The UAE unveiled plans for what will be the world’s largest single-site aluminium smelter with a capacity of 1.2 million tonnes per year (tpy).

The $6-billion smelter complex will be built at Taweelah in Abu Dhabi following a joint development agreement (JDA), signed between Mubadala Development, an investment arm of the Abu Dhabi government, and Dubai government-owned Dubai Aluminium Company (Dubal), which already has one of the world’s biggest smelters in Dubai.
The smelter will be developed in two phases, the first of which will be operational in 2010. The front engineering and design studies will be completed in 2007. The two companies will jointly develop, construct, own and operate the complex at the Khalifa Port and Industrial Zone in Taweelah. Mubadala Development and Dubal will form a joint company with each having a 50 per stake to oversee the operation and management of the new smelter. At full capacity, the smelter will have 2,600 MW of power. Negotiations have begun for the required gas volume for the project.
About 70 per cent of the venture will be financed through local and foreign borrowing, while the two governments will share the equity portion. 
Mubadala Development, a public joint stock company owned by the Abu Dhabi government, invests in commercially viable and strategic commercial and industrial partnerships.
The two companies also signed a joint protocol that establishes a basis for developing projects in the aluminium industry and for joint exploration of business opportunities in the upstream, production and marketing aspects.
Announcing the smelter project, a joint statement said: “This is an important strategic and historical alliance between Dubal and Mubadala Development that will serve the UAE national economy and capitalise on the excellent infrastructure already existing in the country.”
In his comments, Dubal’s CEO Abdullah Kalban said: “We do believe there is ample room for additional capacity on the back of strong international demand. Demand is growing at an annual rate of 4 per cent or 1.3 million tpy. This demonstrates the need to establish a smelter or two every year which is not happening in the world right now.” Kalban, who signed the JDA with Mubadala’s CEO Khaldoon Khalifa Al Mubarak, also said the combination of Mubadala’s expertise and Dubal’s technical know how and 26 years’ experience would greatly benefit the new venture.
“We are extremely pleased to have a quality partner of Dubal’s calibre in developing a leading-edge project,” said Mohammed Al Bowardi, vice chairman of Mubadala Development.
A joint steering committee will look into the possible business opportunities and study the creation of a UAE-based centre for excellence, research and development in the aluminium industry.
The committee will also study and develop the economic basis for other upstream and downstream-integrated investment opportunities in the industry such as the production of calcined coke, the development of aluminium rolling mills and possible applications in the automotive industry
The co-operation between Dubal and Mubadala will result in the creation of more than 4,000 jobs, of which UAE nationals will take up a large percentage.
Dubal is currently implementing an expansion project that will take its capacity to 861,000 tpy.
Mubadala’s international investments include the Italian luxury sport carmaker Ferrari (5 per cent), the Dutch fleet management giant LeasePlan Corporation (25 per cent) and a stake in nine oil exploration blocks in Libya.  Its local and regional investments include the cross-border natural gas project Dolphin Energy (51 per cent), Aldar Properties, National Central Cooling Company and Abu Dhabi Ship Building.