The ENAL Newsletter: Issue 20, 1st Quarter 2002

Issue 20, 1st Quarter 2002

NEWS FROM THE "ENERGY/ALUMINUM INTERFACE"

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Note: Text in bold font constitutes information received since last issue.

Current projects are identified by region. Upcoming projects are grouped by year, then by country. The resulting capacity changes are tabulated and inputted to adjust the World Capacity Matrix Forecast .

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Contents

Major Projects Currently In Progress	Upcoming Projects in Chronological Order		Other Items of Interest
Africa		2006	LME Monthly Al Price Averages
Americas	2003	2007	Mergers & Acquisitions
Asia	2004	2008	Labor Issues
Australia/New Zealand	2005	2009 or still uncertain	China
Europe			CIS
Middle-East			Other News from the Smelter Equipment Manufacturers

Major Projects Currently In Progress

Africa:

Maputo (Mozambique) - Billiton, Mitsubishi and Ind'l Dev't Corp. of South Africa (IDC) decided to proceede with the 253 ktpy expansion. Work is to start at once, completion expected within six months.(EnalPanel) Foundation of 2nd potline has been laid, feasibility studies are in progress. Mitsubishi plans to invest in 2nd line. (MetalBulletin) Full operation is expected around winter 2003. (EnalPanel)
Beira (Mozambique) - Investors identity, energy cost and availability issues are still unclear for the $1.2b Beira smelter (KTD, Bechtel). Feasibility study has yet to reach completion. (EnalPanel)

Ikot Abasi (Alscon, Nigeria) - About $2.2b has been so far invested in the plant. Culprits of the slow delay has been placed on lethargy, bad decisions by previous governments and slow action. (Platt'sMtlWk, EnalPanel) Ferrostal AG, decided to complete the Aluminium complex at Ikot Abasi which stopped production of aluminum products 3 years ago. The plant will soon be commissioned. (Vanguard/All Africa)
Billiton(South Africa) - Cost-cutting measures through equipment upgrades, streamlining ordering, reducing stocks, and staff reduction for the 180 ktpy smelter is planned as Bayside announced plans to increase the capacity of potroom A with a line current increase from 145kA to 168kA after a feasibility study was completed at the beginning of 2000. Implementation of these plans started in June 2001 . Modifications to the paste plant, cathode repair, anode rodding, and gas treatment centers are also included in the program. The Alesa concept modeling results achieve, with max. in-line intensity of 168kA, energy consumption 13.9kWh/kg Al, cell voltage of 4.4 per pot, and line voltage of 1,056V. (LMA,EnalPanel). An envisaged improvement involves that to the pot superstructure. The carbon and anode rodding plants will be affected by the increased in alumina throughput requiring modification of gas treatment. Additional compressors will be commisioned to allow additional dense phase conveying in the potroom. (EnalPanel)

Americas:

Sorocaba/CBA (Brazil)- VSS expansion of 60-70 ktpy in 2001-2002. The expansion will use VSS technology like in the existing lines. For the moment, no prebake technology is envisaged. (EnalPanel) CBA's current 70ktpy expansion will take capacity up to 307ktpy by late 2002. The $400m price tag is large due to the need to invest in hydroelectric plants. (MBM)
Alma (Canada) - 400 ktpy over 2000-2002. Full production has been planned for third-quarter 2001. (MetalBulletin) Alma is equipped with fully graphitized cathode blocks. 350MW of 650MW will be purchased from Hydro-Quebec. The power tariff is not linked to metal prices. According to the plant manager, around 98% of sales will be within North America, mostly to the USA. (MetalBulletinMonthly)
Beauharnois (Canada) - Complete shutdown after 2002, after start up of Alma.
Sebree, KY(USA) - Alcan restarted idle primary aluminum capacity. Primary capacity was brought back by 60 ktpy to the Sebree smelter. Billet production was to increase to 65 ktpy through a $22m project to be completed in an estimated 20 months. The project involves engineering work, a new continuos homogenizing furnace and an automatic billet sawing and stacking system. (LMA)
Goldendale (USA) - Installation of point feeders to VSS pots. Increase in capacity from 167ktpy to around 200ktpy in 2002-2003.
New Madrid, MS (USA) - Possible 4th potline expansion. Bechtel Corporation has received an engineering contract to add an additional potline. This will boost their capacity to 400 ktpy. (EnalPanel) Noranda to increase aluminum production by 15% expected by mid-2002. The switch from two-piece anode to a new single-piece anode process has made this possible in addition to the already 8-9% increase in production seen. The $72m expansion will increase production by 33 kmt/year to 253 kmt/year. A total of 508 pots with 501 pots currently working contain 18-24 anodes depending on anode size. (Platts)
Troutdale (USA) - Revamping of capacity shutdown in 2000 from 2002-2003 according to Alcoa standards. Although Troutdale could be a candidate for Alcoa's inert anode technology, a decision will not be made for two to three years since the technology is still in its experimental phase. (MetalBulletin)
Alcasa (Venezuela) - The revamp of production lines at Alcasa, carried out by Glencore will be finished by the end of 2002. Alcasa is looking for a strategic partner that would allow it to proceed with construction of a fifth production line, which would require investment of more than US$600mn and take production up to 220 ktpy. CVG and Alcasa are analyzing several proposals, including one from Glencore, to develop the new line the work on which could start in 2003. (BNamericas.com – 03/26/02) Glencore presented a project to invest US$600mn to build a fifth production line and double output at aluminum smelter. The project will use Venezuelan V-350 cells technology to boost production of aluminium by some 200ktpy to 410 ktpy primary aluminum. Once approved, there will be a six-month period to coordinate the technical phase of the project, after which construction of the new plant will begin, and take 18 months to complete. (BNamericas.com - 04/29/02)
Columbia Falls (USA) - Glencore's Columbia Falls plans to increase production to two potlines by the first of May due mostly to lower electricity costs. Restarting a smelter is a gradual process of bringing all 120 pots per potline onstream. Once the second potline is fully operational the output will amount to 67.2 ktpy or 40 percent of total 168 ktpy capacity. (The Financial Times - 03/28/02)
Alcoa (USA) - Alcoa plans a slight rise in output of 95 ktpy after restarting two lines of idle capacity at the Ferndale smelter in Washington. (Reuters 04/15/02)

Asia:

Baotou (China) - 50 ktpy expansion under way, to be completed in 2001. Construction of a new 50ktpy line is under way. This project will raise the smelter's capacity to 160ktpy from 110ktpy. (Platt'sMtlWk)
Chongqing (China) - The 60ktpy expansion is completed. Current intensity is 160kA (standard for Chinese prebake lines). (EnalPanel)
Fushun (China) - Fushun Aluminium will complete and start up its new 50 ktpy production line in June-July, which will lift capacity to 135 ktpy from the current 85 ktpy. Fushun originally had a capacity of 110 ktpy in 2001, but had shut down a 25 ktpy line last March to prepare for the upgrade. Phase two will see another 50 ktpy line constructed, which is expected to be completed by year 2003-2004. A final total capacity of 165 ktpy is expected.(Platts)
Jiaozuo (China) - 120 ktpy expansion in 2000-2003, 60 ktpy first phase in 2000. The company planned to replace its existing 60kA (53ktpy) pots with 280kA (122.9ktpy). Dry scrubbing technology and computerized controlled pots were also to be part of the project. Total investment of the project is 2035 million yuan. (www.china-henan.com) Six small unidentified aluminum plants in Henan increased capacity by 134,8 ktpy in 2000. (Reuters)
Lanzhou (China) - New 100 ktpy ingot production line to start the first output anticipated in August 2001. The line was to be finished completely in 2002. (PlattsMtlWk) 100 ktpy prebake line to replace 85ktpy line around 2003. The expansion will raise capacity to 185ktpy, but after some obsolete equipment is shutdown, the capacity will be closer to 160ktpy. The project will cost $169 million and is due for completion by July 2003. (Platt'sMtlWk)
Qinghai (China) - 100 ktpy expansion to 300ktpy in 2001-2002. Qinghai started commercial output on its new 50 ktpy ingot line.The full capacity of 250 ktpy will be reached by end of 2002. (Platts)
Taiyuan (China) - A 80ktpy expansion over 2001-2002, with a shutdown of 15ktpy of old capacity. Taiyuan started construction on its 80ktpy expansion . The new line should be completed by October 2001, raising capacity to about 95ktpy from the current 30ktpy. Once the new line is producing, one of the smelter's 15ktpy lines will be shut down for environmental reasons. (Platt'sMtlWk)
Yongcheng (China) - This smelter continues to enlarge its capacity. (CNNC.cn.net)
Yunnan (China) - Yunnan Aluminum Works is to produce 125 kt of aluminum in 2001. It started to build a new production line with an output capacity of about 300 ktpy. It is planned to be completed in two years and the total aluminium output capacity will be increased to about 500 ktpy by 2003. (Platts)

Zhengzhou (China) - China Great Wall Aluminium Industry Co. completed a primary aluminum project in July 2001 which went into production in August 2001. (CNNC.cn.net) Great Wall has plans to expand alumina capacity by another 300 ktpy line in 2002. (Platts)
Zunyi (China) - A 100ktpy expansion to 132ktpy to be completed in 2002. Construction has been delayed until the first quarter of 2001 due to technical problems. The first 50ktpy of the 100ktpy expansion is still expected to start up by mid-2002, with the remainder to be completed by the end of 2002. In the meantime, Zunyi plans to start an alumina project, with plans to reach 400-600ktpy by 2005. The alumina refinery would start out with a capacity of 200ktpy. (Platt'sMtlWk)
Desheng (China) - 40 ktpy expansion in 2002-2003. Desheng planned to add a 40ktpy expansion project. The line raising capacity to 60ktpy was to be completed by mid-2002. (Platt'sMtlWk)

Emeishan (China) - 150 ktpy expansion to start up over 2002-2004. Emeishan in Sichuan province has revised its ingot expansion plans to reach 300,000mt/year capacity instead of 240,000mt/year by 2005. In 2002 Emeishan has projected an ingot output of 73,000mt. This is a jump of 217% from output in 2001, which stood at 23,000mt .(Platts)

Jiangsu (China) - 100 ktpy greenfield over 2002-2004. Jiangsu Aluminium Plant (owner of the Xuzhou smelter) planned to start construction on a new 100ktpy smelter in 1999, to be completed in 2004. The smelter will be completed in two phases. The first 60ktpy should be ready in two years. (Platt'sMtlWk, ABA)

Henan (China) - New 100 ktpy smelter backed by Hong Kong's Xinyuan and Chinese Yichuan Power Group to begin construction .The $250-490m 300kA plant will be designed by China's Shenyang & Magnesium Design Institute with commissioning expected at the end of 2002. Power is to be supplied through Yichuan Power Group. (MetalBulletin, EnalPanel)

