AluNews - November 2010

nLondon Stock Exchange welcomes Aluminium Bahrain

CPI Financial - 30-Nov-2010
The London Stock Exchange today welcomed Aluminium Bahrain (Alba), the world's fourth-largest producer of aluminium by capacity, to its main market.
The total value of the company's Global Depositary Receipt (GDR) offering in London was $174.7 million, and was made alongside an Ordinary Share offering on the Bahrain Stock Exchange, raising a total of approximately $339 million. Trading in the GDRs and Ordinary Shares commenced today on the London and Bahrain Stock Exchanges, respectively, under the symbol ‘ALBH’.
Tracey Pierce, Director of Equity Primary Markets at London Stock Exchange Group, said, "We are delighted that Aluminium Bahrain has chosen London for its listing outside of its home market. Situated at the heart of the world's most international financial centre, the London Stock Exchange continues to be the public market of choice for Middle Eastern companies looking to access the capital they need to become global leaders. Today's successful issue by Aluminium Bahrain highlights the London market's appetite to fund the growth of ambitious companies from the region and underscores London's expertise in financing natural resources companies."
Mahmood Al Kooheji, Chairman of Alba, said, "London formed an integral part of our transition to becoming a public company. We believe that it demonstrates our commitment to transparency and strong corporate governance. The aluminium sector has a positive global outlook and as such we are delighted that joining the London Stock Exchange has helped us attract a strong international institutional investor base."
Aluminium Bahrain produces a variety of aluminium products at its site in the Kingdom of Bahrain, including extrusion billets, foundry alloys, rolling slabs, standard ingots and liquid metal. For the past three years, the company's average annual production has exceeded 860,000 tonnes, reaching a peak of nearly 872,000 tonnes in 2008.
Aluminium Bahrain has listed on the London Stock Exchange's Main Market and the Bahrain Stock Exchange. 10 per cent of Aluminium Bahrain's total outstanding equity share capital was sold by Mumtalakat, the investment company of the Kingdom of Bahrain.
All of the company's 1,420 million outstanding ordinary shares are now listed on the Bahrain Stock Exchange, including the 72,981,125 ordinary shares in the form of GDRs sold in the GDR offering and the 69,018,875 ordinary shares sold in the Ordinary Share offering. A total of 14,596,225 million GDRs were listed on the London Stock Exchange's Main Market (with 1 GDR representing 5 Ordinary Shares).
Outside Israel, there are now 43 Middle Eastern companies on the London Stock Exchange's markets, while there are none listed on NYSE-Euronext or Nasdaq.

(AMM) Ormet not commenting on anode plant purchase
Metalbulletin.com (subscription) - 30-Nov-2010
Primary
aluminum producer Ormet Corp. declined to comment Tuesday on whether it had completed due diligence on its possible purchase of a carbon anode ...

Alcoa (NYSE:AA), Ma'aden Secure $1.9 Billion for JV
Everything Gold (blog) - 30-Nov-2010
Loan deals worth $1.9 billion have been signed by Alcoa (NYSE:AA) and Ma'aden in order to further their work on the giant aluminum project in Saudi Arabia.
This is in addition to the already-secured $2.6 billion in financing from the Saudi Public Investment Fund and the Saudi Industrial Development Fund for the first phase of development.
The two companies have entered into a contract to develop a $10.8 billion industrial complex to sell to the region and international markets.
A key part of the project is a huge bauxite mine in Qassim, which has the capacity to produce up to 4 million metric tons.
Financing for the second phase of the project is expected to start up soon.

Alba's calcined pet coke generates wider customer interest
AME Info - 30-Nov-2010
Aluminium Bahrain (Alba) is making considerable headway in generating wider customer interest across regional and global markets in the company's calcined petroleum coke product as demonstrated by a recent visit to the Alba plant by a delegation from the Indonesian Embassy in Bahrain and Kuwait.
Alba's Chief Supply Chain Officer, Isa Al Ansari met the delegation comprising His Excellency the Minister Counsellor and Head of the Economic Section at the Indonesian Embassy in Kuwait, Darmawan Suparno, the Charge d'Affaires at the Indonesian Embassy in Bahrain, Agus Salim, and the Counsular Officer at the Indonesian Embassy in Bahrain, Yahya Samira .

Potential of India's Investment is US$5 Billion
Tempo Interaktif - Nov 29, 2010
TEMPO Interactive, Jakarta:Gita Wirjawan, the Investment Coordinating Board (BKPM) chief, estimated that India’s potential investment can reach US$5 billion within the next three to five years. “I met with over 12 companies, most of whom have expressed their interest in investing in Indonesia,” Gita said yesterday.
The sectors Indian investors were mostly interested in were coal mining, power generation, ports, trains, and bauxite smelters. One particular sector is mining because one of the Indian companies was interested in building a smelter to process bauxite and produce aluminum.
A delegate of BKPM officials and a number of businessmen recently went to India to study investment possibilities for Indonesia.
In mid August last year, the free trade agreement between ASEAN and India was signed. Expectations were high that investment and trade between the two countries would be accelerated following the agreement.
KARTIKA CANDRA

Rio Tinto: Paraguay Smelter Costs Rise To More Than $3 Billion
Fox Business - November 29, 2010BUENOS AIRES -(Dow Jones)- Rio Tinto Alcan, a subsidiary of U.K.-based Rio Tinto Ltd. (RIO, RIO.LN), has seen its estimated cost for a potential aluminum smelter project in Paraguay rise to more than $3 billion as it pushes forward with increasingly ambitious plans, a company spokesman said Monday.
In December, the company signed a letter of intent to begin negotiations over power supply after two years of analyzing the project. While the company is far from reaching a final investment decision, it is "assuming a 2014 start to construction and a 2016 initial production in our studies," spokesman Bryan Tucker said in an email.
Cost estimates have risen from initial estimates of $2.5 billion as the smelter's potential tonnage has risen to 670 kilotons per year, while estimated power use has risen from 800 megawatts to 1,100 megawatts, he said. In addition, Rio Tinto is planning on using more advanced technology for the smelter, known as AR5X.
The company is planning on using the Paraguayan plant to process the alumina coming from neighboring Brazil into aluminum. In Brazil, Rio Tinto refines bauxite from the Porto Trombetas mine at the Alumar refinery, both of which it has stakes in.
Copyright © 2010 Dow Jones Newswires

Bauxite dispatch to Hindalco units paralysed
Business Standard - November 30, 2010
Dispatch and transportation of bauxite from mines in Gumla and Lohardaga districts of Jharkhand to Hindalco’s integrated plant in Renukoot in Uttar Pradesh and another plant in Muri in Jharkhand has come to a standstill since November 8.
When contacted by Business Standard today, K K Dave vice-president, Lohardaga mines division of Hindalco said that dispatch of bauxite could not be undertaken because of Naxal menace.
He said, "We are somehow managing our few trucks to transport bauxite to our Muri plant with police escort. But it will not help the requirement of the Muri unit," he added.
Dave said that a few days ago a statement from the People’s Liberation Front of India (PLFI) appeared in the local media asking Hindalco to stop its activities in Jharkhand.
The Hindalco official further said that the main reason behind the disruption in dispatch and transportation of bauxite was fear of rebels in the area.
He said that on an average 2,500-3,000 tonnes of bauxite were transported daily to Hindalco’s units.
He expressed concern that disruption in movement and transportation of bauxite from the mines in Jharkhand would affect production both Muri and Renukoot plants.
He refuted the allegation that there was some dispute between transporters and truck owners of the region and it was a coincidence that the rebel attack and payment-related dispute occurred simultaneously.
Dave said that Hindilco’s Jharkhand units had been facing the Naxal menace most of the year.
It may be mentioned that in May 12 last year, six trucks were set on fire by the rebels in Ghagra in Gumla. On August 18 last year, mining equipment and vehicles were destroyed. On August 4 this year, Naxalites burnt three trucks carrying bauxite in Jharkhand’s Lohardaga district during the five-day state shutdown.
On October 31 this year, suspected PLFI rebels torched equipment in Serendag mines in Gumla.
Hindalco has leases in four functioning major bauxite plateaus of Lohardaga and Gumla. Besides, it has two leases in Latehar.
Besides, many other private mines operate in Gumla district.
Bauxite from Lohardaga and Gumla is ferried to Hindalco plant in Renukoot that has a metal production capacity of 35 lakh tonnes while Muri unit produces 5 lakh tonnes alumina per annum.

Russia's RUSAL denies interest in India's smelter
Reuters Africa - MOSCOW Nov 29
(Reuters) - Russia's United Company RUSAL (0486.HK: Quote) on Monday denied that it had agreed with India's Gujarat Foils (GUJF.BO: Quote) to issue an expression of interest (EOI) for an aluminium smelter and refiner in Gujarat.
"We have not held any discussions with this company," a RUSAL spokeswoman said.
Gujarat Foils had said its Gujarat Mineral Development Corp had issued an EOI to build a alumina refinery together with RUSAL with an annual capacity of 1.0 million tonnes and a aluminium smelter with a capacity of 0.5 million tonnes. [ID:nSGE6AS08N]
The total investment for the project would be about 140 billion rupees, the company said in a statement.
(Reporting by Alfred Kueppers)

jChina's Aluminum Market ? A Different Point of View
MetalMiner - 29-Nov-2010
Though recently MetalMiner has covered many aspects of the aluminum market, we often encourage alternative points of view in particular, alternative global points of view. A frequent commentator on this site, Paul Adkins, has one such alternative point of view regarding some of the happenings within the Chinese aluminum market. Paul should know because he lives in Beijing and works closely with several aluminum producers within China. He also writes the blog Black China Blog and runs the company AZ China. If you seek alternative viewpoints within the aluminum industry in China, you need go no further. Paul Adkins is your man. Paul has taken an alternative point of view on the subject of China aluminum industry output reductions in order to drive down energy intensity. In a recent post on that very subject, Paul explains the Chinese aluminum industry likes to perpetuate that story, “According to our sources, the industry is delighted that the world’s press publish stories about capacity limitations and import growth. Their view is that these things only help promote the metal price, which is why the industry is putting these stories out in the first place.”
He’s not kidding. According to his latest monthly report, he sees fourth quarter China aluminum prices reaching $2500/ton (for what it’s worth, the LME closed on the 26th at $2242/ton). But overall, Paul sees the aluminum market within China very much in balance (though he concedes the Strategic Reserves Board has recently sold some of its holdings and inventory levels have dropped). Furthermore, he makes the distinction between China being a net importer of “primary aluminum” vs “scrap imports.” China is already a net importer, according to Paul, of scrap (and they will pay more for it given the country’s relative high energy costs).
Paul also reports that coke prices have started to increase as a result of rising oil prices and this will impact downstream markets. The combination of coke price increases and some smelter cutbacks could lead producers to turn toward export markets “that have a better capacity to pay.”
If your company buys aluminum from China, you may wish to attend a special session of the Metals Society annual conference in San Diego from Feb 27 – March 4 entitled, “China Aluminum Briefing” led by Paul Adkins. That briefing will be held on Saturday February 26 at the Marriott Hotel. More information can be found at the AZ China website. In addition, the China Aluminum Briefing will feature a discussion of China’s aluminum imports with our friends from Harbor Aluminum, Mr. Jorge Vasquez.
Another exciting speaker who may join the conference includes Mr. John Garnaut (MetalMiner readers may know of John Garnaut who broke the now-famous Stern Hu Rio Tinto story last year when Mr. Hu famously said to Mr. Garnaut on the phone, “ I better hang up, I think my phone is being tapped.”) Not one to shun controversy or public debate, Paul included a link to this article by John Garnaut that will sit well with anyone who feels China’s export trade policies are in need of an overhaul.
dditional speakers will cover the bauxite, alumina and coke markets and Paul will also address the aluminum fluoride market.

