Work on Qatar Aluminium’s (Qatalum) smelter, which will produce one of the world’s largest volumes in one stage, has commenced after a steep upward revision of investment costs.

The plant, which will have a first-phase capacity of 585,000 tonnes, will cost $5.6 billion, some $800 million over a recently revised figure, which was itself revised from the original estimate of $3 billion.  Qatalum is owned 50/50 by Qatar Petroleum and Norsk Hydro ASA. Aluminum production is planned for start-up in the fourth quarter of 2009.
“Total investment costs previously estimated at $4.8 billion for the entire joint venture are expected to increase by about $800 million,” Hydro said in its third quarter results report.
“A significant number of major contracts for the project have now been placed and the partners, together with these contractors, are in process of finalising subcontracts with suppliers,” Hydro said.
It added: “It has become evident that the high level of activity in the construction market will result in cost increases for some of these subcontractors compared to previous estimates.”
SNC-Lavalin will carry out the engineering, procurement and construction (EPC) of the services’ area and potroom building.
Qatalum, has awarded the EPC contract for its 1,250 MW power plant to a consortium consisting of General Electric(GE) and Doosan Heavy Industries.
France’s Solios Environnement has the engineering, procurement and construction contract for gas treatment centres.
The contract covers the supply of these centres on a turnkey basis, including engineering design, civil works, construction and commissioning.
Solios Carbone, part of the Solios Group, was awarded the contract to build a green anode plant.
Hycast AS has signed a letter of intent with Fata EPC of Italy for the supply of casting equipment. The agreement includes the design and supply of equipment for casting extrusion ingots and foundry alloys.
Fata EPC is a division of Fata SpA, the Italian design and construction company responsible for building the Qatalum casthouse.
The construction of Qatalum’s billet casthouse commences in April 2008. The first deliveries of equipment from Hycast will be in place in Qatar in December 2008 and the equipment will be installed over a period of about one year.
In addition to its responsibility for the design and the supply of casting equipment, Hycast will also have personnel stationed in Qatar to supervise the installation and commissioning of its own equipment.