Dubai Aluminium sets import records through Jebel Ali Port

Combined strategic raw material requirements for aluminium giant and its subsidiary in the UAE push procurement volumes to new heights

The annual value and volume of strategic raw materials imported by Dubai Aluminium Company Limited (DUBAL) through Jebel Ali Port reached record levels in 2009, boosted largely by the procurement of materials for Emirates Aluminium Company Limited PJSC (EMAL) the high-tech green-field aluminium smelter development in Al Taweelah, Abu Dhabi, in which DUBAL holds a 50 per cent share and where Phase I is currently in ramp-up stage.

So says Masoud Talib Al Ali (Vice President: Supply), who explains that in terms of a Supply Service Agreement (SSA) between the two companies, DUBAL is currently responsible for sourcing, procuring and managing the logistics relating to the strategic raw materials required by EMAL all of which are imported. EMAL Phase I has been under construction since 2007. The core smelter operation comprises 756 electrolytic reduction cells in two potlines, the construction of which demanded a large volume of materials for cell lining (cathode bars) and anode purposes, specifically calcined petroleum coke and liquid pitch. Then, energizing of the first cells at EMAL and the production of the first metal took place in December 2009, heralding the start of substantial import volumes of alumina. As governed by the SSA, we expect to import 650,000 metric tonnes of calcined petroleum coke, 150,000 metric tonnes of liquid pitch and 3.5 million metric tonnes of alumina every year on behalf of both DUBAL and EMAL, for the three-year period from 2010 to 2012.

These volumes are over and above the US$1 billion in strategic raw materials imported each year by DUBAL through Jebel Ali Port for use in the companys existing 1,573-cell, eight potline smelter in Jebel Ali, Dubai, which has an annual hot metal production capacity of 980,000 metric tonnes. Our Jebel Ali complex is home to one of the largest single-site aluminium smelters in the world and we procure a wide range of strategic raw materials from various sources around the globe so as to ensure uninterrupted supply for our operations, continues Al Ali. Some 40- to 50 per cent of our total strategic raw material imports each year comprise alumina, the balance comprising calcined petroleum coke, liquid pitch, baked anodes, aluminium fluoride, potlining materials, process materials and refractory items.

Al Ali contends that the combined imports of DUBAL and EMAL represent the highest volume of raw materials imported through a single site smelter. Moreover, the entire volume is processed single-handedly through DUBALs Port and Materials Handling facilities, which ships EMALs material requirements to the EMAL site in Al Taweelah by road tanker. In readiness for the ongoing alumina requirements of EMAL Phase I, a 70,000 metric tonne EMAL alumina silo is currently under construction within the area dedicated to DUBAL at Jebel Ali Port, as is a 20,000 metric tonne calcined petroleum coke silo.

As a joint shareholder in EMAL (Mubadala Development Company holds the remaining 50 per cent), DUBAL has a vested interest in supporting this operating subsidiary by leveraging our existing procurement infrastructure, adds Al Ali. We have developed a strong network of suppliers over the 30 years since DUBAL began operating in 1979, and have a well-established Supply Division staffed by talented buyers with exceptional negotiation skills. The combination, together with the substantial procurement volumes, places us in a solid position to secure optimum prices and on-time deliveries.