Alcan has announced it is taking a 20 per cent stake in a $1.7 billion primary aluminium smelter in Sohar, Oman, and would proceed with the construction of the project together with its partners, Oman Oil Company (OOC) and Abu Dhabi Water and Electricity Authority (Adwea).
The 350,000 tonnes per year (tpy) smelter, which is expected to begin production in the third quarter of 2008, will be in the lowest quartile of the industry cash cost curve and add approximately two per cent to Alcan’s global smelting base.
The state-of-the-art smelter will demonstrate Alcan’s technology and cost leadership, operational know-how and management expertise and will, over the smelter’s life, promote the strong technical and economic development of the region.
The smelter’s initial scope will be based on a single AP35 potline, but with provisions for adding a second pot line - of which Alcan has an option to acquire up to 60 per cent. The use of proven AP35 technology represents the first time that it is being used in a newly constructed smelter. To date, AP35 technology has been used in the upgrade of three existing smelters around the world.
Under a technology transfer agreement, Alcan will provide Sohar Aluminium with a licence and related technical services necessary to implement Alcan’s AP35 technology. This is the most advanced, efficient and environmentally friendly technology available. In June 2004, Alcan, OOC and Adwea announced their commitment to the Sohar Aluminium Company LLC, which will own and operate the smelter. The smelter will be based near the existing Sohar Industrial Area, which will provide a major economic boost to the Al Battinah Region of Oman. With the construction of a new Sohar Aluminium-owned 1,000 MW power plant, the smelter will have long-term access to a dedicated power supply on competitive terms and in a quantity sufficient to meet its energy requirements.
”Allcan is proud to develop and expand the scope of its aluminum production to this growing and dynamic region of the world. It has been very fortunate to have partners of such high calibre and the company is looking forward to working with the OOC and Adwea in realising this unique opportunity for all stakeholders,” it said.
Alcan is a multinational, market-driven company and a global leader in aluminum and packaging. With world-class operations in primary aluminium, fabricated aluminum as well as flexible and specialty packaging, aerospace applications, bauxite mining and alumina processing, Alcan today is well positioned to meet and exceed its customers’ needs for innovative solutions and service. Alcan employs approximately 70,000 people and has operating facilities in 55 countries and regions.
