| PROPOSED SMELTER MEETS LONG-TERM
ENERGY NEEDS |
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Business
Group: Primary Metal
Region: Middle East |
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The importance of sustainable energy access
was a key component of a Shareholders' Agreement that Alcan
signed in February 2005 with the Oman Oil Company (OOC) and
Abu Dhabi Water and Electricity Authority (ADWEA). Called
the Sohar Aluminium Company Shareholder Agreement, this agreement
is for the development of a proposed 325 kilotonne per
annum aluminum smelter project in Sohar, Oman that includes
an 800 MW gas-fired power station.
In June 2004, Alcan announced that it is committed to a 20%
stake in the joint venture. The project will utilize the most
advanced version of Alcan's highly efficient Pechiney AP35
technology. As such, it provides an excellent opportunity
for Alcan to enhance its position as the leading low-cost
aluminum producer and create further value for shareholders,
while developing and expanding the scope of aluminum production
in this growing and dynamic region of the world. Alcan also
has the option of acquiring up to 60% of a planned second
potline for an additional 330 kilotonnes per annum of aluminum.
Key to the project's sustainability is guaranteed long-term
access to a dedicated power supply on competitive terms and
in a quantity sufficient to meet the energy requirements of
phases I and II of the smelter project. Subject to successful
completion of the project agreements and financing arrangements,
construction is expected to commence in the second half of
2005 and result in first metal production by the end of 2007.
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