Jizan aluminum smelter slips behind

Tag : aluminum
August 30, 2008
Jizan aluminum smelter slips behind schedule
Platts reported that detailed studies to support the constructionof a 1 million tonne per year aluminum smelter planned for SaudiArabia's new Jizan Economic City will kick off in the fourthquarter of the year, suggesting that the time frame to build theplant has fallen behind schedule.

MMC Corporation in a statement to the Kuala Lumpur stock exchangeafter markets closed said that "Geotechnical studies for thesmelter and related power plant is expected to commence by fourthquarter of 2008 with completion targeted for the first half of2009.”

In November last year, senior officials working on the project hadtargeted for construction of the USD 3 billion smelter to begin inthe second half of 2008 with completion planned for 2012. It wasn'tclear from this week's project update if the delay to constructionwould push final completion beyond 2012, of if other parts of theproject could be sped up to make up for lost time.

A lot of studies need to be finished in the coming quarter, saidMMC adding that due diligence on technology suppliers, a study onusing seawater for cooling, and a social impact assessment were allstill to be done, as well as a study on power supply stability.Development of a 900 MW power station on site suggests more delaysare possible for the aluminum smelter. The first unit of the plant,which will have three units of 300 MW each, is expected to befinished only in the third quarter of 2012.

The new smelter, which is expected to be set up as Sino-Saudi JazanAluminum when ready for operation, will be 20% owned by MMC.China's Chalco is expected to own 40% of the project, while a SaudiArabian consortium including Saudi Binladin Group will hold 40%.

Separately, MMC said survey work for the site of the integratedsteel complex had started and should be done by the end of thirdquarter of 2008. Steel plant construction is expected to kick offbefore the end of the year.

MMC is developing the economic zone, which lies at the Saudi portof Jizan, along the Red Sea.