Canadian producer Alcan said it has signed a heads of agreement with Ma'aden, a Saudi government investment vehicle, to develop a proposed $7 billion integrated "mine-to-metal" aluminium project in Saudi Arabia.
The project will be based on a bauxite reserve estimated at 90 million tonnes, representing a potential 30 years of mining. It will include a 1.6 million tpy alumina refinery, a dedicated 1,400MW power plant and a 720,000tpy greenfield aluminium smelter. The latter could be expanded to 2.1 million tpy at a later stage.
Alcan would hold a 49% stake interest in the project with Ma'aden holding the balance 51%. Unsurprisingly, the smelter would use Alcan technology in the form of two AP36 potlines at the initial stage and another 4 at a later stage to achieve that 2-million tpy plus capacity level.
The bauxite reserve is located in Az Zabirah in northern Saudi, while the refinery and smelter would be located in the new Minerals Industrial City at Ras Az Zawr, on the east coast of Saudi Arabia.
First metal would be expected during the first quarter of 2011, and first alumina a year later. Next steps will include completing the joint venture agreement and pursuing project financing arrangements for capital costs, Alcan said.
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