Pingguo (China) - 80 ktpy expansion in 2002, 100 ktpy in 2005. The long-term target is for the plant to produce 1Mtpy of alumina and 300 ktpy of aluminum. (MetalBulletin) Capacity is to rise from 132 to 212 ktpy in 2002. Probability of further expansion to 312 ktpy with a completion date of 2004 is 20%. (ABA) Although Pingguo planed to start work on its smelter expansion to 300ktpy in 2001, it has yet to submit a proposal to the government or to raise funds for the project. (Platt'sMtlWk) Chalco is likely to earn more than US$67 mn in exceptional gains from the sale of a 50 percent stake in its subsidiary Pingguo Aluminium to Alcoa until 2003. (Reuters)
Yanji (China) - 150 ktpy expansion over 2002-2007.
Yunnan (China) - Expansion of 130 ktpy over 2002-2003 (Phase 2). Phase 2 (expansion to 250ktpy) will start once they get final government approval. This project will take approximately two years to complete. (Platt'sMtlWk)
Zhongzhou (China) - 200 ktpy expansion around 2002. (EnalPanel)
Xiezhou (China) - Xiezhou Aluminium now has a total capacity of 112 ktpy. It plans to expand by another 200 ktpy, and aims to start the project by mid-2002. This would take Xiezhou's total capacity up to 330 ktpy by end of 2004. (Platts)
Angul Orissa (India) - 140 ktpy expansion over 2002-2003. The smelter expansion to 345 ktpy is expected to come on stream in May 2002. (MetalBulletin) KHD will supply a complete green anode paste line for the smelter expansion. Kvaerner Process Technology (formerly Buss) will supply a continuous mixer. (AlVerlag) ECL (Ronchin, France), Pechiney subsidiary, has been awarded the turnkey rodding shop contract. This makes a clean sweep for ECL (pot room cranes, anode baking handling system, and the rodding shop). (EnalPanel)
Hirakud (India) - 30 - 60 ktpy expansion in 2002-2004. "Indal has also decided to construct a second captive power plant of 67MW on its own instead of relying on Tata Electric Co." (MetalBulletin) HART (India) received anodes to install process control on all 408 pots including those 198 pots where pot shells were transferred from Belgaum. The transfer means an increase of 28 ktpy to 60 ktpy. Also an additional power plant of 77 MW will be added to the 80 MW. (EnalPanel)

Damanjodi (India) Nalco is expanding the capacity of its Damanjodi plant from 800ktpy to 1.57 million tpy. The first phase (modernization of existing capacity, with an increase to 1.05 million tpy) has been commissioned with technology provided by Pechiney. The remaining capacity increase will result from an expansion. Bauxite mining capacity is also being raised to 2.8 - 4.8 million tpy. (EnalPanel)
Inalum (Indonesia) - Inalum plans to maintain 330 pots of 510 in 2002 because the water levels are expected to remain low. The output is expected to be lower than 160 ktpy. (Platts)
Gjandza (Azerbaijan) - Fondel is expected to raise production at the Gjandza alumina refinery to 150 ktpy from 1.25m tonnes of alunite ore and 300 ktpy from bauxite and output at the Sumgait to 110 ktpy. (LMA) Feasibility studies are still ongoing. A minimum investment of $300m and a figure of $1b have been sought by the government albeit this is unconfirmed. (MetalBulletin) Azeraluminy JSC formed the merger of three state owned Sumgait Aluminium Smelter, the Gjandza Alumina Plant and the Alunite Ore Mining Co. (EnalPanel) Fondel's major shareholder is SUAL. Rusal fights to get control over Gjandza. The refinery still does not produce alumina neither from local Alumite nor from the imported bauxite. (EnalPanel)
Sumgait (Azerbaijan) - Complete revamping of this HSS plant over 2002-2006. Fondel won a tender for the management of Azeraluminy with a long- term $1b investment. A goal is for Fondel to buy the operation upon privatization. (MetalBulletin) The 30 ktpy Sumgait smelter has 164 pots that will need repairs or gradual reactivation. Attempts to encourage restoration of alumina and aluminum production were seen through a government tender by the Azerbaijan government to attract more investors and expertise. (LMA, EnalPanel)
Pavlodar (Kazakhstan) - Kazakhstan Mineral Resources Corp.'s (KMRC) plan to build a smelter in Kazakhstan is still not very advanced. (MetalBulletin) SNC-Lavalin Group , together with Mitsui & Co. are developing the feasibility study for the now estimated $1b smelter. Chinese firms have now expressed interest in the project that will process alumina from Aluminy Kazakhstan. (EnalPanel, LMA) The 215 ktpy greenfield smelter will not be started before the end of 2002 and not completed before 2005 due to incompleted bank feasibility studies, financing (which depends on the feasibility studies) and the period between completion of bank feasibility study and full production lasting 40 months. (EnalPanel)
Zouping (China) - Zouping Aluminium in Shandong expects to complete its phase two expansion works by August, which would double its capacity to 66 ktpy from the current 33ktpy. the plant has plans to further expand ingot capacity to 260ktpy. (Platts- 03/28/02)
Asahan (Indonesia) - Asahan Aluminium predicts a fall in aluminium production at its Indonesian smelter 225 ktpy smelter from 192kt in 2001/02 to around 175-180 kt in 2002/03. (Reuters - 04/10/02)
Guanlu (China) - Shanxi Guanlu secured official approval to expand its aluminium capacity by 200 ktpy to 310ktpy., The expansion of 1bn yuan ($ 120.8 mn) project will start in the first half of 2002 or early in 2003. (Reuters -04/12/02)

Europe:

Husnes (Norway) - A revamping of 115ktpy, permitting capacity to increase to 130ktpy, is under way. Algroup will undertake to increase production from 115ktpy to 130ktpy. The project should be completed by June 2002. (Platt'sMtlWk) Alusuisse's retrofitting expertise will be used. (EnalPanel) The expansion program started by Soral involved an equal stake by Hydro Aluminum and Algroup. (LMA)
Lista (Norway) A revamping of 80ktpy (with additional 10ktpy) at Lista is expected. The conversion of side worked Söderberg pots to point feeder Söderberg pots could be completed by 2001. (EnalPanel) Boosting capacity in Lista (see Mosjøen in 2004) Modernization of the line 1 and 2 with improved magnetic design and point feeders will be completed in 2002. (EnalPanel)
Sual Holding (Russia) - Expected continued production seen by newly restructured Sual Holding. An estimated $12 million was to be spent on converting half of KrAZ's high purity capacity to prebaked technology by 2001, raising production by 21ktpy. The remainder was to be used to convert ten potlines from Söderberg to prebaked technology. Ten potlines had been converted before 2000, another four were being converted in 2001. (EnalPanel, MetalBulletin) It is not correct that ten potlines VSS had been converted to prebaked technology before 2000. It is even doubtful that the existing VSS pots will be converted to prebake in the near future (EnalPanel)
Bratsk (Russia) - Revamping of 860 ktpy with a projected capacity increase of 40 ktpy in 2001-2003. The modernization will consist of further switching to semi-dry paste and extension of process control using Russian algorithm. (EnalPanel) A capacity of 960ktpy is envisaged now after reaching a production rate of 930ktpy in the last quarter of 2000. (EnalPanel) The modernization of 10 pots was done by ITM and K+T engineering but not Algroup. (EnalPanel)
Krasnoyarsk (Russia) - $120 million investment program to increase high-grade aluminum production and convert existing Söderberg potlines to prebaked anode technology. (EnalPanel) So far, Krasnojarsk has converted to prebake: 1 line form VSS, 120 kA (Vami); 1 line from VSS, 160 kA (Kaiser Tech); 1 line from high purity, 120 kA (Vami). Output has risen close to 900 ktpy (EnalPanel)
Sayansk (Russia) - Investigation of the cause of a fire was made by a special commission at Russky Aluminy's Sayansk smelter. One of its anode carbon manufacturing lines was out of operation in the fire that occurred in the green anode pressing plant on 15 June, 2001 that lasted for several days. A back-up stockpile of green anodes for eight to ten days was in place. (LMA)
Sosnovy Bor (Russia) - A new aluminum smelter's feasibility study by US investors began in July 2001 based on usage of the spare capacity at the nuclear power station in Sosnovy Bor. None of the Russian aluminum companies participated. Sosnovy Bor supplies power to the northwestern regions. (LMA) Alutech’s Sosnovy Bor Aluminum Smelter intends to build the smelter within six years. The three stages of the construction would absorb $1 bn between them. Project costs would be recouped in 15 years. It will cost $70 million to build the first 24 ktpy within one year; $540 million to build the second, 180 ktpy to 200 ktpy stage in up to two years; and $390 million to build the final 360 ktpy to 440 ktpy stage in up to two years. The probable site would be the settlement of Koskolovo, 70 km from Sosnovy Bor. (Interfax)
Sayanogorsk (Russia) - Conversion of SWPB to PFPB over 2002-2004. Russian Aluminium is in negotiations with Japan's Itochu and Mitsubishi to co-operate on modernizing SaAZ. The partnership may secure Japanese companies a supply of aluminum from the smelter. (MetalBulletin) Negotiations with Japanese companies are not progressing. A Panelist states that conversion is not the first priority. Rather, it is the expansion by 200-300 ktpy. (EnalPanel)
Shelekhovo (Russia) - Revamping of full capacity in 2002-2004.
St. Petersburg (Russia) - Vsevolozhsk Aluminium may start operations at the beginning of 2002. The approval from the regional government to build the smelter located on the Russky Diesel site is needed. Production of 147 ktpy will be possible with an investment by the British Astromex, which owns the company. Prelimary talks with Lenergo and Unified Energy Systems of Russia have begun for the required 280 mw needed for the smelter(Interfax News Today) An EnalPanelist predicted a period of 40 if not 60 months before the start of production . (EnalPanel) This project has not been a green light as per January 2002. Therefore even if financing problems are solved no metal will be produced before 2005. (EnalPanel)
Kidricevo (Slovenia) - Creation of a second phase of potline C with 80 ktpy for the entire potline is being planned by Talum Kidricevo in the 155 ktpy capacity smelter pending the addition of further equipment and personnel. The potlines, the anode plant, casthouse and aluminum transport capacity are to be upgraded. SWPB pots are expected to be shut down at the same time. (LMA, EnalPanel)
San Ciprian (Spain) - Revamping is underway. The current intensity has already been raised to 148kA (+10ktpy) and a further increase to 160kA is planned in 2001/02. (EnalPanel)
Sundsvall (Sweden) - Conversion of VSS pots to PFVSS during the years 1999-2002. Conversion will take until 2002. (EnalPanel)
Steg (Switzerland) - Revamping with capacity increase of 8 ktpy in 2000-2002. Algroup has decided to prolong operations at Steg at least until the end of 2005 by expanding capacity to 43ktpy from the current 35ktpy. The expansion will cost approximately $12mn and is made possible by the extension of Algroup's power price and supply contract. (Platt'sMtlWk). The aim is to have pots available permitting an increase of current intensity up to 120kA thus giving part of the capacity increase. (EnalPanel) Possible complete shutdown of the smelter as predicted previously appears unlikely after investments of $12m and an upgrade were made to the smelter (EnalPanel)
Lynemouth (UK) - Primary capacity was brought back by 50 ktpy to the smelter. (LMA)
Lochaber (United Kingdom) - Increase amperage from 180 to 200kA, adding 8ktpy to capacity in 2001-2002. (EnalPanel, AlVerlag)
Lannemezan (France) - Complete shutdown in 2002-2004. The smelter is scheduled to be shut down definitely by 2005. (AlVerlag)
Essen (Germany) - Modernization of lines 1 and 2 in 2001-2002. We will assume a capacity increase of 10% (about 10ktpy). (EnalPanel)
Straumsvik (Iceland) - Revamping of busbar arrangement progressing well but was not yet completed (EnalPanel) Alcan's attempts to strengthen metal supply and reduce primary aluminum production costs with expansion of Isal from 162 ktpy to 176 ktpy planned over the next two years. (LMA)
Konin (Poland) - Revamping of 65 ktpy with a capacity increase of 13 ktpy and expansion of 17 ktpy in 2001-02. This depends on Impexmetal, present owner, finding a foreign partner, which is possible. According to Konin, the electrolysis computer control system has started and a new alumina pot-feeding system has been implemented. (Huta Aluminium Konin website)
Kharkov (Ukraine) - Ukrainian Aluminum Ltd (established and owned by Russian Aluminium) is not refusing its obligations in the new smelter construction. Ukrainian Aluminium has said that this smelter must be built for them to remain owners of Nikolayev Plant shares(supplier of 25% of all alumina needed for primary metal primary production). The smelter is expected to have a capacity of 120-180 ktpy, a cost of $3300-4200 per ktpy installed capacity, and a construction lasting from 2002 until 2007. Total investment costs in Russia according to Bechtel, Fluor and SNC are 15-25% lower than other capitalistic countries. (EnalPanel, Metals Russia) Ukraiynsky Aluminium is not to build a new aluminium smelter due to falling
prices for the metal. (Reuters - 04/10/02)
Zaporozhye (Ukraine) - Söderberg to prebake conversion in 2002-03, or complete shutdown in 2008-2009. The project will allow the smelter to raise output by 69% from 93.5ktpy in 1999 to 157.2ktpy. If the new smelter promised by Sibirsky Aluminium comes to fruit, the modernization of Zaporozhye will most likely be discarded. (EnalPanel) Kaiser who completed the feasibility study for the conversion to prebaked technology estimated that the project would cost approximately $200 million, assuming that 60% of the equipment and raw materials are Ukrainian. Funds are expected from the sale of the government's majority stake in the smelter. The Ukrainian government decided to award the 68.01% stake in the Zaporozhye aluminum complex to Kremenchug Automotive Plant (Ukraine), which made the highest bid and received the most merit points. (MetalBulletin)
Aluminij Mostar (Bosnia) - Aluminij secured US$62.6mn loan from Germany's West LB Panmure to buy new machinery and technology to modernize production that should help to reach record output of more than 100ktpy in 2002. Following clarification of its ownership structure, the plant is expected to be privatised in 2003. (Reuters)