CHALCO starts CNY 4 billion projects in Guangxi
SteelGuru - Saturday, 27 Nov 2010
China Knowledge reported that Aluminum Corporation of China Limited has started construction on three projects with investment totaling CNY 4.17 billion in the Guangxi Zhuang Autonomous Region.
According to the State owned Assets Supervision and Administration Commission, the 3 projects which will go into operation at the end of next year are expected to contribute more than CNY 5 billion in sales revenue and CNY 1.2 billion in industrial value added output.
Upon the overall operation of these projects, Chalco's Guangxi subsidiary will produce a total of 2.5 million tonnes of alumina, 550,000 tonnes of electrolytic aluminum and 220,000 tonnes of iron ore concentrate bringing its industrial value added output to more than CNY 10 billion.
Chalco is also reportedly to buy into Guangxi Nonferrous Metals Group to help the latter firm to list rare-earth business in the domestic market and China Nonferrous Metals Mining Group also has intention to invest in Guangxi Nonferrous Metals. (Sourced from China Knowledge)

Henan Zhongfu orders hot rolling mill at Gogyi
SteelGuru - 27 Nov 2010
Henan Zhongfu Industrial Company Limited of China has placed an order with SMS Siemag for the erection of a 1+4 CVC plus hot rolling mill at the Gogyi location in West Zhengzhou of Henan Province. The hot rolling mill is to be integrated into a new works complex in which, primarily, aluminum hot strip will be rolled for can production. The hot rolling mill is designed for an annual capacity of over 760,000 tonnes.
SMS Siemag is supplying the reversing roughing stand and the four stand finishing mill for the production of 2,400 mm wide aluminum hot strip with a minimum final gage of 1.8 mm. The 4 stands of the finishing mill are equipped with hydraulic adjustment system CVC plus with integrated work-roll bending and multi zone cooling.
In the entry section of the finishing mill an ingot cooler for special products regulates the strip temperature in order to ensure high production. Our supply scope is rounded off by light and heavy crop shears with scrap handling system, side trimmer fume exhaust, uncoiler and coil conveyor as well as utility systems.
SMS Siemag AG is a company of the SMS group, which is, under the roof of theholding SMS GmbH, a group of companies internationally active in plant construction and mechanical engineering for the steel and nonferrous metals industry.
It consists of the 2 Business Areas SMS Siemag and SMS Meer. In 2009, some 9,000 employees worldwide generated a turnover of EUR 3.9 billion. The mill will go into operation at the beginning of 2013 and be used for manufacturing aluminum hot strip for beverage cans in a wide range of grades and alloys.

Siemens to modernize aluminum cold rolling mill in Bahrain
SteelGuru - Friday, 26 Nov 2010
Siemens VAI Metals Technologies has received an order from Gulf Aluminium Rolling Mill Company BSC in Manama of Bahrain to equip its aluminum cold rolling mill no 2 with new automation and drive systems. The modernization is intended to improve plant availability as well as to ensure consistently high product quality. The cold rolling mill will be upgraded during a scheduled plant shutdown at the end of February 2011.
GARMCO was founded in 1986 and is a leading producer of rolled aluminum products in the Golf Region. The company's 2 cold rolling mills have a combined capacity of 165,000 tons per annum. Its main products are series 1000, 3000 and 5000 alloys with thicknesses ranging from 0.15 to 5 millimeters. The four high, single pass mill in the cold rolling mill no 2 has a roll force of 21,000 kilo Newton and reaches a rolling speed of 1,200 meters per minute. The maximum coil weight is 10 tonnes.
In order to improve plant availability and ensure final products of consistently high quality, Siemens VAI will renew the entire automation equipment in the cold rolling mill and the associated secondary plants. The heart of the automation solution is the Siroll Alu TCS process control system specifically developed for aluminum rolling mills.
It contains all the essential technology packages required for high product quality including an automatic roll gap and thickness control, a flatness control and presetting the rolling mill on the basis of the production plan. The project also covers the replacement of the power modules in the stand drive, the two coiler drives and in most of the auxiliary drives. The consoles in the control centers will also be modernized.

Bauxite shareholders approve WA alumina refinery
Creamer Media's Mining Weekly - 25th November 2010
PERTH (miningweekly.com) – The shareholders of ASX-listed Bauxite Resources on Thursday approved the development of an alumina refinery in Western Australia, with joint-venture partner Yankuang.
Bauxite Resources signed an agreement with Yankuang to design and build a 1,1-million-ton a year refinery, which would require 3,5-million tons of bauxite.
The long-term goal was to design and build a state-of-the-art alumina refiner in the South West, using the local high-quality bauxite to produce the alumina, chairperson and acting CEO Barry Carbon reiterated at the annual general meeting on Thursday.
“The recently announced and well-publicised heads of agreement with Yankuang Corporation has significantly derisked this long-term objective and set Bauxite Resource up with a credible and achievable strategic plan,” he said.
The construction of the refinery would start within the next five years.
Yankuang would pay 91% of the refinery construction cost and would receive 70% of the alumina product, while Bauxite Resources would fund the balance of the construction cost and receive the remaining alumina product.
Yankuang also agreed to an offtake agreement for half of Bauxite Resources’ 30% alumina for the first ten years, while the Australian company would have the right to market the remaining 15%.
A bankable feasibility study (BFS) would be carried out alongside the strategy to design and build the alumina refinery. The construction on the refinery would start subject to the outcome of the BFS, site selection, environmental and regulatory approvals.
Should the refinery construction not start within five years, Bauxite Resources would have the option to buy back 21% of Yankuang’s bauxite rights, taking its own ownership to 51%, while the Chinese firm would hold 49%.

DJ Alcoa Plans Expand Capacity At Amazon Bauxite Mine In 2011
Trading Markets (press release) - Nov 25, 2010
BELEM, Brazil, (Dow Jones Commodities News via Comtex) --
Aluminum producer Alcoa Inc. ( AA | PowerRating) plans to expand bauxite production from its Juruti mine in Para state, in the Brazilian Amazon, to 3.3 million metric tons a year from 2011, a company geologist said.
Studies also continue on expanding the mine to a capacity of up to 6 million tons a year, said Clodoaldo Castro, geological technician at Juruti, during a mining congress in Para state.
Juruti started production in June 2009 with a capacity of 2.6 million tons a year of bauxite, the mineral used to produce aluminium, in an investment of approximately $1 billion.
All output is currently shipped to feed the Alumar alumina refinery and primary aluminum smelter at Sao Luis, Maranhao state, a joint venture between Alcoa and BHP Billiton Plc (BHP.LN), where bauxite refining capacity was recently expanded. The smelter produces aluminum mainly for export.
Juruti is currently operating with two production lines. A third and possibly fourth line would need to be installed to reach output of 6 million tons a year, Castro said.
The cost of expansion to 6 million tons a year has been estimated at $300 million, because existing transport infrastructure to accommodate the extra production is already in place.
Alcoa is unlikely to install a refinery at Juruti because of energy supply limitations in the region, Castro said.
-By Diana Kinch, Dow Jones Newswires. Tel: 55 21 7564 4495, diana.kinch@dowjones.com
(Dow Jones Commodities News via Comtex) --
Aluminum producer Alcoa Inc. ( AA | PowerRating) plans to expand bauxite production from its Juruti mine in Para state, in the Brazilian Amazon, to 3.3 million metric tons a year from 2011, a company geologist said.
Studies also continue on expanding the mine to a capacity of up to 6 million tons a year, said Clodoaldo Castro, geological technician at Juruti, during a mining congress in Para state.
Juruti started production in June 2009 with a capacity of 2.6 million tons a year of bauxite, the mineral used to produce aluminium, in an investment of approximately $1 billion.
All output is currently shipped to feed the Alumar alumina refinery and primary aluminum smelter at Sao Luis, Maranhao state, a joint venture between Alcoa and BHP Billiton Plc (BHP.LN), where bauxite refining capacity was recently expanded. The smelter produces aluminum mainly for export.

