Abu Dhabi is emerging as the new powerhouse for aluminium smelting with one giant smelter project in the implementation stage and an initiative launched for a second smelter.

A $6 billion greenfield project announced earlier this year in February by the joint owners – Dubai Aluminium Company (Dubal) and Abu Dhabi’s Mubadala Development Company – is gaining momentum. The smelter when fully completed will yield 1.4 million tonnes of metal.
The other smelter could be set up by Rio Tinto’s aluminium product group (via its operating company Comalco Aluminium Limited) and General Holding Corporation (GHC), a fully owned entity of the Government of Abu Dhabi. They signed a Heads of Agreement document in late June to undertake detailed studies on the construction of an aluminium smelter in Abu Dhabi.  A figure of Dh8 billion ($2.17 billion) has been mentioned as the project cost. The two  parties are initially looking at  an annual capacity of 550,000 to 600,000 tonnes.
The agreement was signed by Sheikh Hamed Bin Zayed Al-Nahyan, Member of the Abu Dhabi Executive Council, chairman of the Department of Planning and Economy and chairman of GHC, and Sandeep Biswas, managing director of Comalco Smelting.
Biswas said the Abu Dhabi plan was part of his company’s ongoing global search for greenfield smelting opportunities.
“The Middle East is fast becoming a key region in the global aluminium smelting industry and Abu Dhabi is well placed due to its significant energy resources.
“We are very encouraged by the long-term potential of this partnership and the opportunities it presents,” said Biswas.
The official said a preliminary study had indicated a positive outlook and that it had now been decided to move to the next, more detailed, feasibility stage.
“The Heads of Agreement will allow us to jointly investigate the feasibility of a world-class aluminium smelter in the Emirate of Abu Dhabi,” he said.
The official signing took place whilst Sheikh Hamed and his party toured Comalco’s operations in Queensland, Australia. GHC owns and operates industries in steel, cement, cables, food, oil and gas and fabrication processes and structures.
Rio Tinto Aluminium is an integrated primary aluminium producer with operations located in Australia, New Zealand and Europe.  It is the aluminium product group for Rio Tinto, a world leader in finding, mining and processing the earth’s minerals.
The Mubadala-Dubal smelter took a step forward with a contract signed with SNC Lavalin for a feasibility study and environment impact accessment (EIA).
The Mubadala-Dubal alliance enjoys the direct support of General Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, Deputy Supreme Commander of the UAE Armed Forces, Chairman of Abu Dhabi Executive Council and Chairman of Mubadala Development, and Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai, the UAE Minister for Finance and Industry and Chairman of Dubal.
“The award of the EIA study together with the feasibility study demonstrates Mubadala and Dubal’s commitment to global best practices in implementing such a huge project, and the great importance attached to environmental protection and sustainable development,” said Khaldoon Khalifa Al Mubarak, CEO of Mubadala Development.
The first phase of the project with around 700,000 tonnes annual capacity will be operational in 2010. When all phases are completed, the smelter will have an annual capacity of 1.4 million tonnes, which will make it the largest single-site aluminium smelter in the world.
“A project implementation team with senior officials from both companies is currently studying the type of potline, size, layout for the complex, the equipment, power supply arrangements and access to the new port among other aspects,” said Abdulla Jasim bin Kalban, CEO of Dubal.
Under the Joint Protocol signed between Dubal and Mubadala, Dubal will provide technology and management resources to the project.
“The Mubadala-Dubal collaboration has all the ingredients to make the project a stunning success, as it builds on Dubal’s expertise as a global leader in aluminium production and marketing and Mubadala’s track record in successful structuring and financing of large-scale projects,” said Al Mubarak.
“This mammoth project is expected to be the first of a number of joint projects between Mubadala and Dubal, targeted to make the UAE a top-tier player and a global force in the aluminium industry,” said bin Kalban.
This strategic alliance between Dubal and Mubadala will result in the creation of more than 4,000 job opportunities for UAE nationals. The project will also add value to the local energy sector, and pave the way for further processing and new downstream industries. 
A 6 sq km plot of land adjacent to the Al Taweelah power stations complex in the north east of the heavy industry zone of Khalifa Port and Industrial Zone has been allocated by the Abu Dhabi Ports Company for the planned $6 billion smelter project in Abu Dhabi.
 “The Khalifa Port and Industrial Zone offers the ability to share the proposed infrastructure being developed at the site with future planned industrial developments. Additionally, the selected site will allow future co-location of related downstream processing industries which will use aluminium as a feed-stock to their processes,” said Al Mubarak.
“The site was chosen after careful consideration of various economic factors including proximity to the sea and suitable environmental conditions. The site, being close to the Al Taweelah power stations complex, will also facilitate the opportunity for power supply from Adwea during the start up of the project,” said bin Kalban.
The two Abu Dhabi smelters plus the Dubal plant in Dubai — which will have an annual capacity of 861,000 tonnes by the end of this year and has plans for expansions — will make the UAE one of the top aluminium producers in the world.
Demand for aluminium is said to be growing at the rate of three to four per cent annually.
“The GCC’s market share is currently about four per cent globally but it could exceed 10 per cent after 2010 when the UAE’s new smelters become operational and other smelters in the GCC region are ready,” said Dr Eckart Woertz, economist at Gulf Research Centre (GRC).