Middle-East:

Jebel Ali (United Arab Emirates) - 400ktpy expansion over 2002-2004. Dubal is gearing up for a $1.77bn expansion to boost aluminum capacity by 400ktpy, using their CD20 technology. Named "Heron", the proposed project will boost Dubal's capacity to 936ktpy of primary aluminum. No final decision about the project has been made. (MetalBulletin, EnalPanel)
Arak(Iran) - Iralco relined several pots in the 120 ktpy Arak smelter to bring it into production. Some older pots have been brought down for repairs though no potlines are to be shut down.(LMA) The contract to build a large-scale aluminium smelter in Arak has been awarded to China Non-ferrous Metal Industry's Foreign Engineering & Construction Company (NFC). The contract is valued at about $200 mn and calls for the construction of a 110 ktpy smelter. Originally, the plant was to be located near Iralco's existing 120 ktpy smelter in Arak. Iralco plans to move it away from the residential areas. NFC will provide its own technology for the smelter. Construction will take three years. Iralco's existing plant in Arak will be decommissioned and replaced with a new facility, equipped with modern technology. (Iran Expert) Iran started reconstruction works on the Arak Aluminium.(The Tehran Times 04/21/02)
Al-Ghadir (Kermanshah Province, Iran) - Iran starts work on a new aluminium production complex with majority state company backed $50m to finance project . Final output capacity expected at 100 kty with 22.5 kty after its initial phase. No timetable has been declared. (Reuters)
Bandar Abbas - Al-Mahdi(Iran) - Italy's Fata Group has started work on a contract to expand Iralco's Al-Mahdi aluminium smelter to 110 ktpy. Iralco plans to further expand the Al- Mahdi smelter to 330 ktpy at a later stage. (Iran Expert). Iran plans to reach 60 kt of aluminium production in 2002. The government negotiates with Germany to increase capacity to 110 ktpy.(the Tehran Times 04/21/02)
Iran to build new aluminium smelters - New tenders for aluminium smelters throughout Iran are expected in 2002. The expansion drive is part of a larger programme to raise production to 1 million t/y by 2009 from the current level of 138 ktpy. (Iran Expert)
Iran to build alumina plant in Azerbaijan - Iran Aluminium company plans to establish a unit with the capacity of 200,000 tons of alumina in Sarab of East Azarbaijan province. (IRNA- 04/20/02)
Iran to build new alumina plant - Iran Aluminium is to establish a one-million-ton alumina plant in in southern Iran. (IRNA - 04/20/02)

Upcoming Projects in Chronological Order

Projects are listed chronologically (and in order by country under each year). The subheadings are an indication of our opinion of the projects' beginning date. Underlined text in the following sections highlights our own projections, which may disagree with other published data.

2003:

Aluar (Argentina) - Expansion by 72ktpy (2nd half of line 3) to be completed around 2003. To be followed by a further expansion or Patagonian greenfield. (EnalPanel) Plans for a possible 115ktpy expansion are more advanced than Aluar's plans for a greenfield project in Patagonia. (Platt'sMtlWk)
Sao Luis (Brazil) - Expansion of 115 ktpy over 2003-2004. Probability of 120ktpy (1 line) expansion is high before 2004. (EnalPanel)
Alma (Canada) - Potential capacity to increase by an extra 133 ktpy of production. It is anticipated that it will take two years from the decision date to bring this into realization. (LMA) Alcan's 400ktpy Alma smelter in Quebec is expecting expansion, possibly by up to 135 ktpy. (Reuters - 04/26/02)
Baie Comeau (Canada) - Expansion of 115 ktpy over 2003-2005 with shutdown of Söderberg capacity in 2003-2005. We expect this expansion after the current modernization and environmental upgrading of the plant. Alcoa as the new owner has decided not to convert to prebake the existing VSS line but to modernize the VSS pots along the technological solution of Lista's line 3 (magnetic optimization, point feeders, dry paste). The decision also applies to Pocos de Caldas smelter in Brazil. (EnalPanel)
Aba (China) - Aba Aluminium expects to complete its sale agreement to a US investment company Xie He Group in May. With funds from the sale, Aba aims to upgrade and expand its capacity from 14 ktpy to 16ktpy in three months. The plant intends to start expanding capacity further to 60ktpy by end-2003, with a final goal to reach 150ktpy. (Platts - 04/02/02)
Baiyin (China) - 45 ktpy expansion to 100 ktpy around 2003. Baiyin expects to spend $36.2 million on the expansion. (Platt'sMtlWk)
Baotou (China) - Shutdown of 30 ktpy line. Baotou plans to scrap one line by 2003 to meet environmental rules. (Platt'sMtlWk)
Pingguo (China) Pingguo Aluminium has declared the start of construction at Guangxi. The annual capacity upon completion possibly in 2003 is anticipated at 800-900 kt. The plant is expected to cost 1.89 yuan ($228.3m). (Reuters) However, reported by a Panelist the completion date is predicted to occur more likely in 2004, not 2003. The investment cost of $228m is unrealistic as even the Chinese cannot do it below $2500 per tpy capacity. $200m ($2500 x 800 kt) is more likely. Pingguo's current alumina refining capacity of 400 ktpy is expected to double by 2003. Capacity at the adjacent 135 ktpy aluminum smelter will rise by 220 ktpy to 355 ktpy by 2006.(Reuters) We expect implementation to begin in 2003. (EnalPanel)
Pingyin (China) - 70 ktpy expansion over 2003-2004. Pingyin had planned to expand smelter capacity to 100ktpy, but financing is uncertain. Work is unlikely to start before 2001. (Platt'sMtlWk)
Xianning (China) - Complete shutdown in 2003.
Dubal to expand capacities (Dubai) - Dubai is considering a new expansion to increase production capacity by another 150 ktpy. The proposal is independent of the 530 ktpy planned for several years. Approval for it is expected in 2002. (Gulf News Online). Expansions in low cost producing regions (Middle East, Southern Africa) are logical in a context of an LME price trend downwards. (EnalPanel)
Renukoot (India) - 105 ktpy expansion in 2001-2003 (Lines 9-11). Privately owned Hindalco's $411m investment for the 100ktpy expansion to 350 ktpy alongisde a 210 ktpy expansion of alumina to 660 ktpy will be commissioned in phases and is expected to be completed within 36 months. Capital costs will be internally funded. The expansion includes three potlines with a total of 570 pots with the addition of 65kA PFPB line (no. 9) using their own technology. VAW's technology was not chosen due to internal reasons rather than preference over VAW's technology. (EnalPanel, MetalBulletin) ABB has won the contract for the rectifier systems for Renukoot's lines 9, 10, and 11. (Tribune India) VAW's technology was more expensive than Hindalco's technology both in investment and in operation cost. (EnalPanel) Potline 9 with a capacity of 33 ktpy was commissioned at the end of 2001. (EnalPanel)
Podgorica (Montenegro) - KAP or Aluminium Plant Podgorica, Montenegro, has recently signed a debt restructuring agreement with its creditors. Funds have been made available for a refurbishment of the facility. After the completion of the refurbishment, the alumina production is expected to be increased to 250 ktpy and the aluminum production to 110 ktpy. (EnalPanel)
Karmoy (Norway) - We project a 165 ktpy expansion (Péchiney AP21) over 2003-2005 (probably with an integrated carbon plant.) Probability of an expansion using Pechiney, 210 kA, 165ktpy is high before 2009 because power is still cheap (Scandinavian exchange of power), space is still available, and the infrastructure is there. (EnalPanel) First of all there is a project under way to increase the current intensity of the existing AP18 pots to 210 kA over the next few years (up to the end of 2002) before starting a new project. (EnalPanel)
Slovalco (Slovakia) - 34 ktpy expansion between 2002 - 2004. The intention of a 33% increase in potroom capacity with 54 new cells is expected. The $80m expansion was approved. Financing has been secured by the owners from EBRD and German banks in Slovakia in September 2001. Expansion work has already started. (EnalPanel) The new HAP250 technology will be used for the expansion and the current intensity of the existing pots will be increased from 230 kA to 250 kA at the same time, so that at the start up of the expansion all pots will be operated with a current intensity of 250 kA. (EnalPanel) Slovalco decided to expand production capacity, based on Hydro's pot room technology HAL230. The expansion, fully financed by Slovalco, is expected to add 37 ktpy and will cost approximately US$80 million. The company expects in time to increase the overall production volume of primary aluminium from 109 ktpy to 155 ktpy in 2004. (www.aluplanet.com)
Baise Yinhai (China) - A new company, Baise Yinhai appeared on the scene last year when it announced plans to build a new 50 ktpy aluminum smelter. The company is aiming to boost production capacity by a further 50 ktpy by the end of 2003. The new smelter will be equipped with pre-bake technology . (www.aluminium.org)
Shenhuo (China) - Gas/Coal Power Group in Henan province plans to start building a 140ktpy aluminum smelter in June. The project should be completed by June 2003. A new power plant will also be build. The total investment is estimated at Yuan 3 bn ($362 mn). (Platts - 04/03/02)
Baiyin (China) - Baiyin Aluminium Smelter is expected to reach output of 130ktpy from the present 72ktpy by June 2003. (Reuters - 04/12/02)
Lanzhou-Liancheng (China) - Lanzhou-Liangchen Aluminium Plant in Gansu province expects to double its capacity from 100ktpy to 200ktpy by end-2002. The total planned capacity of 300ktpy should be reached by mid-2003. (Platts - 04/22/02)

