Saudi Arabia has highlighted the economic benefits of a $7 billion integrated aluminium “mine-to-metal” project which the kingdom’s mining company Ma’aden is jointly developing with aluminium producer Alcan.

A heads of agreement signed with Ma’aden sees Alcan developing the ambitious project that will include bauxite mining, alumina refining, power generation and aluminium smelting.
Ali Al-Naimi, the Saudi Minister of Petroleum and Mineral Resources and chairman of Ma’aden, said it would provide economic growth within Saudi Arabia, diversify the country’s economic and industrial base and create employment opportunities through opening up new sectors of economic activity
Alcan, which will hold a 49 per cent stake in the project, will provide technology and operations management support. Ma’aden will hold the remainder of the shareholding.
The Ma’aden project is one of the world’s largest vertical projects of its kind. Initially the project will feature a power plant delivering 1,400 MW; a 90 million tonne bauxite reserve located in Az Zabirah in northern Saudi Arabia and representing a potential 30 years of mining; an alumina refinery and an aluminium smelter with a capacity of 720,000 tonnes per year. The complex will leverage Saudi Arabia’s port facilities and infrastructure.
The alumina plant, aluminium smelter and power generation facilities will be located in the new Minerals Industrial City at Ras Az Zawr, on the east coast of Saudi Arabia. First metal will be expected during the first quarter of 2011.
Next steps will include completing the joint venture agreement and pursuing project financing arrangements for capital costs.
Dick Evans, president and CEO of Alcan Inc, described Saudi Arabia as a growing and dynamic kingdom, and said the company was pleased of its involvement in the project.
“This world-class project has an ideal combination of competitive energy resources, local bauxite, well-developed infrastructure and favourable logistics,” he said.
“Consistent with Alcan’s primary metal strategy, this project has the potential to achieve one of the lowest operating costs in the industry and become one of the world’s largest smelters,” Evans added.
The agreement was signed in Riyadh in the presence of Al-Naimi by Dr Abdullah Al-Dabbagh, president and CEO of Ma’aden, and Michel Jacques, president and CEO of Alcan Primary Metal Group.
Jacques commented: “Ma’aden’s mine-to-metal project complements our attractive pipeline of projects in new regions for Alcan, including those at Sohar, Oman and COEGA South Africa. The project will be built on Alcan’s unsurpassed technology, leveraging our unique combination of alumina and aluminium capabilities, resulting in more energy-efficient and cleaner processes.
Jacques added that the smelter — initially based on two AP 36 potlines — would be designed to accommodate a potential expansion of four additional lines that could increase annual production to over two million tonnes.
Dr Dabbagh commented: “This joint venture and our recently signed phosphate agreement with Sabic represent notable milestones in Ma’aden’s vision of expanding the scope of mining and associated industries in the kingdom and making mining the third pillar of Saudi industry, complementing Saudi Aramco and Sabic, the Saudi Basic Industries Corporation. We are pleased to have Alcan as our partner for this project. Alcan’s global experience combined with their team’s strong operating capabilities will prove vital in delivering long-term success.”