Emirates Business 24/7 reported that Qatar is expected to become a major aluminum producer before the end of 2009 when it launches a USD 5.6 billion smelter in December after nearly 3 years of construction.
As per report, the plant at the massive industrial city of Mesaieed, 40 kilometers south of capital Doha will produce nearly 585,000 tonnes per year to be one of the largest aluminum smelters in the world. It consists of a smelter a casthouse and a carbon plant as well as a dedicated power generation plant.
Trial commissioning of the smelter is scheduled for November and production will start in December before the project is officially inaugurated in April 2010 by Qatar's Mr Emir Sheikh Hamad bin Khalifa Al Thani.
Industry sources said that the project was completed on time despite the global financial crisis adding financing was not a problem for Qatar and the venture had already been nearly 80% through its final stages when the crisis rocked the world and forced many countries to suspend key projects. According to the sources, the project's investments had been estimated at USD 3 billion in 2006 before a surge in construction costs prompted a massive revision of the costs to around USD 5.6 billion.
Mr Abdullah bin Hamad Al Attiyah minister of energy and industry of Qatar said that "We consider this project as a landmark in Qatar's industrial history it is one of the largest aluminum smelters in the world. More than 90% of the whole project has been completed and it will be opened and commissioned on schedule thanks to our strategic partnership with Hydro Company. The company will begin production in December."
The smelter in Qatar, which controls the world's third largest gas wealth after Russia and Iran is one of several aluminum projects being carried out in the Gulf as part of ongoing diversification program aimed at easing reliance on unpredictable oil sales and tapping the region's massive energy resources.
Official figures showed that such projects will more than triple aluminum output in the GCC nations in 2020 and allow them to control nearly 13% of the world's total aluminum production. GCC countries which sit atop 45% of the global recoverable crude deposits and over a fifth of the gas reserves currently produce around 2.2 million tonnes of aluminum and new smelters and expansions of existing units will boost their combined output to 4 million tonnes in 2010.
Ms Lulwa Al Misnad acting secretary general of the Doha based Gulf Organization for Industrial Consulting said that "The GCC countries currently produce around 5.4% of the world's aluminum output and the new projects will raise that share to nearly 13% in 2020."
She cited the Qatari smelter as well as a 350,000 tonne aluminum plant which has just been completed in Sohar of Oman. Another major venture is being constructed in Abu Dhabi and will start producing 700,000 tonnes in 2010 before expanding it to 1.4 million tonnes when the smelter is fully completed at a cost of USD 5.7 billion. Saudi Arabia is also in the process of building 2 smelters with a capacity of 1.4 million tonnes per year.
She added that "These projects are part of the GCC's long term strategy to expand their manufacturing sector and diversify their sources of income."
The project is a joint 50:50 venture between the government controlled Qatar Petroleum and Norway's Hydro company which signed an agreement with QP in 2006 to create the Qatalum venture that will build and operate the primary aluminum plant.