2004:

UDC signs deal with JGC and Ferrostaal for 500 ktpy smelter - Qatar's United Development Co (UDC) has entered a joint ventures Ferrostaal and Japan's JGC Corp for the development and implementation of a 500 ktpy greenfield aluminium smelter project. The project will be the first major gas-based industrial venture owned by the private sector in Qatar. Set up in 1999, UDC is the largest private sector shareholding company in the Gulf state. Initial authorised capital: 500 million Qatari riyal. Part of the MAN Group, Ferrostaal is a general contractor for industrial projects in the metals and petrochemical industries. JGC Corp. has extensive interests in the engineering, procurement and construction sector. (Gulf News Online)
Sydney (Australia) - Tomago expansion of 235 ktpy (if AP30 is used) or 150 ktpy (if AP20 is used) over 2003-2005. There is a planned upgrade of the smelter to increase line current up to 225 kA giving an additional 56 ktpy of aluminium capacity at a cost of $50m. An expansion by adding a fourth potline can then be envisaged. (EnalPanel) The fourth potline at Tomago will not be started before 2002. It would take more than 2 years to bring it into full operation; therefore early 2004 is more realistic. (EnalPanel) Pechiney said its Tomago Aluminium joint venture in Australia is to increase its capacity to 530ktpy of aluminium from its current 460ktpy between 2004 and 2006. (AFX - 04/29/02)
Alba (Bahrain) - The 250 ktpy expansion to come online in 2003-2005. The technical study was conducted by Kaiser Engineers. Construction should take 30 months economy. (EnalPanel) Alba project was approved by the board of directors in September 2001. (EnalPanel) Alba has invited four major firms to bid for a $1.7 billion expansion project that will raise the smelter's capacity by 50 per cent. Work is expected to start late in 2002 and would take 33 months. When the expansion is completed, the smelter's output capacity will increase to 750 ktpy. (The Voice of Bahrain) Alba would tap markets for a $1.53 billion bank loan in the second half of 2002 to help finance a planned expansion. (Reuters - 04/11/02) Alba signed a cooperation agreement with Alcoa This agreement provides for the evaluation of adding an additional capacity of 255 ktpy bringing the total capacity of the smelter to more than one million tonnes a year. The first metal is scheduled to be poured in late 2004 or early 2005. (Reuters - 05/22/02)
Tierra del Fuego (Argentina, Chile) - Pechiney includes this region in its location search for a new 460 ktpy smelter. Pechiney the AP20 technology. The proposed new smelter, with costs of $1.6b, may also be a test site for AP50 technology that is suppose to reduce capital costs by 15%.Main reason: cheap, long-term energy available. Alternatives: Australia, Canada, South Africa and the Persian Gulf. Decision: late 2001 and constructionat earliest in 2004. (Business News Americas) (EnalPanel)
Danjiang (China) - A Panelist reports that the facility has 188 HSS pots at 60kA and VAW's 100 prebaked pots at 115 kA. It appears very unlikely that they will add anything but new prebake pots instead of HSS pots. Modernisation will therefore be the conversion of or to stop of HSS pots. That will take at least 30 months and it will not start before 2002, therefore 2004 is realistic for the new pot capacity (see VAW's internal guess) . (EnalPanel )
Nag Hammadi (Egypt) - Revamping of Söderberg lines to increase capacity by 64 ktpy will not be completed until 2004. Following will be a 7th line of 55 ktpy. The seventh line will be built after all Söderberg pots are converted to prebake or it will be cancelled. (EnalPanel)
450-500 ktpy Pechiney greenfield smelter - Using its own AP50 technology, the $1.5-1.7b smelter would be owned by Pechiney and a strategic partner. Decision of a feasibility study should be complete by the end of 2002. Operation of the smelter is not expected until 2004. Possible sites: Australia, Canada, Latin America, and the Persian Gulf. (Platt'sMtlWk) Possible sites have been changed to Australia, South Africa, and Argentina (Metal Bulletin/EnalPanel)
Becancour (Canada) - An expansion of existing lines by 40 pots each (total 60ktpy) in 2004-2005 with addition of 4th potline (140 ktpy) over 2006-2008 was expected. (EnalPanel) The ownership issues between Alcoa/Reynolds and Pechiney had been resolved with the major stumbling block in the past being agreeing to a suitable rate for power with Hydro Quebec. (MetalBulletin, Platt'sMtlWk) However, it is believed by a panelist that a fourth potline will not be added as Alcoa with a capacity of primary aluminium of more than 4m tpy will more than likely invest its money in other projects (EnalPanel)
Port Alberni (Canada) - 360ktpy greenfield over 2004-2005. KAI Technology and Development (KTD) has signed an agreement to perform a pre-feasibility study for the Alberni-Clayoquot Regional District in British Columbia, Canada. KTD has said that BC Hydro would supply the smelter with all of its power, which would consume an estimated 600MW of power. The project will cost about $1.5 billion, and does not yet have investors. Production could begin in three to five years. (Platt'sMtlWk)
Baoding (China) - 50ktpy expansion over 2004-2005. Baoding, with a capacity of 7ktpy, has upped the scale of its expansion to 50ktpy from an original 30ktpy. (Platt'sMtlWk)
Guizhou (China) - 100 ktpy expansion over 2004-2005.
Shanxi (China) - 240 ktpy spread over 2004-2007. The Chalco/Alcan joint venture to build a new smelter in the Shanxi province has been renewed. They will split ownership of the smelter 50:50 and the total investment required will be about $1.2bn. The aluminium smelter will be built by 2005. It will will have an electrolysis capacity of 280 ktpy using 300kA prebake tanks.(Asia Pulse)
Grundartangi (Iceland) - A further expansion to double capacity of 360 ktpy from 180ktpy has been decided. Previously it was suggested that delays in expanding power availability (not depending on Hydro's project) would hinder completion(EnalPanel)
Korba (India) - Conversion to VSSPF in 2003-2004 adding 15ktpy. The company has no detailed plans on automation of alumina feeding and awaits privatization. Partial privitisation (51%) has become a reality. Sterlite will await Techmo's success at their Malco's subsidiary to be carried out in 2002. Automation will take 24 months. Therefore, 2004 rather than 2003 is more realistic . (EnalPanel) Modernization of the existing VSS smelter of Russian design and building a 120 ktpy (Balco) prebake line is also planned. (EnalPanel)
Mosjøen (Norway) - Boosting capacity of Mosjøen and Lista smelters planned by Elkem investment. The brownfield expansion from Elkem Aluminum will occur through an equally shared joint venture with Alcoa. The expansion smelter is planned to increase capacity to 180ktpy (with the conversion). Expansion and changeover will take about 2.5 years. (EnalPanel) An addition of 105 ktpy, a near 50% increase, will be part of the expansion that is estimated at US $225m that is not expected to hinder current production. Preliminary studies began for the 33 ktpy expansion at Mosjøen. (EnalPanel) Elkem has decided to stop conversion of VSS pots to prebake pots in Mosjoeen . (EnalPanel) The conversion of the potroom 3 and 4 to prebake will not take place because of the success of the modernization of the VSS lines at Lista. (EnalPanel) The project was approved in 2001 and the conversion is underway since the second half of 2001. (EnalPanel)
Oman (Oman) - Oman plans to revive investment talks on a proposed $2.5 bn aluminium smelter in the Sohar zone. The project had had expected to be finalised before the end of 2000, but has been hampered by a lack of commitment from investors outside the UAE. A feasibility study for the 530 ktpy smelter was completed in January 2000 and the set up was planned for 2005 in partnership with the governments of Abu Dhabi and Dubai in the United Arab Emirates, as well as international investors. Austria would provide technical support. (Reuters) A number of planned heavy industries is now being fast-tracked for development in Oman. The Oman authorities are looking at three possible power supply options to serve the Sohar industrial zone. (www.tradearabia.com)
St. Petersburg (Russia) -Alutech is waiting approval by the St Petersburg regional government for construction of a 220 ktpy smelter. The proximity of the St Petersburg nuclear power plant and the seaport under construction at Ust-Luga are major criteria involved in the decision. An investment of $800m for three years by Alutech will involve a possible $700m loan from the World Bank for the project.. Vsevolozhsk will have to import raw materials thus making it possibly noncompetitive. The St Petersburg regional government is reportedly in negotiations with several US companies for the construction of a greenfield smelter in the region. (Platt'sMtlWk) A feasibility study was expected to begin in July. The project would use excess capacity at the Sosnovy Bor nuclear power station. Fluor (not Kaiser Engineering nor Hatch) is said to be involved, although it is not known to what extent. (MetalBulletin, EnalPanel) Alexander Sadabash, a Russian businessman, is promoting the construction of a 150 ktpy smelter alongside the 220 ktpy project . He intends for the site of the smelter to be at Vsevolozhsk, in the outskirts of St Petersburg. A 150 ktpy capacity would idle facilities at Russky Diesel plant. (Platts) Northwestern Aluminum (Aluminy Severo-Zapada) group's smelter project of a consolidation of Pikalevo Alumina Refinery, Volkhov Aluminum Plant smelter, and Volgograd Aluminum Works faces uncertainty. Separate smelters of 100-200ktpy are under consideration with one in Vsevolzhsk and the other in Tikhin, both in the St Petersburg region. A smelter would be built by a holding company composed of Volkhov Aluminum and Glinozyom, an alumina producer from Pikalevo, at the Transmash engineering works. There is no detailed plan known yet. (Interfax) Russian have too many greenfield projects that could not come to life as the market wouldn't absorb it. (Enal)
Caracas (Venezuela) - Corporación Aluminios de Venezuela is to increase capacity to 845 ktpy from 590 ktpy (Alcasa, 215 ktpy; Venalum 630 ktpy (El Nacional). (EnalPanel) Four new investment projects worth $892m involving Alcasa and Bauxilum were presented to investors. According to a panelist, Pechiney proposes to replace the two shutdown lines with a new 400ktpy line using AP50 technology. Also included is a fifth potline with 180 ktpy requiring $500m, a plant to reduce bauxite humidity and one to treat red mud for $200m, and $30m to modernize Alcasa's rolling mill. (MetalBulletin, EnalPanel) CVG operates with Investment Fund FIV to attract foreign investments downstream. Pechiney might invest over $2b in Venezuela over 7-8 years. A new CVG Carbonorca project, a 250 ktpy carbon anode plant, will be proposed to private investments. (LMA) Pechiney signed a contract with Bauxilum to reconstruct its alumina plant to reach two million tons production in five years . (AFX - 04/30/02)
Sunndalsora(Norway) - Startup of 234 ktpy expansion using Hydro's technology in 2004-2005, with a shutdown of obsolete Söderberg capacity. The expansion project has been started. During the construction period, two old Söderberg lines with a capacity of 66 ktpy will be shut down.. The total capacity of the smelter after the expansion will be 321ktpy, making it the largest smelter in Europe. with expected completion in 2004 (EnalPanel) The capital cost of the project is estimated at $800 million. (EnalPanel) Another panelist puts the capital cost for the project at US$600 million, but possibly for the construction of the new line alone. (EnalPanel) A Panelist reports the project entails utilizing Hydro's own HAL250 reduction technology. The potline will be equipped with 336 pots and operate with a line amperage of 250kA. The alumina will be supplied by Alunorte in Brazil where Hydro has acquired a 25.3% ownership. (EnalPanel) The new electricity contract will last until 2020.(EnalPanel) An additional investment of approximately US$66.7m will be required for a new anode capacity. Included is the option to build a new anode plant and reconstruct the building site. AF Gruppen ASA signs letter of intent for the modernisation and expansion of Hydro Aluminium Sunndal for NOK 5.6b investment topping it as the largest European smelter. Expansion should be complete by 2004. (EnalPanel)
St-Jean-de-Maurienne (France) - The new AP50 technology was offered in July 2000 to prospective partners in joint venture projects. Three prototype pots using 500kA amperage cells at the Pechiney smelter were developed over the last decade. Expectation of using the technology in 2001 would foresee the first plants in 2004. The AP50 expected to save 10% costs with exclusion of alumina cost has a capital investment limited to $3,400 per tonne of aluminum. This is a saving of 15%, or $600 per tonne in comparison to the AP30. A $1,100 per tonne savings compared to an AP18 project. Reduction of construction time from 30 months to 24 months of a single potline is also reported, although an increase in amperage bears two crucial dilemmas; magnetic compensation and dissipation of pot-generated heat. (LMA)
Mozal (Mozambique) - MOZAL is pushing ahead with plans to double its capacity to 500 ktpy. Commissioning of MOZAL-2 is scheduled for late 2003, with full production expected in 2004. (Xinhua)

