Arab aluminum project progressed as scheduled, weak due to economic crisis

Although the current global economic crisis continues to impact commodity demand, the large expansion project of the Arab aluminum industry is still expected to be completed in 2010.

Benefiting from lower energy prices, the GCC countries will become the main aluminum producers in the region. It is estimated that before 2010, aluminum production in the Arab region will account for about 10% of the world's total, and by 2020 it will reach 20%. In 2050, the region is expected to become the world's largest aluminum producer.

It is reported that before 2010, the investment in the aluminum industry in the region will reach 8 billion U.S. dollars, which is more than twice the amount in 2002.

Mohammed Al Naki, chairman of the Arab Aluminium executive committee, pointed out that "not only low energy prices (promoting the development of the aluminum industry) ... Arab countries have a clear strategic trend - to become an international financial center, Diversification of economic development, especially manufacturing and industry, will become pillar forces."

Currently, there are only two aluminum smelters in the Gulf region: Dubai Aluminum's 900,000-ton annual smelter and Bahrain's 860,000-ton smelter. However, 11 aluminum smelter projects are currently under construction or are in the planning stage and are expected to be put into operation in 2012.

Abdulla JM Kalban, CEO of Dubai Aluminum, said that as of now none of the company’s sole proprietorships or joint ventures has been shelved or postponed. In addition, Maaden, the state-owned mining company of Saudi Arabia, recently announced that it will review its US$10.5 billion aluminum project in light of the escalating global economic crisis. When the project is completed, it will become the world’s largest mineral-metal combination project and no further statement.

The minerals of the GCC production plants are mainly from Australia and Africa, so industry people hope to be able to exploit more resources in the adjacent areas; Al Naki pointed out that “We have been trying to use the bauxite deposits of Sudan and Morocco, and if possible, we will In the development of industry in these countries, Saudi Arabia will also mine the bauxite deposits near its northeastern region."

Major aluminum companies in the region

Dubai Aluminum Company

The company is the seventh largest primary aluminum producer in the world. It is currently the largest single-site aluminum smelting complex in Western countries and is the largest contributor to Dubai's non-oil economy. Dubai Aluminum plans to increase production capacity to 1 million tons/year by the end of 2008.

UAE Aluminum Corporation

The company was established in February 2007 and is a joint venture between Dubai Aluminum and Mubadala Development. It will be responsible for the construction of the largest single site aluminum smelting complex in the world. The project will be constructed in two phases. At the completion of the first phase of 2010, the company's aluminum production will reach 700,000 tons/year, and the second phase will reach 1.4 million tons/year. China Aluminum Network Copyright

Bahrain Aluminum Corporation

Bahrain Aluminum is the first aluminum smelter in the Middle East, with an initial capacity of less than 120,000 metric tons per year. After the expansion in the past few years, the current production capacity has reached 870,000 metric tons per year. Its exports to local downstream companies account for more than 45% of its total production, accounting for about 12% of Bahrain's GDP.

Qatalum

The plant is a joint venture between Qatar Petroleum and Hydro. It will be put into production in 2009, and it will reach universal production in 2010. The primary aluminum production capacity in Phase I will reach 585,000 tons.

Suhar Aluminum Company

The company was established in September 2004 and is responsible for Oman's $2.4 billion aluminum smelter project, which is expected to reach full production in December this year.

Ma'Aden

Ma'Aden and Rio Tinto Alcan's US$10.5 billion "mineral-metal" aluminum combination project has an alumina production capacity of 1.4 million tons per year and aluminum production of 650,000 tons per year. It plans to start production in 2012 due to the economic crisis. At present, the project is facing reconsideration.

In addition, the capacity of Egypt's Egypttalum smelter at the end of 2010 will also increase from the current 181,000 tons to 320,000 tons.