DUBAI, 12 February 2007 — Dubai Aluminum Company (Dubal), one of the world’s largest aluminum producers owned by the Government of Dubai, and Mubadala Development Company, a wholly-owned investment and development vehicle of the Government of Abu Dhabi, have signed yesterday a joint venture agreement for the development of Emirates Aluminum (EMAL).
The joint venture agreement entails the construction and operation of a world class greenfield aluminum smelter complex in two phases. The first phase, with a cost of $5 billion, and the second phase, with an approximate cost of $3 billion, will produce a total output of 1.4 million tons capacity a year at the Khalifa Port and Industrial Zone in Abu Dhabi. This will make it the largest single site aluminum smelter in the world. The two entities will jointly develop, construct, own and operate the complex.
The first phase is expected to be operational in 2010. When completed and at full capacity, the new smelter will have a power plant capacity of 2,250 MW, with the required gas volume for the project already secured.
Plans are already under way to establish EMAL, the joint venture company with 50 percent stake each for Mubadala Development and Dubal. EMAL will oversee the operation and management of the new aluminum smelter.
The deal was signed by Khaldoon Khalifa Al-Mubarak, CEO and managing director, Mubadala Development and Abdullah Kalban, CEO, Dubal. Also present at the ceremony were Ahmed Humaid Al-Tayer, Dubal vice-chairman and members of the boards of both companies.