Hillside III - An extension of 130 ktpy to the BHP's Hillside smelters at Richards Bay with the new plant to be known as Hillside III. The project will start in 2002 and the production will begin in 2004. (Business Day/All Africa/BHP) The project will add a further 132 ktpy or 25% of the present primary aluminium capacity to the smelter. Construction costs are estimated at US$449 million . The work will commence in April 2002 and commissioning is scheduled for April 2004, with full production expected in mid 2004. (BHP Billiton)
CBA (Brazil) - Companhia Brasileira de Aluminio (CBA), is proceeding with construction of 100 ktpy of new capacity. This will bring 288 new pots on stream - 72 in September and the rest during the remainder of 2002 and throughout 2003. Full production at the
new annual capacity rate of 340 ktpy will be reached in 2004.(Reuters)
Jiaozou (China) - Jiaozuo Wanfang Aluminium in central Henan province obtained approval to expand its capacity from the present 110 ktpy to 180ktpy by end 2002. The further expansion to 300 ktpy is expected by 2004. (Reuters - 04/12/02)

2005:

Arvida (Canada) - Horizontal Söderberg lines to shutdown (now 15 ktpy) to zero when the Alma smelter (AP30) starts in 2001-2002 as part of Alcan's replacement of Söderbergs by new capacity. Prebake lines (150 ktpy) are to be revamped only if the Alma smelter is not expanded from 1½ to 2 AP30 lines, which will not be before 2005. (EnalPanel)
Boyne Island (Australia) - Expansion using AP30 technology in 2005-2006. A brownfield expansion of 160ktpy using AP30 is being studied. (EnalPanel)
Kurri Kurri (Australia) - VAW is considering the expansion of its 150 ktpy facility to above 165 ktpy with investments of A$100m ($50m.) Depending on power availability VAW intends to increase the capacity by another 100 ktpy (MetalBulletin) Norsk Hydro after the merger with VAW agrees with the current modernization of the existing lines by VAW but objects to the new brownfield project using VAW technology. Therefore adding 100 ktpy to 2005 is not realistic. (EnalPanel)
Valesul (Brazil) - Expansion to 229ktpy in 2005. Valesul is in the early stage of studying a possible expansion to 229 ktpy. Before such a project is possible, a power supply must be found. Construction of the Machadinho hydropower plant, of which Valesul has a 7% share, is on target for start-up in 2002. (Platt'sMtlWk)
Alma (Canada) - Possible expansion of 133ktpy (half a line) 2005 or later.
Alouette - Sept-Iles (Canada) - Possible expansion from 2005-2008. Aluminerie Alouette is to decide about doubling its production to 484 ktpy pending decision by co-owners Corus, Marubeni, Kobe, VAW, and Austria Metal. The feasibility study completion is expected for the C$1b ($641m) expansion that would provide jobs for 300 workers. Completion of construction will be two-and-a-half years. Aluminerie's production began in 1992 with 560 workers. Each potline consists of 264 cells each producing 2.5 tpd of aluminum. (MetalBulletin) There is only one potline consisting of 2 potrooms housing 132 pots. (EnalPanel) Norsk Hydro reconsiders all projects by VAW after the merger which means a delay of 10-15 months even if the other partners would agree. (EnalPanel) Alcan will decide this year whether to double 243 ktpy Alouette smelter in Quebec. (Reuters -04/26/02)
Kitimat (Canada) - Either a 250 ktpy expansion or greenfield nearby in 2005-2007. AMM reported that Alcan is still considering a brownfield expansion (of 100 to 250 ktpy, depending on market demand) at Kitimat but is in no hurry. A decision would be made in 2003 or 2004 and the project would have a two-year time period to start-up. (AMM) Bechtel has been awarded a feasibility contract for this project. (EnalPanel)
Guanlu (China) - 150 ktpy expansion possible by 2005-2007. Local reports say that by 2005 the smelter should be expanded to 250ktpy. (Platt'sMtlWk)
Zunyi (China) - 70 ktpy expansion to 200ktpy by 2005-06. Zunyi's final goal is to reach a capacity of 200ktpy by 2005. (Platt'sMtlWk)
Auzat (France) - Complete shutdown in 2005. Pechiney has decided to shut down the smelter in 2005. (AlVerlag)
Distomon - St Nicolas (Greece) - Power plant in 2005-2007. Discussions between Aluminium de Greece, National Power and DEPA are at a very early stage. National Power is conducting a pre-feasibility study . The power plant project is intended to substitute the present state owned suppliers (half hydro and half coal) and not to expand the production. (EnalPanel)
Kandalaksha (Russia) - Modest revamping of 70 ktpy with capacity increase of 15 ktpy starting in 2005 while keeping the Söderberg technology with a Russian technology modernization. (EnalPanel)
Sayanogorsk (Russia) - Planned expansion of 104ktpy (line 5) in 2004-2006. Another expansion of 104ktpy (line 6) in 2007-2009. Sibirsky's integration into Russian Aluminium will help to finance the planned expansion by one line of 255kA pots. Although, Sayanogorsk is now fully integrated into Russky Aluminium, financing of the expansion is still not finalized. Projects for alumina (Ganja, AZ, Nikolaev, Ukraine) take precedence. Rusal wants to realize the expansion of the Sayanogorsk smelter and the expansion of the Nikolaev at the same time. Zaporoskye and Ganja are not on their priority list (EnalPanel)
Volgograd (Russia) - Complete revamping with conversion from Söderberg to prebake and capacity increase of 45 ktpy over 2005-2007. Financing of conversion of 2 shutdown VSS lines to modern prebake potlines has not been successful and does not look promising. The Volgograd conversion to prebake technology must to clear the following hurdles: privitization, possibly some time in 2002; power price negotiations, in 2002-03 or thereafter; completion of a bankable feasibility study, likely to take a year; conversion to prebake technology; modernisation of VSS pots to VSPF, likely to take four years (such as in Bratsk). The 45 ktpy increase is likely to occur in 2006-07. (EnalPanel)
Trinidad and Tobago - 237 ktpy project over 2005-2006. 237 ktpy expansion after 2008. As of November 1999, a decision on a proposed greenfield smelter in Trinidad and Tobago was at least two years away. Construction would take about three years from the time a decision was made to build it. (Platt'sMtlWk)
Sebree (USA) - 60 ktpy expansion in 2005-2006. An expansion using PFPB Alcoa 205kA (Alumar tech.), 140 pots, 75ktpy is highly probable before 2009 because power deregulation will provide a better power price. New technology would require an investment of less than $2,500/tpy. (EnalPanel) Alcan continues to study the possibility of a fourth line (60ktpy), but it is not a priority at the moment. (Platt'sMtlWk)
Slatina (Romania) - Revamping of four lines (210ktpy) over 2000-2005. (EnalPanel)
Lam Dong ( Vietnam) - Vietnam will start building an alumina refinery and aluminum smelter at the end of 2002. The complex will have a capacity to produce 300 ktpy of alumina and 72 ktpy of aluminum. The production is expected to start in 2004-2005 The government will invest US$750 mn . (Platts)

