Emal will be fully operational by 2013

14 March 2010
World's largest aluminium smelter will cost an estimated $10 billion.

Emirates Aluminium (Emal), the 50:50 joint venture project between Abu Dhabi's Mubadala and Dubai Aluminium Company (Dubal) will be fully operational in 2013. Once completed, it will become the world's largest alumina smelter and will cost a projected $10 billion (Dh36.72bn).
The smelter plant, which has already started production and exports, spreads across a six sq km plot in the Khalifa Port and Industrial Zone in Taweelah, along the coastline close to the Abu Dhabi-Dubai Highway.
Emal is the first and largest industrial unit in the industrial zone which is also set to become Abu Dhabi's first free industrial zone close to the country's largest seaport, Port Khalifa, which is under development.
The multi-billion dirham infrastructure facilities around the zone include link roads, external highways and a network of freight rail system to be built in future.
Emal was conceived and established in 2007 under an Emiri Decree issued by the President, His Highness Sheikh Khalifa bin Zayed Al Nahyan. Construction of the project started in early 2008. Emal also has to its credit, the distinction of being one of the world's largest industrial units to start production and exports, within a short span of time.
Emirates Business was the first and till date, the only media organisation to have been allowed to visit and tour the world's largest aluminium smelter site. The news team was escorted around the site and briefed about all the processes – from the arrival of raw materials to the finished product and exports.
"The first phase of the project will be fully operational by end 2010 or the beginning of 2011. Once fully operational, the first phase will have a capacity of 750,000 tonnes primary aluminium per year," said Yousef Bastaki, Project Director, Emal. When asked about the cost of the first phase, he said it was being built at a cost of approximately $5.7bn.
Commenting on current production capacity, he said Emal was at the start-up stage with production going online and marketing having begun. "We are very pleased with the highest environmental, health and safety performance. Once phase one is fully operational, Emal will have a production capacity of 750,000 tonnes of finished products."
Emal began its ramp-up to full production in December 2009 with the delivery of the first crucibles of molten metal from the smelter to the plant cast-house, and the first metal was cast to 650kg sow ingot.
The first local customer, Trans Gulf Aluminium (TGA), a local manufacturer of aluminium wire and rods and alloy ingots, was announced on February 3, followed by the first international client, Korea's Daewoo.
About Emal's market targets, Bastaki said: "We are a global player targeting customers around the world. We target all markets, local, regional and global. We are proud to have already started our first international shipment or export to South Korean conglomerate Daewoo International, our first international client last month. It is a big achievement in such a short period of time."
Emal, which is located close to Port Khalifa, has its own power plant with a capacity of 2000MW of electricity to run the plants in the first phase. Another power plant of similar power capacity is to be added in the second phase of the project.
In addition, it also has its own mini-port to receive raw material through conveyors directly from cargo vessels and to transport finished products through the on-site road-networks that will be further advanced with an internal freight rail network in future.
Being an environment-friendly project with health and safety facilities, the site has its own sewerage treatment plant in the first phase and will build another when the second phase is completed in 2013.
Elaborating on phase two of the project, Bastaki said: "It is still under feasibility studies. Phase two, when complete, will double production capacity. It will increase to 1.5 million tonnes per annum, making Emal the world's most productive and efficient single site aluminium smelter complex."
When asked about the cost of the project's second phase, he said it was too early to give a figure. "The feasibility study will tell us soon." On financing, Bastaki said this would not be a problem as both the stakeholders were strong enough to finance the project and had already worked out the estimates.
Bastaki said: "We have already started studying the financing of phase two. Hopefully, that will not be a problem as both our stakeholders – Mubadala and Dubal – are strong in finance. Once the feasibility study for phase two is finalised, we will be in a position to determine the extent of finance needed. When you are building a smelter that has a 50-year operating life, you don't do the economics based on today's situation."
About raw material supplies, Bastaki said most of these currently come from Australia, which is the largest exporter of alumina. He said Emal also gets its raw material supplies from China and other countries. "Though we have not fully completed the first phase and are embarking on the second phase, we have had no problem in supplies of raw material, which have been smooth so far."
Referring to the break-up between exports and local market sales of finished products, Bastaki said Emal was targeting a minimum of 20 per cent supplies for the local market and the rest for export to international markets. About 51 contractors and sub-contractors are involved in the construction of the complex with more than 20,000 workers at the site during peak-working hours.
"Now we have 15,777 workers working at the site. Emal currently employs around 1,000 people and when fully operational with the completion of phase two, this number is likely to cross 2,000," said Bastaki.
The complex is using UAE-owned technology, conceived at Dubal, to produce aluminium products from raw material. The complex also has the world's largest pot-room – 1,390 metres long. The complex produces low and high profile sows, standard and tee ingots, extrusion billets and sheet ingots.
The first phase has identical six gas turbines and two steam turbines, in addition to three gas turbines that are already operational – 11, 12 and 21. The complex currently has three alumina silos, each with a capacity of 17,000 tonnes; and two cork silos with capacity of 25,000 tonnes each. Additional, smaller silos to receive and store alumina will also be built. It has several large lines of pot-rooms with strong magnetic fields that can even stop a car from running.
When phase two is completed, all the processing plants, power plants and sewerage treatment plants will be doubled to make Emal one of the world's massive aluminium complexes – a mini city that will rise from the once barren salt flats along the Abu Dhabi-Dubai Highway..

EMIRATES ALUMINIUM: THE FACTS

Emirates Aluminium (Emal) was established through a 50:50 joint venture partnership between Dubai Aluminium Company (Dubal) and Mubadala Development Company (Mubadala)

The joint venture agreement was signed in November 2007

Operations at Phase One of the plant commenced on December 2 last year

The complex is to be built in two phases on a six sq km site in Khalifa Port and Industrial Zone, Al Taweelah – halfway between Abu Dhabi and Dubai

Emal is an important strategic initiative for Abu Dhabi, Dubai and the UAE, and a key component of Abu Dhabi's diversification and industrialisation policy

The cost of building Phase One is approximately $5.7 billion (Dh20.93bn). This results in 756 reduction cells arranged in two pot-lines, on-site 2,000 MW power plant, anode manufacturing plant and multi-product cast house

More than 19,000 local, international contractors and staff are employed during construction

Emal's operational workforce provides direct employment to approximately 2,000 people

The project generates jobs, encourages economic diversification and downstream development opportunities

Its target is to achieve zero Lost Time Injuries (LTI), a low incident frequency rate and minimum impact on the environment

Emal's environmental strategy is compliant with Abu Dhabi Environment Agency standards and local laws, and envisages adoption of global best practices wherever possible
STORY IN NUMBERS

- $10bn will be the cost of the project once it is fully operational by 2013

- 1.5 million tonnes will be the total production capacity per annum

- 750,000 tonnes will be the plant'scapacity once phase one is completed by the end of 2010

- $5.7 is the cost of phase one

- 6 sq km is the area of the site on which the entire project will be located

- 2000MW is the amount of electricity the Emal power plant will generate

- 20,000 workers will be employed on site during peak working hours


OPERATIONAL CAPACITY: PHASE I

- Configuration:2 pot-lines, 756 reduction cells

- Technology:Dubal DX, 350kA

- Power Station:2,000 MW


PROJECT TIMELINE: PHASE I

- February 2007:JV Signed

- January 2008:Construction commenced

- April 2008:First Concrete

- December 2009:First Metal

- January 2011:Full Operation