Contracts awarded for aluminium complex
Creamer Media's Engineering News - 26th November 2010
Engineering firm Fluor Corporation won a series of contracts from a joint venture (JV) comprising Saudi Arabian mining firm Ma’aden and aluminium smelter Alcoa to provide programme management consultancy (PMC) and engineering, procurement and construction management (EPCM) services.
The projects are related to the development of the integrated Ras Az’Zawr aluminium complex. The super project is worth about $10,8-billion and will
include a bauxite mine, an alu-mina refinery, an aluminium smelter and a rolling mill. Fluor reported booking about $3-billion in the second quarter of 2010, covering the scope of work for four separate aspects for the Ras Az’Zawr complex.
Once completed, the super project will include a bauxite mine with a yearly capacity of four-million tons at Al Ba’itha, a 1,8-million-ton-a-year refinery, a 740 000-ton-a-year smelter, and a rolling mill with a capacity of up to about 460 000 tons a year.
Fluor’s scopes of work includes providing overall PMC services for the development of the entire Ras Az’Zawr aluminium complex, providing EPCM services
in a 50:50 JV with Australian project house WorleyParsons, for the mine and alumina refinery, with an expected delivery date in the fourth quarter of 2013, and providing standalone EPCM services for the site’s rolling mill, also expected to be complete by the fourth quarter of 2013.
Fluor reports that it will also provide standalone EPCM ser-
vices for the Ras Az’Zawr site’s integrated infrastructure.
“The mining and metals sector continues to be a highlight for Fluor and the start of this significant project, in a key
region of the world, is another sign of the strengthening global economic recovery,” says Fluor Corporation COO David Seaton.
“We are extremely proud of our team for having been awarded this prestigious project. The Ma’aden-Alcoa JV has expressed great confidence in our team, by the size and scope of these awards, and we look forward to helping the companies implement their vision to realise one of the world’s largest, vertically integrated metals projects,” Fluor Industrial business group president Dwayne Wilson says.
Fluor will execute the engineering for the Ras Az’Zawr projects from its offices in Al Khobar, in Saudi Arabia; New Delhi, in India; and Greenville, in South Carolina, with support from other global Fluor locations.

Ormet Announces Restart of Aluminum Smelting Capacity
MarketWatch (press release) - Nov 24, 2010
HANNIBAL, Ohio, Ormet Corporation, an independent U.S. producer of aluminum, announced its intention to restart the two idled potlines at its Hannibal, Ohio, smelting facility. The restart preparations will commence immediately with the process expected to be completed in the first quarter of 2011, bringing the smelter to full production capacity.
To support the increase in production, Ormet will be adding greater than 100 positions to employment levels at Hannibal. The openings will be filled through recall from lay-off and new hiring.
Mike Tanchuk, Ormet's president and CEO commented, "We plan to produce about 80,000 metric tonnes of additional metal next year with this restart. While this is a very small amount of aluminum on a worldwide scale, this step is important to Ormet. We are very pleased to deliver this good news to about 100 families during the holiday season."

NALCO sells 180000 tonnes alumina to Alaska Metals
SteelGuru - Thursday, 25 Nov 2010
Reuters reported that India's National Aluminium Company Limited sold 180,000 tonnes of alumina in a long term contract for 2011 at 15.92% of the monthly average LME aluminium price on an FOB basis.
A company source said that "Switzerland based Alaska Metals has purchased the alumina for delivery in batches through 2011. The number of bids received for the tender was eight."
Last month, NALCO had finalized a long term export contract with the same buyer for supply of 210,000 tonnes of alumina through 2011 at 16.26% of the monthly average LME aluminium price on an FOB basis.

Ghana to restart Valco aluminium smelter next year
International Business Times - November 24, 2010
Ghana plans to restart its Valco aluminium smelter next year as a prelude to building an integrated aluminium industry as world metal prices and its own energy resources improve, the government said on Wednesday.
The 200,000 tonne per year smelter with six potlines has been shut since March 2007, largely due to weak metal prices and power shortages caused by low water levels in the vast Volta hydropower dam.
Energy Ministry spokesman Edward Bawa said cabinet approved the restart of the smelter next year, initially on two potlines and ramping up later.
"Valco is presently negotiating with the three power utilities on power requirements and the relevant tariffs and we expect the company to restart immediately as soon as they have agreed on a price," he said, giving no specific date.
The smelting process for aluminium is very power-intensive. It occurs in electrolytic cells or pots, which are linked to form potlines.
Bawa said the Energy Ministry initiated the restart plans following an improvement in the country's power reserves.
"Presently, we are generating 2,085 megawatts of power against our peak period demand of 1,300 - 1,400 megawatts," Bawa said, adding that an addition of 275.5 megawatts installed capacity last year greatly helped to buoy the supply system.
Aluminium traded at $2,262 a tonne in London at 1522 GMT. Prices of the metal, which is used in used in transport and packaging, have risen from levels below $1,300 touched in early 2009 during the global economic crisis.
Ghana fully owns Valco after buying Kaiser Aluminium's 90 percent stake in 2004 for $18 million and acquiring the outstanding 10 percent stake from U.S. aluminium maker Alcoa four years later for $2 million, with plans to establish an integrated industry including a 2-million tonne/year alumina refinery.
Bawa said the cabinet also directed the Minister for Energy to develop a roadmap for the implementation of an integrated aluminium industry and liaise with the Minister for Finance to address fiscal issues.
Ghana, the world's second largest cocoa producer and Africa's number two gold miner, is targeting a double-digit growth next year with commercial oil production due to start next month from the giant Jubilee field.
The government said it would use gas from the Jubilee field to support the integrated aluminium industry, which also consists of a bauxite mine, a 1,200 megawatt power station and upgrade the railway system between the capital Accra and major towns leading to the northern part of the country.
Trade Minister Hanna Tetteh recently told parliament that metal prices, which had slumped in the past, were improving and that Valco was in a good position to make profit if restarted.

UAE aluminium smelters confirm long-term commitment to Japan
WAM - Emirates News Agency - 25-Nov-2010

Total export volume to Japan from the two companies is forecast at about 234,000 metric tonnes in 2011." As a start-up operation, EMAL will leverage DUBAL's technical know-how and successful market strategy, which is to become the preferred supplier to its chosen customers. "Our customer service philosophy and focus on our core competencies remain unchanged," says Kalban. "This includes adhering to the highest quality standards in our products and services; production flexibility to meet our customers' needs; on-time delivery; and operational competitiveness." Importantly, DUBAL and EMAL's products are complementary. Comprising high purity sow and ingots, extrusion billets, sheet ingot and re-melt ingots, the result is a broadening of the overall metal offering to the market. "Although both companies produce extrusion billet, differences in the actual range of products manufactured by DUBAL and EMAL allow greater flexibility in billet production, plus the potential to introduce new alloys," explained Kalban. "Moreover, the combined extrusion billet capacity of 1.1 million metric tonnes per annum will make DUBAL and EMAL the largest independent supplier of extrusion billets to global markets." The inclusion of sheet ingot in EMAL's product mix will create new business prospects by opening avenues in the flat rolled product (FRP) business. "We foresee major growth opportunities in this sector as a result of growth in consumption as well as evolutionary trends in the industry," continues Kalban. "Our combined operations will therefore be well-placed to fulfil more metal needs in Japan and elsewhere in the world giving great potential for growth in our individual and collective market share." In keeping with the global aluminium industry, the Japanese market faces several challenges notably sustaining competitiveness, securing a long-term supply of metal and being aligned with a global supplier who is not a competitor. According to Kalban, EMAL and DUBAL fit the bill on all three counts. "Our long-term, proven commitment to the Japanese market together with our understanding of these challenges and our reputation for innovative solutions places DUBAL and EMAL in good stead to be a strong partner for our existing as well as new customers in the region," he says. "This trade visit to Japan also demonstrates both companies' determination to promote UAE industry while strengthening relationships and co-operation between the two countries." WAM/TF

China Aostar Aluminum Shuts 30% of Capacity For Maintenance
Bloomberg - Nov 24, 2010
China’s Aostar Aluminum Co. will suspend 30 percent of its aluminum production capacity starting from today to conduct maintenance and repairs, its parent Guangdong Golden Horse Tourism Group Stock Co. said.

“The production cut won’t have a big impact on the earnings of the listed company,” said the parent in a filing to the Shenzhen Stock Exchange today. Resumption of the 50 shuttered electrolytic cells will depend on the market and whether the timing is beneficial, according to the statement.

Guangdong Golden Horse Tourism Group said in April it planned to sell its 40 percent stake in the aluminum smelter located in Sichuan province. Aostar has an annual aluminum production capacity of 250,000 tons, according to the company profile on its website.

--Helen Sun. Editors: Richard Dobson, James Poole.

To contact the Bloomberg News staff on this story: Helen Sun in Shanghai at hsun30@bloomberg.net

To contact the editor responsible for this story: James Poole at jpool4@bloomberg.net

Rusal to Buy 33% Stake in China North Industries Affiliate
BusinessWeek - November 24, 2010
(Bloomberg) -- United Co. Rusal will acquire a 33 percent stake in Shenzhen North Investments Corp., an affiliate of China North Industries Corp., according to a statement to the Hong Kong stock exchange from the Russian company.
Rusal plans to form a aluminum alloy production venture with the Chinese company and will likely hold at least a 51 percent stake, the statement said. To contact the editor responsible for this story: Bloomberg News at gturk2@bloomberg.net

Alba sees more iron content after repairs
Trade Arabia - 22 Nov 2010
Aluminium Bahrain (Alba) said on Monday an emergency repair has led to higher iron levels in some of its production, however Asian customers affected agreed to continue buying Alba's products.
Alba runs a smelter in Bahrain producing some 850,000 metric tonnes annually said in a statement that an emergency repair in August forced it to shut down one of its production lines.
It said that following the outtage some pots remained unstable, leading to higher iron levels in the production.
Alba said this affected about 20,000 tonnes, or less than 7 per cent of its production since the incident, and that it aimed to reduce iron levels to previous levels by year-end.
It said this affected a number of customers in Asia, while no customers in Europe or the Middle East were affected.
'These higher iron levels were outside of the lowest iron specifications impacting a limited number of customers in Asia who were asked for a temporary waiver to accept slightly higher iron content in the shipped product,' it said.
'The customers approved this temporary request and accepted supply with no change in commercial terms or volume,' it said.
Alba is the fourt-largest aluminium producer globally and accounted for some 35 percent of production in the Middle East last year, according to research by Bahrain-based Securities and Investment Company (SICO) research.-Reuters

Vimetco operating profit up 16% in first 9 mths
Stock Market Wire - 22-Nov-2010
StockMarketWire.com - Dutch-based aluminium products group Vimetco said its operating profit rose 16% to $142m from $122m in the nine months to September.
Sales for the period were $1,661m, up from $1,048m. The increase was mainly due to higher aluminium prices, increased premium and higher quantities sold as a result of bigger production capacities and increased demand on international markets.
Cost of goods sold increased to $1,429m from $871m, mainly due to the increase in sold quantities and higher costs for raw materials.
EBITDA was $233m, against the previous $204m. Net profit fell to $26m from $48m.
Vimetco said the aluminium market showed signs of recovery during the period, with LME pricing increasing from a low of $1,900/tonne to a high of $2,300/tonne.
As a result of the improved aluminium demand, the company's output reached 657,000 tonnes in the first nine months, from 429,000 tonnes in H1 2010.
Vimetco continued its focus on higher added-value products, with the production of processed aluminium reaching 103,000 tonnes, already beating the 2009 full-year level.
The group said it had worked to secure the supply of raw materials, with Zhongfu Power acquiring a majority stake in some coal mines through one of its subsidiaries.
It had consolidated the financing structure of its Romanian operation by signing a $180m syndicated loan agreement with EBRD.