Balco (India ) - Balco will build a brownfield smelter AP 18 technology and a capacity of 230 to 330 ktpy at Korba. Sterlite the owner of Balco and Malco got the licence from the Orissa government. The plant is to be finished in 2005. Our panelist think that this is another indication that they agreed to let Birla/Hindalco buy control of Nalco in the near future. (EnalPanel) Sterlite Industries plans to raise money abroad to fund expansion of Balco. They plan to increase Balco's capacity to 300ktpy-400 ktpy by 2005 from 100 ktpy which will help it catch up with India's number one and number two companies, private-sector Hindalco and state-run National Aluminium Company (NALU) respectively. (Reuters) BALCO's board had approved plans to raise aluminium and alumina capacity. It plans to expand annual aluminium capacity to 334 kt from 100 kt and annual alumina capacity to 830 kt from 180 kt. The company also plans to raise the capacity of its own power unit to 810 at an expected The cost of of the project is expected to be 50 billion rupees ($1.02mn). The time frame has not been given. (Reuters -05/14/02)
Yimei (China) - Yimei Group, a gas major in Henan province,plans to start construction of an estimated Yuan 380 mn ($45.9 mn) investment into 100,000mt/year alumina refinery which is to be completed by end of 2005. (Platts - 04/10/02)

2006:

Bell Bay (Australia) - Expansion of 170 ktpy over 2006-2008. Comalco in cooperation with Dubal is developing a 260kA pot at Bluff (NZ) and intends to install one line 180-210ktpy in Bell Bay, adding capacity or partially replacing present obsolete Kaiser pots. (EnalPanel) One of our panelists considers an expansion of 170 ktpy unlikely due to energy problems. (EnalPanel)
Belem (Brazil) - Expansion of 175-180 ktpy over 2006-2008. An expansion may attract new partners in the joint venture. (AMM) The joint venture (CVRD-Nippon Amazon Aluminium Co) smelter of Belem has declared plans to increase its capacity of 43 ktpy to 403 ktpy by June 2001 through a $90m investment. Expansion will entail installing 96 new pots. Depending on the renewal of the company's energy contact with Electronorte, there is also consideration for total expansion to approach 580 ktpy. (LMA)
CBA (Brazil) -A 70 ktpy new capacity at Votorantim Group's Cia Brasileira de Alumino (CBA) once brought on stream should boost capacity to 307 ktpy. (MetalBulletin) CBA implemented $400m investment program to increase the capacity of production by 70 ktpy to an estimated 310 ktpy in 2002. CBA was reported to have reached its full primary aluminum capacity of 240 ktpy in 2000. (LMA)
Shawinigan Falls (Canada) - Complete shutdown in 2006.
Baotou (China) - 50 ktpy expansion over 2006-2007. The line currently under construction was originally intended to be a 100ktpy line. We anticipate that they will expand capacity by another 50ktpy, just not all at once.
Qinghai (China) - 100 ktpy expansion after 2006.
Eastern Iceland - ISAL, owned by Alcan, plans to build a new smelter in the east of Iceland. Construction is set to start in 2003 and the 240 ktpy. The plant could be operating fully in 2006. (Reuters)
Hydro Iceland (Iceland) - 240 ktpy greenfield in 2006-2007. Possible eventual expansion to 480ktpy. Norsk Hydro had inked an understanding with Icelandic backers of an aluminum smelter/electric power project near Reydarfjordur involving a facility with eventual capacity of 360ktpy to 480ktpy. Construction of the smelter would start in 2003 with a view to first production in 2006. (AMM, Platt'sMtlWk). According to press reports in Iceland, Norsk Hydro has informed the Icelandic government that it wants to postpone the construction of a huge aluminium smelter capable of processing 420ktpy. The postponement would probably affect plans by the Icelandic government to build the 700 MW Karahnukar Hydro Power Plant, which would be used to provide energy to the smelter. (WWF Global Network) Norsk Hydro announced to indefinitely postpone decision to move forward with the Iceland project, because it is investing NOK 20 billion in the VAW acquisition and therefore must reconsider other possible investment projects. The most likely candidates would be Alcoa, Alcan and Pechiney. (Aftenposten - 03/28/02) After Hydro postponed its decision for end of 2003 the Iceland's government is planning to look out for new investors to help build a 280ktpy aluminium smelter in eastern Iceland. (Reuters - 04/03/02)
Madras (India) - Expansion of 120 ktpy over 2005-2006 using Pechiney AP21. This project will not be an expansion of the existing smelter. It will be more or less a greenfield smelter. Sterlite is in the process of integrating Malco in order to help financing the expansion (AP21 instead of AP30). The AP30 project is still pending and will not lead to an expansion before 2005. However, it is predicted by a panelist that it will be very unlikely that Sterlite will have enough money and power for an expansion using Pechiney technology. (EnalPanel) With five years including the time for bankable feasibility, time for financing and realisation of the actual construction of the smelter it is likely to be 2006. The corresponding time at Hindalco for the brownfield expansion of Renukoot was five years . (EnalPanel)
Orissa Hindalco (India) - 150 ktpy in 2006-2008. - Hindalco's growth plans for the next five years include plans to increase the scope of the Aditya Aluminium project to a 300ktpy smelter with a captive power plant. (MetalBulletin) The Aditya Aluminum Project will be reopened for consideration in 2001. (EnalPanel)
Beira (Mozambique) - 240 ktpy greenfield in 2006 - 2009. The feasibility study was said to be finished in the second half of 2000. (EnalPanel) Kaiser Aluminum has withdrawn as a technology supplier in general, not only for smelters. Fluor Daniel is looking for another supplier of smelter technology. (EnalPanel)
Bratsk Irkutsk (Russia) - Possible 300 ktpy greenfield in Taishet around 2006. Russky Aluminy had decided in early 2000 not to build the new smelter in the Irkutsk region promised by the former owners of BrAZ, instead was the decision to concentrate on improving productivity at existing smelters. (Platt'sMtlWk) . The commission has considered several sites, but seems to have focused on Taishet, near Bratsk. The construction of a new aluminum plant in Tayshet (Irkutsk region) started. The cost of construction is estimated at USD 300 mn. The first stage with 62 ktpy capacity will be commissioned in 2003. Full capacity of 250 ktpy will be reached in 2006. (Gorodissky)
Vietnam (Vietnam) - Greenfield could start up in 2006-2007, but still very uncertain. Vimico still plans to build a 100ktpy smelter at an estimated cost of $600 million, with a start up scheduled for 2005. The smelter would be owned entirely by Vietnam, with overseas technology. Pechiney and Vietnam National Mineral Corp. are still awaiting approval for their joint venture alumina project. Ownership will most likely be Pechiney 70%, Vimico 30%. (MetalBulletin) A panelist involved with this project for the past two and a half year reports that the time for completion from bankable feasibility study to startup had been estimated to take six years as the alumina refinery had to be completed first (likely to occur in 2006-07). The startup of the smelter is likely to occur beyond 2007 . (EnalPanel)
Angul (India) - After doubling its Damanjodi capacities Nalco has also sought government approval to enhance the annual capacity of its aluminium smelter at Angul, also in Orissa, to 460 ktpy by 2006.(Times of India)

2007:

Aima (Malaysia) - 240 ktpy greenfield in 2007. Situation in Malaysia is unclear since AIMA's principals decided to sell the ex-Bintulu/Terrenganu project they had floated since 1988 with various successive potential partners. Most probable is that renewed interest in a greenfield is now backed by Chinese investors using Shenyang-Guiyang technology. (EnalPanel)
Aysen Region (Chile) - The scheme in Chile involves the construction of an aluminium smelter with a capacity of 440 ktpy, as well as three hydroelectric dams with a combined generating capacity of 1,154 MW, of which 758 MW would be required by the plant. The facility would need 80 km in electricity transmission lines and the construction or rehabilitation of 80 km of roads suitable for heavy vehicles. Inputs -- mainly alumina and coking coal -- and final production would be shipped in and out via a purpose-built port near Puerto Chacabuco, 1,500 km south of the capital, Santiago. (ViewsWire Latin America) . The sea terminal will be built to handle 45,000 tonne ships, with up to 12.8 metre draft. These facilities will be designed to handle up to 110 ships per year, in other words, about 9 vessels per month. (www.intrafish.com - 04/11/02) The water and smelter rights are under Noranda, thereby ensuring enough power supply to the plant. The project worth $2.6-2.7bn is expected to gain approval in 12-18 months in which Noranda will subsequently seek interested participants not restricted to the aluminum business. So far, $34m has been spent on the project. (NorandaNews, Platts) Chilean environmentalists and fishermen are raising objections to the project. The company proposes to create 8,000 temporary jobs over the five-year construction period and 1,100 jobs during the plant's 50-year operational life.(Reuters) The project will not be realized in the next five years because the dam and the power station will need at least six years. Therefore the completion date would be 2007. (EnalPanel) Planners of the massive aluminium plant Alumysa are hoping to gain approval by the beginning of 2003. All parties behind the development in southern Chile have until August to respond to all points made against it. Salmon companies are prominent opposers of the development, as it is proposed to lie squarely in a heartland of future salmon production. (www.intrafish.com - 04/11/02)
Patagonia (Argentina) - 250ktpy in 2007-2008. Aluar is looking hard at spending $2 billion to more than double production capacity. Consideration is being given to construction of a new $1.3 billion plant somewhere in Patagonia, plus a new 1,000 MW thermal electricity generator and a $150 million modernization of Puerto Madryn's lamination line (rolling mill?). The new plant's capacity would be about 250ktpy. The new plant's location has not been pinpointed yet and hinges on various factors. It will have to be where there is an abundance of gas, along with hydroelectric resources. A port will have to be nearby or will have to be constructed. (Reuters) Talk in 1999 centered on the Bahia Banca area. (EnalPanel) ) Aluar decided to go ahead with investment plans. To expand its production the company will become partners with Alcoa. Through this investment the production capacity will increase from 270 ktpy to 410 ktpy. (La Nacion/SABI - 04/01/02)
Gansu (China) - Expansion by 15 ktpy (phase two) in 2007-2008. Their final goal is to double capacity to 60ktpy, but they can only look into that after phase one is complete. (Platt'sMtlWk)
Lista (Norway) - Expansion of 40 ktpy in 2007. A 40ktpy expansion is possible if Elkem gets extra energy by adding gas-fired power to existing hydroelectric supply. (MetalBulletin) The government and the majority of the parliament have decided once and for all that natural gas will not be available for power generation despite the report from Metal Bulletin. (EnalPanel)
Umm-Said (Qatar) - 240 ktpy after 2007 (Hydro or other producer). Nalco is looking for a greenfield smelter site in West Asia and is believed to have chosen Qatar. Nalco's own alumina would be used, possibly on a tolling basis. The smelter would most likely have a capacity of 230ktpy. Nalco would need a joint-venture partner, probably someone already in the aluminum industry in the region. (MetalBulletin) Norsk Hydro has expressed interest in a project in Qatar in the past; and Dubal expressed interest in a greenfield project in the Gulf. Both Norsk Hydro and Dubal would be able to bring their own technology to the table. (EnalPanel)

