ABU DHABI, Jan 31 Asia Pulse - Dubai Aluminum Company Limited 'DUBAL' and Mubadala Development Company 'Mubadala' Wednesday signed a Memorandum of Understanding (MoU) with Saudi Arabia General Investment Authority (SAGIA) and Emaar Economic City (EEC) regarding the green-field development of an aluminum smelter complex in King Abdullah Economic City, Saudi Arabia. The planned US$5 billion-plus project will entail feasibility and environmental impact studies prior to the development and construction of the proposed aluminum smelter complex and associated infrastructure. EMAL International, a joint vehicle owned equally by DUBAL and Mubadala will be managing the planned project. The initial production design capacity of the proposed smelter will be approximately 700,000 metric tonnes per annum (mtpa), complemented by a purpose-built power utility capable of providing a guaranteed, uninterrupted long-term supply of the power required to properly and fully operate the proposed smelter. EMAL International is uniquely positioned to feature DUBAL's proprietary smelter technology, superior industry knowledge and best-in-class practices in the areas of health, safety and environment. This combined with Mubadala's expertise in structuring and financing multibillion dollar projects provides EMAL International with the knowledge and tools to deliver the planned project. "Both Mubadala and DUBAL enjoy the capabilities and resources to design, implement and run a project of this magnitude. The combined strengths of our two companies will ensure the delivery of a world-class project", stated Khaldoon Khalifa Al Mubarak, CEO and managing director of Mubadala. "DUBAL's involvement in this project is extremely gratifying, as it pays tribute to the wealth of experience and advanced technologies developed by our company over the past 28 years", said DUBAL CEO, Abdulla Kalban, adding that "our investment in the project would also be rewarding, as the additional aluminum production from the proposed smelter complex in Saudi Arabia would help us realise DUBAL's vision of becoming one of the world's five largest aluminum producers by 2015." It is estimated that the project could create about 2,500 direct employment opportunities within the completed smelter complex; as well as spawning a substantial number of indirect employment opportunities (a multiplier effect of approximately two times is anticipated). Moreover, the smelter project would strongly boost EEC's drive to develop industrial zones within the King Abdullah Economic City, ultimately attracting downstream investments in the aluminum industry, and resulting in further job creation and GDP development for the Kingdom of Saudi Arabia. SAGIA will endeavour to secure a long-term supply of gas or alternative liquid fuel for the proposed smelter; and has expressed its commitment to supporting the hiring and training of a Saudi workforce for the project. The knowledge, experience and skills of expatriate workers would be leveraged in commissioning and initial operation of the smelter complex, with a view to the transfer of the requisite skills to the Saudi workforce. EEC has indicated its willingness to identify a 4- square-kilometre site within the industrial zone of King Abdullah Economic City that is not only suitable for the development of the smelter, but which also offers good access to suitable deep water port, utilities and all road transport links. Should the project go-ahead, EEC would also help provide temporary and permanent accommodation for the construction and project personnel; and would include adequate healthcare facilities, schools and other social infrastructure requirements in the overall development of King Abdullah Economic City.