UAE aims to grab a slice of global aluminium production
Kipp Report - 22-Nov-2010
Abu Dhabi-based Emirates Aluminium (EMAL) expects to complete a capacity expansion plan that will help its current output triple to 700,000 tonnes, by the end of this year, a company executive said on Tuesday.
The company produces more than 200,000 tonnes from its phase one greenfield smelter.
“By December will be have all the pots ready to produce 700,000 tonnes and the actual 700,000 will be reached by the start of 2011,” Yousuf Bastaki, vice president of projects at Emal told Reuters on the sidelines of an industry conference.
“There are no delays to these plans and we are on track to complete them,” he added.
Emal first started production from its $5.7 billion project located at Al Taweelha in Abu Dhabi in January.
The company is a 50-50 joint venture between Dubai Aluminium Company Limited (Dubal) and Mubadala Development Company (Mubadala), Abu Dhabi’s investment vehicle.
Emal is expected to be the world’s largest single-site aluminium smelter complex with this project. The first phase will have a capacity of more than 2,000 megawatts of electricity.
The second phase will increase capacity to 1.4 million tonnes of aluminium per year and is expected to be completed in 2013-2014.
(Reporting by Amena Bakr; Editing by Humeyra Pamuk)

Aluminum May Fall to $2018 Support Level: Technical Analysis
BusinessWeek - November 19, 2010
(Bloomberg) -- Aluminum may fall to about $2,018 a metric ton after last week’s decline from a two-year high, implying a 13 percent drop from current prices, according to technical analysis by Commerzbank AG.
The attached chart shows aluminum has slid 7.2 percent from $2,500 a ton on Nov. 11. The metal may fall to its 55-week moving average of $2,164 and a 20-month support line at $2,018, Commerzbank said in a Nov. 17 report.
“Aluminum saw a minor break into two-year highs and was rejected,” Commerzbank technical analyst Karen Jones said in the report. “The divergence of both the daily and weekly relative strength index implies that the market has charted an interim top.”
Aluminum for three-month delivery traded at $2,320 at 10:21 a.m. on the London Metal Exchange, taking its gain this year to 4 percent. The metal is used in cars and airplanes, packaging and construction. The price on Nov. 11 was the highest since September 2008.
Its 14-day relative strength index was at 45 today. Some analysts view a level of 70 as a sign that prices may be poised to drop, and a level of 30 as an indication of possible gains.
In technical analysis, investors and analysts study charts of trading patterns and prices to predict changes in a security, commodity, currency or index.
--Editors: Claudia Carpenter, Nicholas Larkin
To contact the reporter on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net.
To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

Vietnam delays maiden alumina plant by four months to June 2011
Platts - Sydney (Platts)--19Nov2010
Vietnam has delayed completion of the country's maiden alumina refinery by about four months to June 2011, with test runs and exports now slated from July, a company source said Friday.
The 600,000 mt/year plant in Lam Dong province in the country's south is being built by Vietnam National Coal and Mineral Industries Group, or Vinacomin.
The state-owned company expects to operate the plant at half its production capacity for the first six months to a year of its start up. Vinacomin is hoping to ship over 50% of the plant's output to China, and is also eying outlets in the Middle East.
At least one aluminium producer in Southeast Asia has said it would be wary of using Vinacomin's alumina during the plant's commissioning phase.
The alumina exports will initially be shipped via Go Dau port in Dong Nai province, to be switched to another at Binh Thuan province that may be completed around 2014.
The refinery's building contractor is China's Chalieco, the engineering arm of metal group Chalco.
Vinacomin started construction early this year on a second alumina refinery in Dak Nong province also in the country's south. The 600,000 mt/year plant is to come online in 2012-2013.
There are no immediate plans for investments in local aluminium smelters due to Vietnam's inadequate electricity supply, so Vinacomin will be exporting all of its alumina. Lam Dong and Dak Nong are about 100 kilometers apart.
--Joanna Lim, joanna_lim@platts.com Similar stories appear in Metals Week.

Alcoa Is Hiring
KWQC 6 - 18-Nov-2010
It's an encouraging sign about the Quad City economy. Alcoa announced Thursday it's hiring new people at its Davenport Works Plant.
The company says it plans to hire 101 new production employees to begin work in December. They are needed to meet new, incoming business at the aluminum plant in Riverdale, Iowa. The announcement is significant since these are new hires. The company has already called back all of the workers it laid off during the economic turndown.
Alcoa Davenport Works makes aluminum sheet and plate for aerospace, defense and transportation industries.

Aluminum consumption in Russia will grow by 22pct in 2011 - UC RUSAL
SteelGuru - Thursday, 18 Nov 2010Prime Tass quoted UC Rusal as saying that consumption of aluminum in Russia and CIS will grow by 22% to 979,000 tonnes in 2011 compared to the forecast for 2010, first of all due to further development of machine manufacturing, construction and packaging industries.
According to the forecast of RUSAL, sales of aluminum in Russia and CIS countries will grow by 22% in the next year in connection with firm growth of the markets while export of aluminum to reduce by 100,000 to 150,000 tonnes. For 2010 the company expects aluminum consumption in Russia and CIS to boost generally to 51% to 800,000 tonnes compared to 531,000 tonnes in 2009.
RUSAL forecast that cumulative annual growth of demand for aluminum in Russia from 2011 to 2015 at the level of 8%. Aluminum prices will remain at the same level USD 2300 per tonne till the end of 2010 due to high demand and also in account of going on weakening of US dollar exchange ratio which stimulates investors to prefer commodities markets. (Sourced from Prime Tass)

Aluminum products to grow to double by 2020 - Alcoa
SteelGuru - Thursday, 18 Nov 2010Reportedly, Alcoa predicted the aluminum products would grow to double in the next decade on the increasing demand for aluminum in China, Brazil and other emerging countries.
Mr Klaus Kleinfeld CEO of Alcoa said that the aluminum consumption in transportation, buildings and packaging would dramatically increase. Meanwhile, they forecasted that extra USD 2.5 billion are for rolled products used in transportation consumer electronics and other products by 2013 and extra USD 1.6 billion are for engineered products and solutions. (Sourced from YIEH.com)

Call to re-open VALCO
Ghana Broadcasting Corporation - The Tema Traditional Council has appealed to the government to consider reopening the Volta Aluminium Company, VALCO.
The Council says the continuous closure of the company does not only affect employees and their dependents but is also collapsing the aluminum industry in the country.
A statement signed by the Tema Mantse, Nii Adjei Kraku, says the Traditional Council believes re-opening the company will be government's Christmas gift to workers and the numerous downstream aluminum industries that depend on VALCO for raw materials.
The statement said VALCO was shut down as a result of the power crisis that the country experienced from 2006 to 2008. But the water level at the Akosombo Dam has improved to the extent that the VRA is spilling excess water.
The West African Gas Pipeline and the production of power by the independent private power producers are clear points that there is enough power in the system and VALCO can be reopened.

Aluminum and the Self-Supporting Price Mechanism
MetalMiner - November 17, 2010 A Reuters report last week advised that aluminum smelters were expecting increased power supplies this week as the authorities turned power supplies back on to a number of base metal producers. China’s monthly production of primary aluminum already rose 3.1% to 1.21 million tons in October, up for the first time in five months and the only base metal to see a monthly gain. Spot aluminum prices in China have risen over the last two months as they have done elsewhere in the world. They now stand at some 16,640 yuan per ton according to the report and a major smelter is quoted as saying with the cost of production around 15,500 to 16,000 yuan per ton, smelters are keen to restart production.
Klaus Kleinfeld, chairman and chief executive of Alcoa, is rather hoping they won’t. At the US producer’s Investor Day last week, he is reported as predicting China will curtail another 600,000 tons of aluminum smelting capacity before the end of 2010, on top of 700,000 tons Alcoa believe have already been shut down in an effort to meet national energy efficiency and emissions targets. Stating that the global aluminum market is now in balance and with demand growth resuming on a trend of 6.5% compound for the next ten years, Alcoa is clearly not expecting Chinese capacity to upset the party. In fact, Mr. Kleinfeld went on to say that not only was he expecting in excess of one million tons of capacity to be idled, but he did not expect it to all come back on stream next year, although it was not clear why. If the previous report is correct and smelters are profitable at prices in excess of 16,000 per ton, why would they not restart idled production once power is made available? Only two developments are likely to get in their way: the first if power prices were increased further – raising the bar on the 15,500-16,000 per ton cost of production, and the other would be if global aluminum market prices fall as they briefly did, for example, at the end of October to $2300 per ton (15,250 yuan per ton) which would put them below the cost of production by the above measure.
A sudden flight to safety at the end of last week, fueled by fears of credit tightening in China and debt problems in Europe, specifically Ireland, led to a sell-off in metal prices as the dollar strengthened. If this is the start of a trend or merely a correction to a month of gradually strengthening prices remains to be seen; many analysts are expecting aluminum prices to be over $2500 next quarter, some suggest over $2600. If that is the case, the probability is much of the idled production will come back on stream just as soon as the power is made available. Conversely, lower prices due to currency and debt fears could have a limited downside if it results in Chinese smelters staying on the sidelines and potentially pushing the global market marginally into deficit.–Stuart Burns