Coega (South Africa) - BHP Billiton took into consideration to build a smelter in the Coega Harbour and Industrial Zone Project.
(Business Day/All Africa) Pechiney launched an environmental impact study for the development of a $1,6bn aluminium smelter with A50 technology at Coega.. There is still no guarantee that the smelter would be built in SA, as a similar assessment had also been launched in the Northern Territories of Australia, while Canada had also been identified by the company as a potential location for the investment. (Business Day - 04/30/02) ESKOM would consider an equity investment in a new aluminium smelter in Coega to help get such a project off the ground as this would establish an important new electricity consumer for the utility. (Business Day- 05/17/02) Pechiney has welcomed a statement by Eskom that the SA utility may become an equity investor in a $1,6bn aluminium smelter at Coega. BHP Billiton might also invest in an aluminium smelter at Coega, and has investigated the possibility, but a decision could be a few years down the line. (Business Day - 05/23/02)

2008:

Arvida (Canada) - Revamping of SWPB pots over 2008-2009.
Asahan - Kuala Tanjung (Indonesia) - We foresee a 150 ktpy expansion over 2008-2009. First of all, the question of energy supply has to be cleared before thinking of nearly doubling the capacity of the smelter. (EnalPanel) Asahan was running at 85% capacity in September 2001 . (Platt'sMtlWk) Inalum claims to have solved its power supply problems and plans to reach 100% capacity during 2001. (MetalBulletin)
Mary (Turkmenistan) - Infrastructure has made it possible to build in Mary Region the first ever a luminium complex in Turkmenistan with a capacity of 240 ktpy in 2004-2008.The complex will include an aluminium smelter, an alunite mining and a processing factory.(BBC)

2009 and later (or still very uncertain):

Angola (Angola) - Uncertain, possible long-term.
Aldoga(Australia) -Will the greenfield smelter in Aldoga, Australia be an AP50, or will it use old, proven technology at lowest costs available? Now that RTZ-Comalco seems serious about developing the Gladstone alumina refinery, and considering the energy resources in the country, the 450ktpy Aldoga greenfield aluminum smelter project makes sense. Their problem will be to keep investment costs low, for which they have two choices: 1) One potline of 450 ktpy using Pechiney's AP50 pot with 312 pots, current intensity 520kA. This would be in theory (remains to be proven) less costly than 2 potlines in AP30. Such a smelter can be built in 3 years after "green light" is given.(EnalPanel) The Aldoga Aluminium Smelter consortia signed a Cooperation Agreement with RusAl. In addion a Technology Option Agreement has been Signed with the Russian National Aluminium and Magnesium Institute. Aldoga now has the technology and management requirements of the project substantially resolved. The Aldoga RusAl announcement signalled a potential for stronger economic ties with Russian industry and could lead to the development of further Russian supported major industries in Gladstone. The Aldoga project will establish the world's most modern greenfield aluminium smelter in Gladstone, Central Queensland. It has received Major Project Status from the Australian Government and is gazetted as a Project of State significance in Queensland. The Smelter represents an investment of AU$3.4 billion, creating 7,000 construction jobs and impacting positively on a potential 20,000 jobs in Australia.(Aldoga sources)
Sumgait (Azerbaijan) - Possible 50 ktpy expansion. The government is considering plans to expand Sumgait production to 110ktpy.
Aratu (Brazil) - Partial shutdown (28 ktpy) in 2009-2010.
Deschambault - Lauralco (Canada) - Expansion of 227 ktpy to double capacity is possible after 2010, possibly earlier.
Quebec (Canada) - Quebec government woos foreign investment. Eight companies, mostly European, are said to be considering the establishment of a presence in Quebec's so-called Aluminum Valley. (MetalBulletin)
Hengyu (China) - Hengyu Aluminium Co. Ltd., a private enterprise, plans to expand its aluminum production capacity to 80ktpy from the current 5 ktpy. The project will require a total investment of $85-97 million. Although the company is "making preparations for" the capacity expansion project, it has yet to settle the details of the plan, including a time frame for the completion of the project. (Dow Jones Newswire)
Dunkerque (France) - For the long-term, we foresee a possible doubling of capacity as European energy prices get more competitive thanks to federal deregulation which is bound to hit EDF at some time. (EnalPanel)
Guinea (Guinea) - 240 ktpy in 2010. We consider Guinea a good site for a greenfield smelter, primarily due to the proximity of the Friguia refinery and of potential hydro-electric generation. (MetalBulletin) The Guinean government approached European companies first for the greenfield refinery project and secondly for the smelter. As the lead time for the smelter and hydro power station is very long, the possible start-up time is probably 2010. (EnalPanel) Construction of smelter and associated hydroelectric plant currently awaiting approval from the Guinean government. With the privatized ownership and operation of the smelter exclusive of the state, the expected capacity is projected at 260 ktpy. The planned expansion of Friguia to 1 million ktpy AI203 does not allow the supply of alumina by ACG as long-term alumina supply contracts for Alucam (200 kt/a) Alscon (400 kt/a) and Russian Aluminium (300 kt/a) are evergreen contracts. Alcoa does everything to stop building anew alumina refinery in Guinea in order to preserve their lucrative bauxite mining at Boké . (EnalPanel)
Inota (Hungary) - The power plant project has been suspended (March 2000). (EnalPanel) Inota consumes approximately 17 500 MW AC per tonne of aluminium. The smelter of 35 ktpy needs about 68 000 kW. In Hungary the investment cost is USD 600 per kW. (EnalPanel)
Atlantal - Keilisnes (Iceland) - A 200 ktpy after 2008 was previously predicted. The first setback were the departure of sponsors: Hoogovens, Granges Aluminium and Alumax. Alcoa discontinued talks with Statskraft SF. It seems that this project is most likely shelved and will be replaced by the Hydro Iceland project (See Hydro) (EnalPanel)
Jharsuguda (India) - The restructuring of Sterlite has killed their project in Orissa. (MetalBulletin)
Jajarm (Iran) - 220 ktpy in 2009 or later. Iran Itok is working on the feasibility study of the 200ktpy Jajarm Aluminium Project, for which a 330-360MW power station will be constructed. The Jajarm Alumina Project will supply the smelter with 280ktpy of alumina. (MetalBulletin, EnalPanel) Although the Jajarm Alumina Project was due to start up in September 1999, design problems were holding back the project. (Reuters) The managing director of Aluminum Company of Iran claimed in early September 2001 that the Jajarm alumina project was 95% complete. (Platt'sMtlWk)
Kuwait (Kuwait) - 120-180 ktpy after 2010. Kuwait Industries and Raytheon apparently have both competed for this project.
Nigeria - New smelter being considered by the federal government. Expected will be the private sector's full involvement. The smelter is estimated to cost N200b. A memorandum of understanding was signed by the federal government with Ferrostal (Germany) to provide $150m for the plant's completion. $26m is the foreign equity contribution for completion. The plant is expected to reach completion by 2006 through funds generated from production and sales rather than loans and a commitment by the federal government of no less than $2.5b. (The Guardian) A panelist reports the unlikelihood of a greenfield smelter to occur before 2007 so long as the shut-down at Alscon exists . (EnalPanel)
Novokuznetsk (Russia) - Revamping of 100 ktpy of obsolete capacity. Still uncertain. NkAZ restarted shipments of primary aluminum at the beginning of March. (MetalBulletin) NkAZ was formally declared bankrupt by the Kemerovo regional court, which has put the plant into external management for a year, appointing 28-year old Sergei Chernyshev as head of the smelter. The external management will need to present a proposal for repaying the plant's debts, and if this fails by the end of the twelve-month period, the plant will be sold. (MetalBulletin)
Shelekhovo (Russia) - Expansion of 70 ktpy 2009 or later. The planned expansion of 2 potrooms (1 potline) would involve VSS 160kA. (EnalPanel)
Yanbu Al Bahr (Saudi Arabia) - Saudi Arabia's 180ktpy smelter project may be revived given the current buoyant market conditions, although the government hasn't given any indications of reviving the project, initiated in 1996 by Saudi Basic Industries Corp (Sabic). (MetalBulletin)
San Ciprian (Spain) - 200 ktpy expansion eventually, replacing La Coruna and Aviles. The feasibility study for a brownfield expansion has been put on ice. (EnalPanel) Alcoa has decided to leave La Coruna and Aviles alone except for modernizing them along the technology for line 3 at Lista. (EnalPanel)
La Coruna (Spain) - Complete shutdown in 2010 (upon expansion of San Ciprian) will not take place. (EnalPanel)
Tadaz (Tadjikistan) - Revamping of entire capacity over 2001-2008, enabling plant to produce at full capacity. Tadaz plans to raise production by attracting foreign credit. Funding for the plant will be decided upon after the World Bank. The smelter has been purchasing alumina from Sumgait.. (Platt'sMtlWk) The government of Tajikistan is required by the IMF to completely privatize the TadAZ smelter. Russky Aluminy is considered a likely bidder. (MetalBulletin) The trading group that operates the TadAZ smelter plans to explore "energy resources and developing power projects in the nearby Uzbekistan." (MetalBulletin)
Seydisehir (Turkey) - 60 ktpy revamping with a capacity increase of 40 ktpy. The plan is to both modernize and increase smelter capacity to 100ktpy, for which the company says it can produce sufficient alumina. The modernization includes converting the smelter from Söderberg to prebaked anode technology, and if the plan were approved, construction would probably start next year. (MBM) One of our panelists thinks that a conversion to VSSPF is more likely than a conversion to prebake. (EnalPanel) Although one panelist thinks the revamping of this smelter will never take place (EnalPanel), ENAL thinks the project is very long term and will be combined with a power plant investment.
Ukraine - 240 ktpy greenfield in 2007-2008. The government is in the process of granting an approval to the proposal to site the 130 ktpy smelter in Kharkiv, in proximity to Russian electricity suppliers. (MetalBulletin) The estimated investment cost of US$190 million for a 240ktpy greenfield smelter is unrealistic and financial institutions in the West therefore are not inclined to finance such a project. In the West, the cost of a greenfield smelter of this size would cost about US$1 billion (EnalPanel) Russian Aluminium is not planning such a smelter. Sibirsky Aluminium is not involved in smelters anymore. (EnalPanel) According to Ukrainian Aluminium, a subsidiary of Siberian Aluminium, it plans to invest at least $200 million to build a smelter in Ukraine with a capacity of at least 100ktpy. Construction would begin before 2002, with a construction time of five or six years. (Platt'sMtlWk) Russky Aluminium will take care of primary aluminum production, including all former Sibirsky Aluminium smelters. Sibirsky Aluminium will concentrate on downstream and recycling activities. (EnalPanel)
Abu Dhabi (United Arab Emirates) - One of four most likely greenfields to start up in the Gulf within the next ten years. A $1.5bn project is on the drawing board. UAE Offset Group has secured a bauxite mining concession in Guinea and is in the advanced stage of discussions with Pechiney for the acquisition of technology for a 250ktpy smelter in Abu Dhabi. A feasibility study of the project, which is promoted by General Industry Corp., has been completed by SNC Lavalin. (MetalBulletin) No bauxite mining concession in Guinea except to SBK (Kindia) has been given to any foreign company in 2001. SBK is securely in the hands of Russian Aluminium. (EnalPanel)
Mount Holly (USA) - Possibility of a new line being added using Alcoa technology. Century has completed the purchase of a 23% stake in the Mount Holly smelter for $95 million. Century's stake in the smelter is now 49.67%. (The remainder is owned by Alcoa.) (AMM)
Alcasa (Venezuela) - 200 ktpy expansion (5th line) in 2007-2009. (MetalBulletin) CVG is seeking a $600-mil capital investment to complete potline 5. (Platt'sMtlWk) Pechiney now builds AP21 and AP23 only at 264-288 pots/line. Pechiney's AP50 line could be built on the Ornoco River, but not at Alcasa, for space reasons. Collectively, the AP50 line, bankable study, financing and implementation in Venezuela will likely take longer than six years possibly in 2008. (EnalPanel)
Alisa (Venezuela) - 80-90 ktpy in 2008-2009 (initial phase). The probability of this project is less than 5% because of a bad choice of technology and the small size of the smelter. (EnalPanel)
Caracas (Venezuela) - Pechiney continues with feasibility study. An agreement between Pechiney and CVG is anticipated to ensure delivery of raw materials supplies. The study was conducted to determine required new alumina capacity. The Carbonorca anode plant working at 50%, could provide a source for Pechiney in addition to sufficient electricity generated after completion of a new hydroplant on Caroni river. Total cost of the project is expected to reach $1.6b (MetalBulletin) CVG to invest $11m to restart No 1 and No 2 potlines, maintain operation of lines 3 and 4, construction of 5th line and a new rolling plant at Alcasa. (EnalPanel) Trying to assure additional alumina capacity by 2006 Pechiney will start the construction of the alumina plant in Venezuela by 2003. (The Business Standard)
Pechiney Venezuela - Péchiney has said that it is studying the possibility of building a new aluminum smelter in Venezuela with an annual capacity of 250ktpy. (EnalPanel)

