Comprehensive London news report on December 31: Alcoa recently announced that it has formed a joint venture with the Saudi Arabian mining company. The joint venture is responsible for the preparation of the aluminum electrolysis-processing integration project, which will use world-class advanced technology. According to the statement, the joint venture will become the world’s lowest-cost supplier of primary aluminum, alumina and aluminum products, which will enter the developing Middle East market.
At the initial stage of the project, the joint venture will be responsible for the development of a series of bauxite mining - alumina refining - aluminum smelting - aluminum processing, including:
—a bauxite project with an initial capacity of 4,000,000 tons/year;
—Alumina refining project with an initial capacity of 1,800,000 tons/year;
- an aluminum smelting project with an initial capacity of 740,000 tons; and
- The initial hot rolling mill with a rolling capacity of 250,000 tons to 460,000 tons;
The rolling mill was initially mainly engaged in aluminum plates, pull ring materials, etc. Its products are mainly supplied to aluminum can manufacturers; later it will be extended to aluminum products for the construction industry.
The refinery, smelter and rolling mill will be built on the Raz Az Zawr Industrial Park on the eastern coast of Saudi Arabia. According to reports, the project will use the state-of-the-art infrastructure prepared by the Saudi government, including low-cost and high-environmental power generation systems, as well as ports and railway facilities.
It is reported that the project will be developed in two phases, among which the rolling mill and aluminum smelter will be part of the first phase of the project. It is expected that the first phase of the project will be put into operation in 2013, while the mining area and refinery are expected to start production in 2014.
The project's infrastructure investment is expected to be 10.8 billion U.S. dollars. Among them, the Saudi Arabian Mining Company holds 60% of its shares while Alcoa holds the remaining 40%.