Dubai Aluminium’s (Dubal) success story will be extended to Algeria following an agreement in which it will participate in a venture for the development of a $5-billion aluminium production complex in the North African country.

Dubal and Abu Dhabi’s Mubadala Development Company will have a 75 per cent stake in the complex to be developed in the new industrial zone of BeniSaf. The remainder of the stake has been taken up by the Algerian consortium comprising Sonatrach and Sonelgaz.
The project is considered the biggest and most important direct foreign investment in Algeria. Built over 400 hectares, it will produce about 700 000 tonnes per year (tpy) of primary aluminium intended mainly for exports. The smelter will feature two potlines, using the modern and energy-efficient DX technology, as well as a 2,000 MW power plant and a deep-water wharf to handle the import of raw materials and export of the end product.
Khaldoon Khalifa Al Mubarak, Mubadala’s CEO and managing director, said: “This investment is necessary to provide for an increased demand for aluminium globally. The rising cost of energy in some regions continues to make older smelters uneconomical, whereas Algeria’s abundant supply of energy and regional position makes for an exciting opportunity.”
Mubadala is already an investor in Algeria, with existing investments including a number of power station and oil and gas projects.
Dubal CEO Abdulla Kalban stressed that Dubal would contribute its considerable expertise and industry knowledge to ensure the success of the project.
“For more than 25 years Dubal has been the success story of aluminium production in the region. We have developed our own DX technology which will be a feature of the new smelter and Dubal will provide essential technical support and resources to ensure its success. At every stage we will ensure the latest technology is applied and adhere to the highest environmental standards globally.”
The pre-feasibility has been completed and a detailed feasibility study will commence soon, which includes an environmental and social impact assessment study to ensure industry best practices during the design, build and operations phases.
Dubal also is equal owner with Mubadala in the $6 billion Emirates Aluminium (Emal) smelter coming up in Taweelah in the Abu Dhabi emirate of the UAE. The smelter has a designed capacity of 1.4 million tpy.
It is ranked as the 7th largest global producer in the industry with a current production capacity of 861,000 tonnes per year. Capacity is expected to reach 920,000 tonnes by the end of 2008 when expansions at Potlines 5 and 6B are completed. By that time, the casthouse will have a capacity of 1.13 million tpy while power generation will touch 2,045 MW
Some 35 per cent of its total production goes to the Far East, 11 per cent to South-East Asia, 25 per cent to the Middle East, 20 per cent to Europe and 9 per cent to North America.
Dubal was recently awarded the Dubai Human Development Award (Gold) for 2006 by the Dubai Executive Council.
The aluminium giant has achieved 25 per cent nationalisation of jobs with the UAE staff numbering 800. During 2006, it recruited 42 UAE trainees through the Graduate Trainee Programme, nearly 21 per cent of the total number of trainees who participated in the course.