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Dubai, United Arab Emirates: The annual value
and volume of strategic raw materials imported by Dubai Aluminium
Company Limited ("DUBAL") through Jebel Ali Port reached record
levels in 2009, boosted largely by the procurement of materials for
Emirates Aluminium Company Limited PJSC ("EMAL") - the high-tech
green-field aluminium smelter development in Al Taweelah, Abu
Dhabi, in which DUBAL holds a 50 per cent share and where Phase I
is currently in ramp-up stage.
So says Masoud Talib Al Ali (Vice President: Supply), who
explains that in terms of a Supply Service Agreement ("SSA")
between the two companies, DUBAL is currently responsible for
sourcing, procuring and managing the logistics relating to the
strategic raw materials required by EMAL - all of which are
imported. "EMAL Phase I has been under construction since 2007. The
core smelter operation comprises 756 electrolytic reduction cells
in two potlines, the construction of which demanded a large volume
of materials for cell lining (cathode bars) and anode purposes,
specifically calcined petroleum coke and liquid pitch. Then,
energizing of the first cells at EMAL and the production of the
first metal took place in December 2009, heralding the start of
substantial import volumes of alumina. As governed by the SSA, we
expect to import 650,000 metric tonnes of calcined petroleum coke,
150,000 metric tonnes of liquid pitch and 3.5 million metric tonnes
of alumina every year on behalf of both DUBAL and EMAL, for the
three-year period from 2010 to 2012."
These volumes are over and above the US$1 billion in strategic
raw materials imported each year by DUBAL through Jebel Ali Port
for use in the company's existing 1,573-cell, eight potline smelter
in Jebel Ali, Dubai, which has an annual hot metal production
capacity of 980,000 metric tonnes. "Our Jebel Ali complex is home
to one of the largest single-site aluminium smelters in the world
and we procure a wide range of strategic raw materials from various
sources around the globe so as to ensure uninterrupted supply for
our operations," continues Al Ali. "Some 40- to 50 per cent of our
total strategic raw material imports each year comprise alumina,
the balance comprising calcined petroleum coke, liquid pitch, baked
anodes, aluminium fluoride, potlining materials, process materials
and refractory items."
Al Ali contends that the combined imports of DUBAL and EMAL
represent the highest volume of raw materials imported through a
single site smelter. Moreover, the entire volume is processed
single-handedly through DUBAL's Port and Materials Handling
facilities, which ships EMAL's material requirements to the EMAL
site in Al Taweelah by road tanker. In readiness for the ongoing
alumina requirements of EMAL Phase I, a 70,000 metric tonne EMAL
alumina silo is currently under construction within the area
dedicated to DUBAL at Jebel Ali Port, as is a 20,000 metric tonne
calcined petroleum coke silo.
"As a joint shareholder in EMAL (Mubadala Development Company
holds the remaining 50 per cent), DUBAL has a vested interest in
supporting this operating subsidiary by leveraging our existing
procurement infrastructure," adds Al Ali. "We have developed a
strong network of suppliers over the 30 years since DUBAL began
operating in 1979, and have a well-established Supply Division
staffed by talented buyers with exceptional negotiation skills. The
combination, together with the substantial procurement volumes,
places us in a solid position to secure optimum prices and on-time
deliveries."
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