Dubai Aluminium Company Limited (“DUBAL”) and Mubadala Development Company PJSC (“Mubadala”) have today signed a Memorandum of Understanding with Saudi Arabian General Investment Authority (“SAGIA”) and Emaar, The Economic City (“Emaar E.C.”) regarding the green-field development of an aluminium smelter complex in King Abdullah Economic City, Saudi Arabia. Should it proceed, the US$5 billion-plus project will entail feasibility and environmental impact studies prior to the development and construction of the proposed aluminium smelter complex and associated infrastructure. DUBAL and Mubadala’s responsibilities will be fulfilled by EMAL International, a joint vehicle owned equally by the two companies.
The initial production design capacity of the proposed smelter will be approximately 700,000 metric tonnes per annum (“mtpa”), complemented by a purpose-built power utility capable of providing a guaranteed, uninterrupted long-term supply of the power required to properly and fully operate the proposed smelter. The development will feature DUBAL’s proprietary smelter technology and will leverage the company’s project management skills, operational efficiency and global market position. The project will benefit from Mubadala’s expertise in structuring and financing multibillion dollar projects, as well as DUBAL’s superior industry knowledge and best-in-class practices in the areas of health, safety and environment.
It is estimated that the project could create about 2,500 direct employment opportunities within the completed smelter complex; as well as spawning a substantial number of indirect employment opportunities (a multiplier effect of approximately two times is anticipated). Moreover, the smelter project would strongly boost Emaar E.C’s drive to develop industrial zones within the King Abdullah Economic City, ultimately attracting downstream investments in the aluminium industry, and resulting in further job creation and GDP development for the Kingdom of Saudi Arabia.
SAGIA has expressed its commitment to supporting the hiring and training of a Saudi workforce for the project. The knowledge, experience and skills of expatriate workers would be leveraged in commissioning and initial operation of the smelter complex, with a view to the transfer of the requisite skills to the Saudi workforce.
Emaar E.C. has indicated its willingness to identify a 4 square-kilometre site within the industrial zone of King Abdullah Economic City that is not only suitable for the development of the smelter, but which also offers good access to suitable deep water port, utilities and all road transport links. Should the project go-ahead, Emaar E.C. would also help provide temporary and permanent accommodation for the construction and project personnel; and would include adequate healthcare facilities, schools and other social infrastructure requirements in the overall development of King Abdullah Economic City.
“DUBAL’s involvement in this project is extremely gratifying, as it pays tribute to the wealth of experience and advanced technologies developed by our company over the past 28 years of so,” says DUBAL CEO, Abdulla Kalban.
Mubadala’s CEO and Managing Director, H E Khaldoon Khalifa Al Mubarak, adds, “Both Mubadala and DUBAL enjoy the capabilities and resources to design, implement and run a project of this magnitude. The combined strengths of our two companies will ensure the delivery of a world-class project.”
About Dubai Aluminium Company – DUBAL
DUBAL is ranked as the seventh largest producer of primary aluminium in the world, and currently ranks as the largest single-site aluminium smelter complex in the Western world and is also the single largest non-oil contributor to the economy of Dubai. Built on a 480-hectare site in Jebel Ali, Dubai, UAE, DUBAL’s major facilities comprise an 890,000 mtpa primary aluminium smelter, a 2,100 megawatt power station, a large carbon plant, three casthouses, a 30-million-gallon-per-day water desalination plant, laboratories, port and storage facilities.
The company has the capacity to produce more than 900,000 metric tonnes of high quality finished aluminium products a year, in three main forms: foundry alloy for automotive applications, extrusion billet for construction purposes and high purity aluminium for the electronics industry. A dynamic growth strategy will increase annual production volumes of metal to almost one million metric tonnes by 2008.
DUBAL serves 280 customers in 44 countries predominantly in the Far East, Europe, the ASEAN region, the Middle East and Mediterranean region, and North America. The company holds ISO 9001, ISO/TS 16949, ISO/IEC 27001, ISO 14001 and OHSAS 18001 certification; and has twice won the Dubai Quality Award in the Production and Manufacturing sector (1996 and 2000).
About Mubadala Development Company
Mubadala is an investment and development vehicle established and wholly owned by the Government of the Emirate of Abu Dhabi. Its mission is to invest in commercially-viable, strategic, industrial and commercial partnerships.
The company manages a diversified portfolio of local, regional, and international investments. International investments include the Dutch fleet management giant LeasePlan Corporation (25 per cent stake), and a stake in nine oil exploration blocks in Libya. Stakes are also held in the Swiss aircraft and engine services provider SR Technics (40 per cent), the Italian luxury car manufacturer Ferrari (5 per cent), and Piaggio Aero Industries (35 per cent).
In the United Arab Emirates and wider Gulf region, Mubadala has invested in, and developed, a number of leading projects including the first GCC cross-border natural gas project, Dolphin Energy (51 per cent majority stake), Aldar Properties, Abu Dhabi Future Energy Company (Masdar), Tabreed, Abu Dhabi Ship Building, Imperial College London Diabetes Centre in Abu Dhabi, Injazat Data Systems and the Mukhaizna Oil Field developments in Oman. Mubadala is also pleased to be leading the development of the UAE University’s new campus in Al Ain City through a public-private partnership initiative.
About EMAL International
Established by DUBAL and Mubadala Development Company (“Mubadala”), EMAL International is set to become a significant global aluminium player through developing and acquiring both upstream and midstream activities while promoting downstream opportunities in the aluminium industry. The company provides a vehicle for the two companies to explore in detail various investment opportunities along the entire aluminium supply chain - such as alumina production; investment in existing production capacity; and the joint development of green-field smelters in the Middle East and North Africa (“MENA”) region as well as further a field around the world.
About Saudi Arabian General Investment Authority – SAGIA
SAGIA is the Saudi Government agency responsible for promoting investments into the Kingdom of Saudi Arabia, managing its investment environment and managing the “economic cities” concept. SAGIA is headquartered in Riyadh.
About Emaar, The Economic City:
Emaar the Economic City (Emaar.E.C), established in September 2006, is a Saudi joint stock company managed by Emaar Properties PJSC, one of the world’s largest property developers, and a number of high profile investors from Saudi Arabia. Emaar.E.C has a share capital of SR8.5 billion consisting of 850 million shares of nominal value SR10 each. Thirty per cent of the equity, worth SR2.55 billion, was offered for public subscription.
Emaar.E.C leads the master-planning and development of the 168 million sq m King Abdullah Economic City (KAEC), a project being built on a pristine location off the Red Sea in the north of Jeddah. SAGIA (Saudi Arabian General Investment Authority), the body responsible for inward investments into the Kingdom, is the prime facilitator for KAEC.
KAEC, a New Age City being built today for tomorrow’s generation of Saudi citizens, has seven components – sea port, industrial district, educational zone, central business district with commercial, mixed-use, retail outlets and financial island, resorts and residential area.
The mega-project works closely with the Kingdom’s on-going drive to expand the economy, create employment opportunities for its youthful population and function as a catalyst to attract foreign investment, global trade, commerce and industry. Based on initial forecasts, the project and its several components will create up to one million employment opportunities in the various industries and service-oriented companies that will open in KAEC. It will also be home to 2 million residents.