First Bauxite Corporation Enters Into Commitment Letter With Resource Capital ...
MarketWatch (press release) - 16-Nov-2010
VANCOUVER, BRITISH COLUMBIA, Nov 16, 2010 (MARKETWIRE via COMTEX) -- FIRST BAUXITE CORP. ("First Bauxite" or the "Company") (tsx venture:FBX)(frankfurt:FBI)(berlin:FBI) is pleased to announce that it has entered into a binding commitment letter with Resource Capital Fund V L.P. ("RCF") for a two tranche convertible loan facility of up to US$28 million. The facility will be used primarily to fund further development work including detailed engineering, reserve definition, equipment procurement and such further work as may be required to secure bank financing and final permitting over the known refractory-grade bauxite deposits in the Bonasika Mining Licence and the Waratilla-Cartwright Prospecting Licence in Guyana.
The proposed facility will be comprised of a first tranche of US$8 million principal amount of unsecured convertible notes (having a five year term, bearing no interest), which notes will be convertible into common shares of the Company at a conversion price of C$0.83. Upon completion of certain conditions precedent, RCF will have an option to make an additional US$20 million investment to subscribe for additional convertible notes in the aggregate principal amount of US$20 million, which notes will be convertible into common shares at a conversion price equal to the greater of:
1. the maximum discount permitted by the TSX Venture Exchange (the "TSXV"), but in any event not less than a 20% discount to (i) the volume-weighted average closing price of the Company's common shares on the TSXV for the 20 trading days preceding the day on which the RCF exercises its option to acquire the second tranche notes; and
2. C$1.245 (150% of the conversion price for the first tranche notes),
provided that,
3. the second tranche conversion price will not be greater than C$2.00 per share; and
4. the second tranche conversion price will be reduced as necessary to ensure that the common shares issuable on conversion of the second tranche notes will comprise not less than 12.5% of the Company's common shares calculated on a fully diluted basis following the issuance of the second tranche notes based on the second tranche conversion price.
Upon the closing of the first phase of the financing, RCF will have the right to appoint one nominee to the Board of Directors of the Company.
The Company has agreed to pay to RCF, in cash, an establishment fee in the amount of 3.75% of the proceeds of each tranche of the facility. If the first phase of the financing is not closed as a result of the failure to satisfy the conditions precedent, the Company will reimburse RCF for its actual costs in connection with the facility to a maximum of US$100,000.
Completion of the proposed financing is subject to a number of conditions, including completion of satisfactory due diligence by RCF, receipt of all necessary TSXV and other applicable regulatory approvals, receipt of all necessary shareholder approvals, and the execution and delivery of definitive agreements. It must be noted that the proposed facility by RCF and the existing active financing facility by Pacific Road Resources Funds (announced on June 4, 2009) are constructed on a parri passu basis and thus on same business terms. It is anticipated that the first tranche will close on or before December 31, 2010.
Yannis Tsitos, President of First Bauxite commented: "The First Bauxite team is executing its strategy of becoming a significant new producer in the sintered refractory bauxite industry. Securing this level of investment is a strong expression of confidence in our business model, future product and current resources. This facility allows us to maintain momentum and pursue our plans in the short and medium time framework. Resource Capital Funds are private equity funds supporting mining companies throughout the globe across a diversified range of mineral commodities inclusive of industrial minerals, and run by highly experienced professionals. Following the necessary approvals by the Exchange and our shareholders, the execution of definitive agreements and the closing of this financing, Resource Capital Funds will hold a significant part of the issued capital of the Company. We are very pleased to have the financial support of this major resource group and we will welcome their nominee on our Board."

About First Bauxite
First Bauxite Corporation /quotes/comstock/11v!e:fbx (CA:FBX 0.93, +0.06, +6.90%) is a Canadian natural resources company engaged in the exploration and development of bauxite deposits, through resource discovery and mining within a niche industrial market. The company has its head-office in Vancouver and its current assets in Guyana, South America and is managed by experienced geoscientists and business development professionals with worldwide experience in the exploration and mining business across a number of mineral commodities. The mission of First Bauxite is to become a near term, medium size producer and supplier of high quality refractory grade sintered (calcined) bauxite. First Bauxite controls a large land package in Guyana's historical coastal bauxite belt, including the Bonasika Mining License and the Waratilla-Cartwright Prospecting License, covering deposits which were drilled in 1940's-60's by ALCAN and which host near surface deposits of refractory grade bauxite. The Company has recently completed a Feasibility Study over the Bonasika Project and announced its results on July 29, 2010. The Feasibility Study defines and confirms the viability of an operation based on sequential mining of the three (3) bauxite deposits located on the Bonasika Mining License by open-pit, truck and excavator mining, with the mined ore trucked for processing at a central wash plant facility located less than 2 km from the Bonasika 1 & 2 pits. The wash plant concentrate will be transported 23 km to the sintering plant and load out facilities at Sand Hills. The Mine will operate at a production rate of 298,500 metric tons ("tonnes") of raw, dry bauxite per year or 1,148 tonnes per day, the wash plant will produce 162,232 tonnes of washed bauxite concentrate and the two vertical pressurised shaft kilns will produce 100,000 tonnes per year of sintered bauxite final product. The Company is currently drilling the Waratilla bauxite deposits to outline the resources and to upgrade the historical reserves to NI 43-101 compliance. First Bauxite has additional upside potential to the metallurgical bauxite business, through an option agreement with Rio Tinto Mining and Exploration Ltd, whereby Rio can earn up to 75% interest in the Company's exploration ground by expending up to US$58 million in stages. The Company also recently acquired all of the issued and outstanding shares of Bauxite Corporation of Guyana Inc. ("BCGI") and accordingly, 100% of its interest in the contiguous Tarakuli and Tarakuli North-West Prospecting Licenses in Northeast Guyana, which host an historical inferred bauxite resource of significant size and quality. For further information on First Bauxite Corporation, please visit our corporate website at www.firstbauxite.com.

Vedanta gives Modi's aluminium plant offer a miss
Business Standard - Shubhashish / Mumbai November 17, 2010
Vedanta Resources does not seem interested in setting up an alumina refinery and an aluminium smelter in Gujarat. It has decided against an expression of interest (EoI) as invited by the state-owned Gujarat Mineral Development Corporation (GMDC).
GMDC had invited EoIs for a one-million tonne per year alumina refinery and a half-a-million tonne aluminium smelter project in the Kutch region. The bauxite requirement of the project is supposed to be fulfilled by GMDC through its own mines. The last day for an EoI was November 11.
Vedanta Aluminium’s Chief Operating Officer, Mukesh Kumar, confirmed it. He told Business Standard over phone that: “We want to concentrate our energies in Orissa and, therefore, have decided not to go to Gujarat for setting up of the plant.”
He said bauxite deposits in Kutch were ‘very limited’ and would not be able to support a plant larger than one million tonne of alumina refinery capacity. “This limits the scope for further expansions.”
Kumar said the same project was offered to Ashapura Minechem a few years ago. An official in the know said, “Ashapura Minechem and GMDC had signed an agreement a few years back for this plant, but it failed to take off. GMDC then offered the project to the Adani group, but no headway was achieved.”
In October, the state government persuaded Vedanta to set up the alumina project and offered partnership with GMDC. The state also asked GMDC to scrap its project with Ashapura Minechem in favour of Vedanta.
Vedanta, however, sees no possibility of a plant in Gujarat. Kumar said, “We have tied up with GMDC for bauxite supply of 500,000 tonnes and that is about it.”
Vedanta Aluminium is sourcing half of its bauxite requirement from Bharat Aluminium Company’s mines. The rest is sourced from Maharashtra, Chhattisgarh, Jharkhand and Gujarat.

Venezuela in Talks With China on Power Projects After Shortages
BusinessWeek - November 16, 2010
(Bloomberg) -- Venezuela is in talks with China for 3,000 megawatts of new electricity projects as it seeks to boost production capacity following a crisis earlier thisyear that forced power rationing to avoid a collapse of the national grid.
Chinese companies may work on at least five projects to build hydroelectric reservoirs and thermoelectric plants in Venezuela as the nation seeks to boost capacity by 18,700 megawatts, Electricity Minister Ali Rodriguez said yesterday in an interview in Caracas, without naming the companies involved
Venezuela is strengthening ties with China and tapping Russia for help to build its first nuclear plant to diversify power sources. The El Nino weather phenomenon caused drought earlier this year, cutting water levels at the hydro dams that provide 73 percent of the country’s power. The dry period led to Venezuela’s worst power crisis in six years, prompting cuts to production lines at state-run aluminum and steel companies.
“A crisis like the one we had this year will not be repeated,” Rodriguez said. “All of these investments will allow us to respond to any new problem El Nino might throw up.”
Venezuela is in talks with China on reservoirs that could generate 1,000 megawatts on the Cuchiveros River in the south and the second stage of the development of the Uribante Caparo reservoir that would produce 500 megawatts, Rodriguez said.
Venezuela has continued to suffer power outages even as a wet rainy season filled reservoirs by June. Most of these have been caused by transmission problems, Rodriguez said. The government imported 142 transformers from Siemens AG and Portugal to replace old ones. He said the government is looking to form alliances or buy local transformer factories.
Chinese companies have also agreed to build a 550 megawatt thermoelectric plant in El Vigia, western Venezuela, and a 600 megawatt extension of Planta Centro, the country’s largest thermoelectric plant. Another project would construct a 700- megawatt thermoelectric unit at the El Palito oil refinery.
Each 1000 megawatts produced by thermoelectricity costs about $3 billion to build, while hydroelectric projects cost about $9 billion, Rodriguez said.
Thermoelectric output rose by 1,500 megawatts through November this year, below President Hugo Chavez’s target of 5,000 megawatts as the government looked for short-term solutions to the crisis. The increase boosted domestic consumption of diesel and fuel oil, reducing exports and cutting into oil company Petroleos de Venezuela SA’s profits, Rodriguez said.
Gas Extraction
“We are discussing with PDVSA a plan to accelerate the extraction of gas because demand for diesel is growing,” Rodriguez said. “Using diesel and fuel oil is more expensive because not only does it cut into exports but it also means we have to use hundreds of trucks to transport it.”
Russia on Oct. 15 agreed to build Venezuela’s first nuclear power plant after talks in Moscow between Chavez and President Dimitry Medvedev.
Rosatom Corp., Russia’s state-run nuclear holding company, will help Venezuela to develop nuclear power, including a research reactor, according to the agreement.
Rodriguez said Venezuela would allow international inspectors to visit its reactors during construction.
--Editors: Dale Crofts, Robin Saponar
To contact the reporters on this story: Corina Rodriguez Pons in Caracas at crpons@bloomberg.net. Charlie Devereux in Caracas at cdevereux3@bloomberg.net.
To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net

Hertwich Engineering get orders for ultrasonic billet inspection stations
SteelGuru - Tuesday, 16 Nov 2010
Helical ultrasonic inspection stations made by Hertwich Engineering guarantee and document that aluminum billets are free from defects Hertwich Engineering of Austria has been awarded four orders for ultrasonic billet inspection stations all of them of helical type for volume inspection.
Two stations have already been successfully commissioned for Hammerer Aluminum Industries GmbH at its Ranshofen Austria and Arad, Romania works. The remaining two UT stations are scheduled to be commissioned around the end of 2010 at Dubai Aluminum Company Limited, United Arab Emirates and at IMPOL d d Aluminum Industry, Slovenia, respectively.
All four UT stations are designed for helical inspection of the entire billet volume to detect faults and inclusions, meeting the requirements of ASTM B 594 class A or B with flat bottom hole of 1.2 or 2.0 mm and surface faults 2 mm deep. Billet diameters range from 125 to 450 mm.
The number of probes per unit is determined to meet specific throughput requirements. Fully automated ultrasonic inspection equipment is an indispensable instrument to certify and document that billets are free from defects and to achieve best economy of operation. The volume inspection is mandatory for billet suppliers to the automotive and aircraft industries.

