Dubai Aluminium Company (Dubal) has announced major developments involving an expansion in capacity and the taking of a stake in a Canadian firm.

The company is preparing to raise its production capacity to 861,000 tonnes per year.  In the other development, Dubal  will buy a 25 per cent stake in Canada-based Global Alumina Corp as part of a planned $200 million investment that will help the Canadian firm develop a major metal refinery project in Africa.
Initially, Dubai will buy 10 million shares at $2 each, with more purchases planned, a report said.
The UAE-based Dubal will eventually buy up to $200 million worth of shares in the Canadian company, said Global Alumina.
Dubal owns and operates one of the largest aluminium smelters in the western world. It will help back development, financing and construction of Global Alumina’s 2.8 million tonne per year alumina refinery in Boke, Guinea.
That project is slated for completion by 2009.
“It is quite fitting that Dubai Aluminium becomes Global Alumina’s first strategic equity partner,” said Bruce Wrobel, chairman and CEO of the Canadian company.
“Dubal is delighted to be entering into an association with Global Alumina Products Corporation, with a view to establishing an alumina refinery in Guinea. Dubal’s involvement in this project will be in line with its strategic objective of upstream integration to achieve security over raw material supply and to develop a major presence in the aluminium industry,” said Abdulla Kalban, CEO of Dubal.
The closing of the transaction is subject to certain conditions, including regulatory and shareholder approval.
On the expansion, Dubal said construction would start soon.  The project is scheduled to be completed by the end of next year. Up to 40 per cent of the contracts will be awarded to local contractors.
Shaikh Hamdan Bin Rashid Al Maktoum, Deputy Ruler of Dubai, UAE Minister for Finance and Industry, and Chairman of Dubal, approved the massive capacity expansion of the existing smelter to meet growing customer demand.
Shaikh Hamdan said: “Dubal’s current expansion project will act as a stimulant to inject more dynamism to the industry in the region.
“Consequently, it will make Dubai, the UAE and the region a major powerhouse in the global aluminium industry.”
Currently, with 120 pots in Potline-7 fully commissioned, Dubal’s total production capacity will reach 761,000 tonnes per annum by the end of this year. This project is Phase I of a three-phase expansion plan which forms part of Dubal’s long-term strategy, officials said.
A state-of-the-art technology fume treatment system, costing Dh110 million, will be installed as part of the expansion.
An environment impact study is currently underway.
Ahmad Humaid Al Tayer, vice-chairman, said, “We are looking at nearby regions to strengthen our market base. Thus, Dubal’s risk diversification efforts will ensure that we maintain our international position as a major and serious player in size and market penetration.”
The current expansion will result in 13 per cent additional hot metal production a year. The internal rate of return works out to around 16 per cent a year and the payback period is expected to be six years, said officials.
Abdullah J M. Kalban, chief executive officer, said: “Dubal will use its own in-house-developed D20 technology for the expansion project. The project will add 128 cells more to the recently completed Potline-7, bringing the total to 248 cells. Potline-7 currently has 120 cells, which went fully operational recently.
“Plans are also afoot to add another 36 cells to Potline-9, which was completed in 2003, once again bringing the total cells for this potline to 248,” he added.