A worker counts alumnium ingots.
Alcoa in $10.8bn aluminium complex plan
Reuters | Mon, 21 Dec 2009 10:25[miningmx.com] -- STATES-run Saudi Arabian Mining (Maaden) and US aluminium giant Alcoa agreed on Sunday to build a $10.8bn aluminium complex in the world's top oil exporter, targeting the Middle East from 2013. Under the deal, the companies form a joint venture to set up a 1.8 million tonne-per-year refinery, a 740,000 tonne-per-year smelter, a bauxite mine with an annual capacity of 4 million tonnes and a rolling mill with a capacity of up to 460,000 tonnes. The firms have yet to raise the financing for the complex mainly planned to be built in Ras Azzour on the kingdom's Gulf Coast close to Maaden's phosphate fertiliser plants. "We will go for financing during 2010," said Maaden CEO Abdullah al-Dabbagh. Last December, Rio Tinto Alcan abandoned its 49% stake in a 740,000 tonne-per-year smelter project because it was unable to obtain financing due to the global financial crisis. The project was then budgeted at $8bn. The smelter and mill are slated to start production in 2013 while the refinery and mine would come online in 2014, Dabbagh told reporters in the Saudi capital Riyadh. The project aims at "making Saudi Arabia and the Middle East a major hub for aluminium production and its downstream industries," Dabbagh added. No funding yet Alcoa CEO Klaus Kleinfeld told Reuters the costs of $10.8bn would be split, with the US firm and its partners paying 40% while Maaden is to handle 60%. He said a variety of funding options were being considered, when asked whether Alcoa could conduct a capital hike or go for debt. Plans call for the expansion of the mill to 460,000 tonnes of aluminium sheets, ends and tabs stocks for the manufacturing of aluminium cans, the firms said. Development will take place in two phases, starting with the smelter and rolling mill to be followed by the mine and refinery, Dabbagh said during a signing ceremony. For the alumina refinery, Maaden has received four bids for a $1bn engineering, procurement and construction management contract, industry sources said earlier this month.
USER COMMENTS () Click to View
COMMENT
SHARE
E-MAIL
PRINT
Most Read
Commented
Ed's Choice
- »Imperial Crown Trading vies for part of Sishen
by Allan Seccombe | 18 Mar 2010 16:44 - »Kumba's play for Sishen hits a hurdle
by Allan Seccombe | 17 Mar 2010 16:39 - »ANC tentacles in Sishen mineral rights
by Jan de Lange | 18 Mar 2010 08:59 - »Eskom facing court on BHP Billiton deal
by Jan de Lange | 17 Mar 2010 20:58 - »Pallinghurst maps aggressive growth plans
by Allan Seccombe | 17 Mar 2010 15:27
- » Pallinghurst maps aggressive growth plans
by Allan Seccombe | 17 Mar 2010 15:27 - » ANC tentacles in Sishen mineral rights
by Jan de Lange | 18 Mar 2010 08:59 - » First Uranium shake up marks fund raising
by Allan Seccombe | 12 Mar 2010 14:51 - » South Africa slips to 4 in gold rankings
by Allan Seccombe | 12 Mar 2010 13:03 - » JSE probes ArcelorMittal conduct
by Jan de Lange | 09 Mar 2010 11:20
- » ETF threat hangs over gold
by Allan Seccombe | 08 Mar 2010 18:01 - » Imperial Crown Trading vies for part of Sishen
by Allan Seccombe | 18 Mar 2010 16:44 - » South Africa slips to 4 in gold rankings
by Allan Seccombe | 12 Mar 2010 13:03 - » Kumba's play for Sishen hits a hurdle
by Allan Seccombe | 17 Mar 2010 16:39 - » Big enough is no longer good enough
by David McKay | 07 Mar 2010 10:04
More news from Base Metals
Multimedia
LATEST PODCAST | Pallinghurst steps up its game
| 18 Mar 2010 -
› More 
The MiningMX team delves deeper into the improved results of Gem Diamond and looks at Pallinghurst R ...
Listen ›
RADIO WRAP | More ›
›
First Uranium rescue plan good for Simmers too - Bernard Swanepoel |
›
Chamber's proposal gives an "almost bearable" alternative - Dick Kruger, CoM |
The MiningMX team delves deeper into the improved results of Gem Diamond and looks at Pallinghurst R ...
Listen ›
Podcasts
RSS Feeds
Jobs
Events
JSE Listed stocksReal time resources data.
FREE News Alert! Subscribe to our News Alert