Hydro increases pressure over supply of power
Sydney Morning Herald - November 15, 2010
The Norwegian operator of the Kurri Kurri aluminium smelter in the Hunter Valley is trying to force the state government to sign a new long-term supply contract.
Last week the government allowed the rival Tomago smelter to sign a new long-term contract with Macquarie Generation.
The government blocked Delta Electricity, the supplier of electricity to Hydro Aluminium's Kurri Kurri smelter, from signing a new contract from 2017 to 2027.
Hydro Aluminium said finalising the contract would trigger more than $400 million in capital investment planned between now and 2017, with another $500 million to be spent during the life of the new contract. This investment hinges on the extended power contract being signed by Delta Electricity.
Much of the proposed spending is aimed at improving Kurri Kurri's competitiveness, which has been eroded by the rise in the dollar.
If the government continues to block Delta from signing the contract, it may be forced to explain publicly why it is doing so.
Hydro has taken legal action to block the government from providing bidders for the state's power assets with details of its existing contact with Delta.
Bids close later today for the state's electricity assets.

Ormet mulls restart of Burnside alumina refinery
Metalbulletin.com (subscription) - 12-Nov-2010
Primary aluminum producer Ormet Corp. is considering reopening its 600,000-tonne-per-year alumina refinery in Burnside, La., which was idled in late 2006 due to plummeting alumina prices.
"Current market conditions indicate upward pricing pressure for alumina, and as a result, the company has been studying the economic feasibility of restarting the alumina refinery," the company said in a disclosure statement filed alongside its third-quarter results.
In anticipation of a possible restart, Ormet has entered into a deal with Vale International SA to buy some 500,000 tons of bauxite from its Minera??o Rio do Norte facility in 2011. "The contract,...

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Tomago smelter secures NSW largest-ever power deal
ABC Online - 11-Nov-2010
The Tomago Aluminium smelter near Newcastle has signed the largest energy agreement in New South Wales history, securing its future in the region until 2028.
Tomago Aluminium's existing contract with the state-owned Macquarie Generation is due to expire in 2017, but the new deal ensures Tomago's power supplies will be met for another 11 years.
Tomago CEO Brian Cooper says it means the jobs of more than five thousand people are secure.
"Well, we use 10 per cent of the New South Wales grid, using eight million megawatts a year," he said,
"So it's very significant not only for ourselves, for Macquarie Generation, but also the grid itself that we provide support services to, so it's a real win for the state."
Mr Cooper says he is hoping the deal will enable Tomago to get started on plans to expand operations at the site.
"Well, certainly we've got internal growth plans, and plans to make another 20,000 tonnes of hot metal over the next four to five years."
"But more importantly it allows us to recommence discussions with Bahrain-based Midal, a hot metal customer who wanted to generate 300 jobs in a factory next door to us."

Alcoa predicts aluminum growth to double by 2020
BusinessWeek - 10-Nov-2010
NEW YORK - The aluminum industry's growth should double in the next decade as demand picks up in China, Brazil and other emerging countries, Alcoa Inc.'s chief executive said Wednesday.
CEO Klaus Kleinfeld told participants at an investor gathering that he anticipates improved demand for aluminum in transportation, buildings and packaging.
Company executives also detailed long-range revenue predictions for two business segments.
They forecast $2.5 billion in additional revenue by 2013 for rolled products, which are materials used in transportation, consumer electronics and other products. The second forecast called for $1.6 billion in additional revenue by 2013 for engineered products and solutions.

Alcoa sets alumina contracts under new pricing plan
Reuters Africa - Thu Nov 11, 2010
* Alcoa contracts link price to basket of indexes
* LME price seen unreflective of refining fundamentals
* 2010 demand growth seen up 13 pct from pvs year

NEW YORK, Nov 10 (Reuters) - Alcoa Inc (AA.N: Quote), the world's largest producer of raw material, alumina, has already set some of its long-term supply contracts under a new pricing scheme that unties its link to the aluminum metal price, using instead a basket of indexes to pin down a spot price.
For at least 20 years, Alcoa had set its long-term alumina supply contracts as a percentage of the London Metal Exchange aluminum price. Alumina is the intermediate material that gets turned into aluminum and is made from the raw material bauxite.
"The one thing that you see is the fundamentals of the alumina refining business do not get reflected in the LME price. That's the real fundamental reason why we think there should be a change in how alumina is priced," said Tim Reyes, President Alcoa Materials Management.
Executives at the biggest U.S. aluminum producer spoke to Reuters after hosting a series of presentations for investors on Wednesday.
But executives said fluctuations in the aluminum price do not necessarily capture underlying costs of alumina and that alumina should be priced against its own set of fundamentals.
"The transactions we've concluded include an average of a weighting against multiple price indexes. I think you do that, because as a new system, there's not one defined index out there that everyone agrees is the best index," said Reyes, adding that both buyer and seller needed to feel the alumina contracts were being set at a fair market price.
Historically, Global Primary Products Group President John Thuestad said, volumes of spot alumina trades have been thin and prices not very transparent.
"So people get concerned about whether pricing on a spot index is actually reflecting the real market value," he said.
"As more of the volume rolls off in the long term, we're using the indexes and we have a good way of establishing the price, I think everyone will feel more comfortable," he said.
Over time, the more robust indexes will also stand out.
Alcoa plans to reset contracts with about 20 percent of its alumina customers per year, taking 5 years to fully roll out the new pricing plan.
Reyes said Alcoa's alumina customers require a dependable, long-term source of alumina supply that they will get with a multi-year contract. And Alcoa wants a price that reflects the fundamentals of the alumina refining business.
"Put them together and you can do the multi-year contracts with index pricing," said Reyes.
The alumina contract price will move as the index moves.
"It's not just a matter of price for customers. Other factors are important to them. The customer wants a long-term, good quality source with very strong logistics," said Reyes.
Thuestad added that an aluminum smelter requires a reliable consistent source of raw material, especially new large smelters now being built in the Middle East, Russia or China.
Alcoa executives, across the board, also said they were seeing increased demand for aluminum. For 2010, they project demand growth of about 13 percent over 2009, when global demand fell six percent. China will be this year's biggest driver. Its primary aluminum use likely rose over 20 percent, said Reyes.
Alcoa sees alumina demand nearly balanced with supply.
Longer term, the company forecasts a compound annual growth rate for the global aluminum industry of 6.5 percent by 2020.
The aluminum producer's flat-rolled products division, which supplies automotive, aerospace, consumer electronics and packaging markets, plans to generate $2.5 billion in new revenues by 2013, aiming to grow 50 percent faster than the world market.
Its engineered products division set a revenue growth target of $1.6 billion during the same period, coming from new products, market share gains and market expansions. (Reporting by Carole Vaporean in New York; Editing by Clarence Fernandez)

EU exploring bauxite rescue for Jamaica
Jamaica Gleaner - 09-Nov-2010
The European Union has signalled willingness to help Jamaica fund its bauxite liabilities, after Prime Minister Bruce Golding said on the weekend that he was struggling to identify funds to pay Glencore AG.
Jamaica owes the bauxite company J$2.5 billion under a forward sale arrangement that was negotiated back in 2005, under which the country got funds upfront as a loan to be repaid in 10-year supply contracts at a fixed price.
The EU said it has already approved euro17 million of budgetary assistance for Jamaica this fiscal year, to replace some of the losses of export earnings that resulted from the fallout of the bauxite sector last year, but acknowledged that the challenges might be bigger than the grant funding provided.
"Based on the scale of this loss, and the importance of the bauxite sector for the country's economy, the Delegation is once again in the process of examining statistics to see if additional funding can be granted to the government for the losses incurred in 2009/2010 under the EU's special mechanism called FLEX," the Kingston office said Tuesday.
The FLEX agreement was established under the Cotonou Convention in 2000 to compensate developing countries that are heavily dependent on agricultural and/or mineral exports earnings for shocks causing sudden losses in export revenues.
The EU said it would communicate the decision on whether the progamme can be tapped to help Jamaica as soon as a decision is made.
business@gleanerjm.com

Bauxite Resources considers refinery site
Sydney Morning Herald - 09-Nov-2010
Bauxite Resources Ltd says it will consider all of its landholdings in Western Australia, from Moora north of Perth to Pemberton in the south, in choosing a site for a planned alumina refinery.
Bauxite Resources hopes to have developed the $1.5 billion to $2 billion refinery within five years time, backed by China's Yankuang Corporation, which is expected to facilitate financing through Australian-based Chinese banks.
Bauxite Resources chief executive Barry Carbon said site selection for the refinery would be complete by the end of 2011.
"The refinery could be anywhere from the northern part of our tenements right down to the southern part," Mr Carbon told AAP on Tuesday.
"We're going to go through, hopefully with government agency assistance, all of the possibilities (sites) and there are probably eight to 10 of them.
"And that process will start next month.
"You need water supply, energy supply and bauxite supply, and it needs to be close enough to infrastructure.
"There's nowhere that's got all of those, so you're going to have to transport it (bauxite) ... to get them all together."
Mr Carbon said the refinery would be more modern and safer for local communities and the environment than existing alumina refineries in the southwest, the largest being Alcoa's Wagerup facility.
Wagerup has for many years been mired in controversy and court battles, with locals alleging long-term health problems such as cancer and organ failure due to dust emissions.
Alcoa was in the Perth Magistrates Court in September, fined $45,000 for in 2006 failing to ensure that visible dust from its bauxite refining process did not escape the facility, which was a breach of its obligations under the Environmental Protection Act.
Mr Carbon said existing southwest bauxite refineries were the most profitable in the world, but were based on old technology.
"Of the four refineries in the southwest of the state, I think the only one that's had any issues has been Wagerup," he said.
"It probably didn't have any issues at all until it introduced a different sort of technology for managing the organic matter in its stream.
"(Alcoa's) Kwinana refinery was designed in the 1950s, that's 60 years ago, and because it was so successful, Pinjarra (an Alcoa/Alumina Ltd joint venture) is a modification of that.
"And then Wagerup is a modification of Pinjarra.
"They are successful but really old technology.
"They were designed before there was any environmental regulations and ... energy regulations, and the modern ones that are being built around the world are just light years different to that."
He said Bauxite Resources faced a significant challenge in overcoming community opposition to the company's plans.
A well-funded campaign against it had been "incessant", he said.
The company also faces potential legal claims by current and former shareholders, funded by litigation funder IMF Australia Ltd, in relation to a capital raising last year.
IMF in June said there were no reasonable grounds for Bauxite Resources to assert in raising funds that it would be able to mine bauxite at its Bindoon operations north of Perth at a rate of one million tonnes per annum (Mtpa) by the first quarter of 2010.
The company has so far mined only small amounts of bauxite from the operation.
"I can't predict what they're going to do, but we put out a statement after getting a whole lot of legal advice on the 37 points (raised by IMF) that we thought was without merit and we still think it is without merit," Mr Carbon said.

Century casts metal matrix composite brake drum for military use
High Performance Composites - 11/9/2010
Century Inc. (Traverse City, Mich., USA) announced on Nov. 2 that one of its divisions, Century/3 Plus LLC., has successfully cast what is said to be the first ever light-weight, aluminum metal matrix composite (MMC) brake drum for a military vehicle — the FMTV.
Century has been working with the U.S. Army Tank Automotive Research Development and Engineering Center (TARDEC) to find ways to light-weight vehicle components. Century’s drum is expected to save the FMTV up to 300 lb/136 kg of un-sprung weight, a weight savings reportedly almost unheard of for one component. The TARDEC/Century Drum weighs 45 percent less than its cast iron equivalent and lasts significantly longer.
Century’s Light-Weighting Technology enables the transition of properties found in cast iron and heavy steel to the use of light-weight alloys such as aluminum or magnesium for select components through the use of metal matrix composites. Century’s technology allows for the consistent mass production of the ceramic materials used in MMCs. TARDEC is testing the light-weight drums, which should be completed by the end of the year.
“This is an historic day and a fine example on how business and the government can work together to answer the needs of our men and women serving in the U.S. military,” said Jim McManus, new business development manager, Century/3 Plus LLC

China Sells Aluminum Stockpiles at Below Market Price
BusinessWeek - November 07, 2010
China sold almost all the aluminum ingots it offered from the state reserve at below the prevailing market price, according to the result of a tender posted today on the website of the National Development and Reform Commission.
A total of 95,767 metric tons out of 96,000 tons were sold at an average price of 15,343 yuan ($2,302) a ton through public auctions on Nov. 1 and Nov. 2, said the State Bureau of Material Reserve, also known as the State Reserve Bureau, which comes under the commission. The highest price was 15,920 yuan and the lowest 14,440 yuan, it said.
The government has already sold paper pulp, magnesium, sugar, cotton and corn from state inventories this year in an effort to ease shortages and curb price gains. The sales by China, the world’s largest aluminum consumer, seem aimed at controlling prices following production cuts, Wan Ling, an analyst at CRU International Ltd. said on Oct 22.
“Some of the ingots were produced in the 1970s, so it’s understandable that the price was below the market,” Eric Zhang, an aluminum analyst at Shanghai Metals Market, said by phone. “If you add 500 yuan to 600 yuan in various logistics fees, the prices won’t be that much different from the market.”
Aluminum traded on Changjiang, Shanghai’s largest nonferrous metals market, was quoted around 16,150 yuan a ton early last week when the tender was scheduled to take place.
Metal for delivery in three months traded on the London Metal Exchange declined 0.3 percent to $2,445 a ton at 11:39 a.m. in Shanghai.
Production Loss
Henan province, the largest aluminum producing region, may suspend around 1 million tons of production capacity in the fourth quarter in an effort to meet Beijing’s energy-saving targets, Zhang Fengkui, head of the nonferrous metals office at the Ministry of Industry and Information Technology, said at a conference in Zhengzhou on Oct. 26.
Smelters in the Guangxi region, as well as Qinghai and Guizhou provinces, have also started to shut down aluminum production capacity.
Aluminum production in China may grow to 16 million tons this year, or an increase of 23 percent from 2009, even as the world’s largest producer curbs power supplies to smelters, as new capacity offsets the production losses from power savings, Zhang, the government official, said.
China’s aluminum demand is likely to total 16.8 million tons this year, an increase of 22 percent from 2009, according to Beijing Antaike Information Development Co.
The world’s largest consumer is estimated to have a 350,000 metric ton surplus this year, down from an earlier forecast of 800,000 tons, said Li Yang, an Antaike analyst, on Oct. 27. The bureau will sell 50,000 tons of zinc from state reserves tomorrow.
--Helen Sun. Editors: Richard Dobson, James Poole To contact the Bloomberg News staff on this story: Helen Sun in Shanghai at hsun30@bloomberg.net. To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

DUBAL technology promoted at industry forum
SteelGuru - Monday, 08 Nov 2010
DX Reduction Cell Technology the in house developed innovation proprietary to Dubai Aluminium Company has once again been well received by international industry experts, this time at the 14th International Arab Aluminium Conference and Exhibition.
Mr Ali H A M Al Zarouni VP of Smelter Operations who delivered a technical presentation on the technology at the biennial event hosted this year by Aluminium Company of Egypt in Luxor in Egypt from November 1 to 3.
Mr Al Zarouni's presentation entitled DX Reduction Cell Technology Excellent operating efficiency and superior environmental performance detailed the development of the technology as a solution to a growing need for lower energy consumption, reduced atmospheric emissions and improved productivity and showcased both the proven performance attributes and the current operating statistics of DUBAL's DX Reduction Cell Technology.
He said that operation at 370kA has been fully consolidated at 95.5% current efficiency with daily production yields of 2,873 kilograms of molten aluminium per cell at an average metal purity of 99.94 per cent and specific energy consumption of 13.04 KWH per kilogram of aluminium produced.
Mr Al Zarouni said that the reduced use of fossil fuel has obvious resource and environmental conservation benefits while significantly fewer anode effects compared to lower amperage technologies also contribute to lower perfluorocarbon emissions. Development work on the next generation DX Reduction Cell Technology is ongoing in pilot cells at DUBAL. Several enhancements are presently being tested, with the view to raising amperage levels above 400kA thereby increasing both energy efficiency and productivity even further.
He said that Dubal also had a small display stand in the exhibition held alongside Arabal 2010. Again, attention was focused on the development of and benefits offered by DX Reduction Cell Technology. Senior technical personnel from Dubal manned the stand, to field questions from delegates and other visitors to the exhibition. Strong interest was expressed from delegates, confirming that our technology is attracting the attention of the industry. With DX Reduction Cell Technology being available for licensing, the response is very gratifying.

AMM) Alcoa tries to restore ABI smelter to normal output
Metalbulletin.com (subscription) - 04-Nov-2010
Alcoa Inc. is working to restore normal operations at its ABI smelter in Becancour, Quebec, in an effort stymie the flow of off-grade aluminum from the plant.
"It is ongoing at this point," an Alcoa spokesman said of the company's attempt to resume normal operations at the 400,000-tonne-a-year facility. "We are coming back on track, but we are still working to get the production back completely to normal."
Production problems at Alcoa's majority owned ABI smelter have lasted months as a result of high iron levels in the pots, market sources told AMM. Pittsburgh based Alcoa owns 74.95 percent of the plant, while Rio Tinto Alcan, Montreal, owns the balance.
The Alcoa spokesman confirmed that the company faced disruption to some deliveries because of the off-grade material, but declined to comment on what percentage of the smelter's output...
Copyright © Metal Bulletin Ltd. All rights reserved.

Vedanta wants Nalco to help it with alumina
Sify - 2010-11-05 01:20:00
After losing out on mining the Niyamgiri hills of Orissa, Vedanta Aluminium has approached state-owned National Aluminium Company, or Nalco.
"Vedanta Aluminium wants to buy alumina from us," B L Bagra, director (finance), Nalco, told Business Standard.
A spokesperson at Vedanta confirmed the move. "Nalco has excess alumina capacity and is actively exporting it. Since we are in short supply of bauxite, we are keen on buying for our aluminium smelter," he said.
Three tonnes of bauxite are required to produce one tonne of alumina and two tonnes of alumina are required to produce one tonne of aluminium. So, Vedanta Aluminium needs 3 million tonnes of bauxite to run its 1-million tonne alumina refinery. Or, to produce at its full capacity of 250,000 tonnes of aluminium per annum, the company needs 500,000 tonnes of alumina.
Since Nalco has a 460,000-tonne aluminium smelter and a 1.57-million tonne alumina refinery, the company is left with around 70,000 tonnes of alumina.
The spokesperson at Vedanta Aluminium said, "We have tied up with GMDC (Gujarat Mineral Development Corporation) for 500,000 tonne bauxite supply, which they will do over nine months time, with a minimum 50,000 tonnes per month. Apart from that, we are sourcing some bauxite from our mines at Bharat Aluminium Company in Chhattisgarh."
"Since this bauxite arrangement is definitely not enough, we have no other alternative but to buy alumina and continue running our aluminium smelter."
An analyst with a domestic brokerage said, "Refining one tonne of bauxite into alumina costs $250 and buying alumina from Nalco will cost at least $350 per tonne. Therefore, buying alumina from Nalco will significantly push up Vedanta’s cost of production of aluminium."

Bauxite Resources Grow 46% at Anglo Aluminum's Koba Bauxite Project, Guinea
MarketWatch (press release) - Nov. 4, 2010
KAMLOOPS, BRITISH COLUMBIA, Nov 04, 2010 (MARKETWIRE via COMTEX) -- Anglo Aluminum Corp. /quotes/comstock/11v!e:alu (CA:ALU 0.29, +0.01, +1.79%) is pleased to report that Indicated Resources for the Koba Bauxite Project have increased 46% to 501 million tonnes having an average grade of 42.90% Al2O3, 2.79% SiO2, and 27.81% Fe2O3. The Inferred Resource of 65.3 million tonnes remains unchanged from the 2009 resource estimate. Additionally, a new Indicated Resource of 129.8 million tonnes grading 48.40% Al2O3, 1.90% SiO2, and 19.80% Fe2O3 has been estimated for the Koumbia Bauxite Project, located approximately 40 kilometres north of Koba. Koba and Koumbia are located in the prolific Boke Bauxite Belt of northwestern Guinea, West Africa.

State and Vimetco at odds over spending in Sierra Leone
Metalbulletin.com (subscription) - Nov 3rd, 2010
A row has erupted between Sierra Mineral Holdings I Ltd (SML), a Vimetco subsidiary mining a vast
bauxite deposit in Sierra Leone, and the government ...

Experts warn of collapse of Egyptian aluminum industry
Al-Masry Al-Youm - 03-Nov-2010
A number of international experts attending the 14th Arab International Aluminium Conference, currently in progress in Luxor, warned that Egypt’s aluminum industry is facing severe Arab and international competition.
The experts advocated that Egypt adopt a strategy that preserves the industry, saying that Naga Hammadi's state-run aluminium factory will be out-of-date within ten years, necessitating substantial investment to modernize.
Conference participants said global firms are currently making significant profits in the growing field. They highlighted energy supplies as the major impediment faced by the industry.
Joseph Blas, an expert and representative for an international consultancy body, said Egypt products 23,000 tons of aluminum annually while other Arab states, some newly emerging on the market, produce over one million tons.
Blas, however, said Egypt's aluminum is of a high quality, and is prefered by purchasers.
Head of Egypt for Aluminium Company, Sayyed Abdel Wahab, said that aluminium prices have experienced recent instability, making it more urgent to provide support to the industry to order to avoid a collapse.
On the other hand, the head of the Holding Company for Metallurgical Industries, Zaki Basyouni, said the Naga Hammadi plant is considered small if compared with other factories in Egypt, although it boasts sought-after expertise. Basyouni called for investing in the plant to generate jobs for Upper Egyptians.
Translated from the Arabic Edition.

EMAL and ADPC welcome arrival of first ship at newly opened EMAL Berth at ...
AME Info - 03-Nov-2010
Emirates Aluminium (EMAL) and Abu Dhabi Ports Company (ADPC) welcomed the first shipment of alumina to the purpose built wharf at Khalifa Port in Taweelah today. The opening of the wharf means that EMAL will now be able to receive shipments of raw materials directly to the Taweelah-based smelter.
The milestone achievement was celebrated by the presence of ADPC Chairman H.E. Dr. Sultan Al Jaber, EMAL President and CEO Saeed Fadhel Al Mazrooei, ADPC CEO Tony Douglas and key guests that were involved in this major milestone.
The shipment of approximately 26,000 metric tonnes of smelting grade alumina arrived aboard the M/V LR Lily from Rocky Point, Jamaica which berthed safely and securely at EMAL berth in Khalifa port.
The first phase of the port, scheduled to open in the fourth quarter of 2012 is operated by Abu Dhabi Ports Company (ADPC). Once complete, Khalifa Port will be a state-of-the-art efficient gateway for import and export. The port will receive all ship sizes, including the largest container ships and bulk vessels. It will accommodate a wide range of cargo, including containers, break bulk, liquid & dry bulk cargos; it will also feature state-of-the-art unloading and storage facilities. It is mandated along a five stage phased development approach.
"Today is an important day for us all. For Abu Dhabi Ports Company, this is a major milestone in the construction of this fine port. For EMAL, it's an opportunity to shorten our supply line. And for the Emirate of Abu Dhabi it's another key step toward true economic diversification envisioned in Abu Dhabi's vision 2030," said Saeed Fadhel Al Mazrooei, EMAL President & CEO.
"We are truly grateful to the EMAL's Ports team and ADPC for their diligent work in completing this project. The port itself is a great asset for EMAL, but in the future it will also benefit other companies operating out of the planned aluminium cluster," Al Mazrooei added.
ADPC CEO, Tony Douglas commented, "This is a landmark occasion not only for EMAL but for Abu Dhabi. As the first ship carrying cargo to arrive through the port we have entered a new era in the development of the Khalifa Port and Industrial Zone which will form one of the major industrial hubs in the region. The presence of EMAL and our ambitions to develop a variety of industrial clusters around such anchor tenants across this site are a long term investment for future generations."
The 800 meter long EMAL Wharf is situated three and a half kilometres offshore with berthing space for two 60,000 ton capacity ships.
It contains a vacuum ship unloader that transfers coke and alumina (the primary raw materials for aluminium production) onto wharf belt conveyor system. Once on the conveyor, the material is transported 4.6 kilometres along the trestle bridge and causeway running from the wharf to the shore, before being delivered directly to the EMAL onsite Silo storage facility.

RI says no extension for Inalum venture
Jakarta Post - 03-Nov-2010
After political rows in Jakarta and a series of protests in North Sumatra, the government has dropped a plan to continue a joint venture with Japan in operating PT Indonesia Asahan Aluminium (Inalum).
State-Owned Enterprises Minister Mutafa Abubakar told reporters on Tuesday that the government would not renew a master agreement on the joint venture, which should expire on Oct. 31, 2013.
“The plan to end the master agreement is based on a schedule. We will convey the decision to Japan. This is a positive conclusion and we appreciate Japan’s cooperation,” Mustafa said.
Inalum, which was established through an agreement with the Japanese government in 1976, operates an aluminium smelter in Asahan, North Sumatra.
The Indonesian government currently owns a 41.12 percent stake in the company, with the remaining 58.88 percent held by a consortium of 12 Japanese companies including Sumitomo Chemical Co. Ltd., Sumitomo Shoji Kaisha Ltd., Mitsui Aluminium Co. Ltd. and Mitsubishi Corporation.
Industry Minister MS. Hidayat, who was appointed to lead the Japan negotiations, was not aware of the government’s decision. Hidayat said the negotiations with Japan were scheduled for Nov. 5.
In a House of Representatives hearing, executives representing the Japanese consortium said they planned to increase the Inalum factory’s capacity from 250,000 to 317,000 tons per year, with the potential for US$367 million in new investment should the contract extension be approved.
Japanese representatives at the hearing asked for a 30-year extension after 2013, with plans to expand the capacity of its aluminium smelting factory and build a 150-megawatt power plant.
With Inalum’s total assets estimated at $1.23 billion, the Japanese consortium’s stake in the joint venture is worth $723 million, according to data provided by the Asahan Authority, an agency established by the Indonesian and Japanese governments to oversee the operation of Inalum.
The private auditing firm Ernst & Young is currently finalizing its audit of Inalum’s assets.
Asahan Authority chief Effendi Sirait said the money needed to buy out the Japanese companies’ stake would be much less than the actual value of the stake because the government could use the company’s own cash to partially finance the takeover. He estimated the government would only need to raise an additional $120 million.
“We will try to get the funds from the state budget. If that is not enough, we will possibly ask state companies [to contribute],” Mustafa said, adding that it would be possible to partner with state companies in the acquisition of shares.
State metal and mineral mining firm PT Aneka Tambang and state steel manufacturer PT Krakatau Steel have been told by the government to prepare to take over Inalum.
Apart from capital, Indonesia has the necessary skills to manage the company after cooperating with Japan for more than 30 years, Mustafa said.
“There was a knowledge transfer from Japan to Indonesia. We have to change if we want to move forward,” Mustafa said.
Of the 250,000 tons of aluminium ingots it produces each year, Inalum sells 100,000 tons to the domestic market.
Sixty percent of Inalum production goes to Japan, and the remainder is distributed to the domestic market. Besides operating an aluminium smelting plant, Inalum also manages two hydropower plants to support the smelting operation.

Gov't seeks buy-in from bauxite sector on LNG use
Government of Jamaica, Jamaica Information Service - Monday, November 01, 2010
KINGSTON (JIS)
Energy and Mining Minister, Hon. James Robertson, met with stakeholders in the bauxite/alumina industry earlier this week as the government looks at measures to reposition the sector to make it more energy efficient through the use of Liquefied Natural Gas (LNG) as an alternative fuel.
Minister Robertson, who spoke to JIS News at his New Kingston office, said that the kind of buy-in that these talks generate will be critical in determining how the sector moves forward.
"I had four individuals looking at where and how we are going to re-position our bauxite/alumina industry and how the buy-in into the new (gas) programme is going to take place," he said.
"We are looking at programmes that from 10 years ago, huge international companies indicated that natural gas could possibly be an easy fix. At that time, they even looked at maps for pipelines that would take natural gas from our south coast all the way to the interior, into Kirkvine (Manchester) and Ewarton (St. Catherine) for example," he informed.
He said that the government was working to re-start the Kirkvine plant with new energy sources.
Jamaica is looking to incorporate the use of renewable energy to reduce the oil import bill, promote greater energy efficiency across the various sectors and boost economic growth.
The National Energy Policy, now before Parliament, calls for a minimum of 20 per cent of the island's energy to come from renewables, "which means that Jamaica will be at 1,400 megawatts (Mw) of installed capacity and at least 300 Mws of that will be coming from renewables", Minister Robertson informed.
Focus is being placed on LNG, which is a cleaner-burning and more cost effective alternative to fossil fuel.
The LNG project will be implemented as a private sector financed, build- own-operate (BOO) project, which is expected to save the country at least US$300 million per year in energy importation costs.
"We are not tied in at this time to a supplier for LNG. There is going to be a procurement process, we are going to be dealing with that; we are way down the wicket on that," Minister Robertson told JIS News.