News from the Smelter Equipment Manufacturers

We publish here significant events occurring to manufacturers of primary smelter equipment. You are welcome to send us such information as new products, major sales successes, acquisitions, etc.

Brochot S.A. (France) - French based Brochot S.A., specialists in designing, building and installation of special purpose machines and productions lines, with emphasis on plant for the aluminum smelters and the light metal industry, has built and installed more anode rodding plants and units for sealing the rod with cast iron, than any other firm. The first fully automated carousel type machine (even the cast is fully automated) now operates in Alcan's Alma smelter includes two key innovations: optical thermocouples that help control the casting by indicating the temperature and hot metal level in the holes; an overhead coveying system that brings fresh ladles of cast iron to the casting point while casting is still going on. Advantages of the first ever continous and fully automatic cast iron sealing operation allows avoidance of the usual intermittent operations that occur due to the periodic removal of the ladle for refilling with molten metal. An increase in productivity by 5-10% and simplicfication of the systems' controlling program makes it more reliable as well as enable the operator to work a distance form the operation.
Hencon BV (Netherlands) - well know supplier of vehicles for anode loading, ladle handling and other applications, signed a major sales contract with Alusaf covering the supply of 18 vehicles. The most important new special machine is "carbon dust removing machine" which is unique and especially well-adapted for VSS pots where it made its debut at Lista. (EnalPanel)
Reel (France) - The French Group REEL is a newcomer in the industry of aluminum smelter equipment. REEL, 500 employees in Lyon, France, is best known worldwide as a supplier of specialty gantry cranes with remote handling systems for nuclear plants. Their acquisition of Canadian Overhead Handling, 100 employees, in 1996, constituted their first entry in aluminum, COH being already a supplier of casthouse gantry cranes and of alumina hopper handling cranes well known on the North American market. In 2000, REEL acquired NKM, a reputable manufacturer of baking oven cranes and pot tending machines in the Netherlands. About at the same time, REEL acquired a controlling interest in ASMI, the new engineering and services firm created by Serge Huon, ex-Sales Manager of ECL (world leader in pot tending machines, an Aluminium Pechiney subsidiary). Serge Huon acts now as REEL's Vice President for business development in the primary aluminum industry.

Other Items of Interest

LME Monthly Aluminum Price Averages

($/Tonne)
	04/2001	05/2001	06/2001	07/2001
Cash Buyer
	1495.55	1538.33	1465.71	1416.05
Cash Seller & Settlement
	1497.26	1539.21	1466.55	1416.73
Cash Mean
	1496.91	1538.77	1466.13	1416.39
Three Months Buyer
	1509.63	1534.83	1487.88	1441.09
Three Months Seller
	1510.42	1535.60	1488.64	1441.84
Three Months Mean
	1510.03	1535.21	1488.26	1441.47

Mergers & Acquisitions

Mostar (Bosnia Herzegovina) - Glencore is participating in the privatization of Aluminij Mostar as well as technology agreements. The 92 ktpy capacity smelter will have its 1.46 mt of alumina supplied from now until 2007 by Aluminij Mostar with Glencore taking 240 ktpy of aluminum . (MetalBulletin)
Elkem Purchase - Alcoa launched a takeover bid for Elkem, Norway's second largest aluminium producer,valuing it at some $850 million after clinching 40 percent control. Elkem's aluminium division is already owned 50-50 with Alcoa and has an annual capacity of 200 ktpy. (Reuters) Orkla, the second biggest shareholder, raised its stake in Elkem to 34.8 percent, securing a tighter grip on the Alcoa takeover target.(Reuters) Alcoa would stop buying shares in Elkem, a Norwegian metals company, after failing to win acceptance for its US$850m . (Financial Times) The European Commission said that Alcoa had abandoned plans to seek regulatory approval for a purchase of Elkem. (Reuters)
Pechiney to increase stake in Tomago - AMP Life Ltd. has agreed to sell its 15% stake in Tomago to Pechiney for about $220 million. This purchase will raise Pechiney's stake in Tomago to 51.55%. (MetalBulletin) An agreement with AMP Henderson Global Investors was signed by Pechiney in the second half of 2000 increasing the groups stake by 15.5%. The annual capacity in Tomago in 2001 is expected at 480 ktpy tons. AMP Life continues holding an indirect interest of 10.815% through its 30% shareholding in Gove Aluminum Finance, Ltd. with CSR holding a 70% interest. (LMA)
Indal capacity boosts through acquisitions -Alcan in March 2000 sold of all its 54.6% stake in Indal to Hindalco for $169m while accepting the Rs190 per share with a total of 38.84m shares. Moreover, Hindalco purchased 20% more of Indal to bring about a 74.6% total ownership. A downstream capacity of 100 ktpy in addition to Indal's upstream capacity was also purchased in this cash handled acquisition. A five year plan to boost capacity through acquisitions was announced by Hindalco in June 2000. Also targeted is the addition of 1.5m tpy aluminum and 4.6 tpy of alumina of capacity. The acquisitions include a 55% stake in the $900m Utkal alumina project . Sterlite Industries Ltd. acquired a 51% share bid in Balco, however combined with there are numerous obstacles withstanding. (LMA) Sterlite purchase of stake in Bharat Aluminium faces ongoing hostility. (MetalBulletin) Indal announced that that Utkal alumina plant in Orissa will start funtioning soon. The project should take off in a few months. Indal has a 24 per cent stake while, Hydro Aluminium has a 45 per cent stake and Alcon has a 35 per cent stake. Hydro pulled out of the project after the controversy of the Rs 40bn ($828mn) project cost for the 104 million tonne alumina plant. Indal has invested Rs 750mn ($15.5) till now.(Times of India) Indal will pay $6 mn to Norsk Hydro for the additional 35 per cent stake which would give them up to a controlling 55 per cent. The project is expected to produce one million tonnes in 2005-06. (The Economic Times)
VAW purchase of Kurri Kurri complete - The sale of the Kurri Kurri smelter to VAW for A$490-mil ($260-mil) was completed in mid-October. (Platt'sMtlWk) The smelter is now named VAW Kurri Kurri Pty. Ltd. (EnalPanel)
ALRO privatization - Plans for a 54.72% stake in the ALRO smelter and 69.9% in Alprom were published in 2000 though not officially announced. Separate privatization of the plants has been decided. Pechiney refurbished the Alro smelter in Slatina using their own technology. Balli, which operates the alumina refinery in Tulcea, is most likely to be the buyer. (LMA) The privatization is now expected in 2002. (EnalPanel) The State Ownership Fund has repeatedly changed its mind regarding what form the tender will take. The Romanian government put on sale the controlling block of shares (51%) of ALRO Slatina. The interested parties were Pechiney, Alcan, Alcoa, Marco International, the Balli Group and Rusal. (Metal Fond Russia) The Balli Group and a consortium of US merchant Marco International and Conef Bucuresti had been shortlisted to bid for a majority stake in the Aluminium Romania Slatina smelter. (Platts) The Balli Group had withdrawn from the bidding for Alro .The Marco-led consortium, which already owns 41.85 percent of Alro's share capital , had bought specification books and paid $20 million as guarantees. It would have to ensure a capital injection of $45-50 million to help the smelter. (Reuters) Romania's Privatisation Agency APAPS shortened by two weeks the deadline for lodging binding bids for the sale of Alro following a request from the sole bidder Marco.(Reuters) The Romanian Authority for Privatization and a consortium made up of Marco Aquisitions, Marco International and Conef signed a contract for the sale-buying of ten percent of the Alro Slatina shares, with the transaction exceeding US$ 72.9 million. The consortium owns now 51.7 percent of the shares. The investor promised to keep the current number of 3,709 employees until 2006, not to change the company's main activity for five years, not to voluntarily decide on the company's liquidation, to reach a turnover 70 percent of which to be supplied from the company's main activity. (Rompres - 04/30/02)
Balco privatization - Bharat Aluminium (Balco)'s Korba Soderberg smelter was successfully privatized and 51% ownership taken over by Sterlite and associates by March 2001. The smelter was never shut down during the strike of early '01, and the frozen pots have all been restarted as of August 2001. (EnalPanel) Balco planned to raise annual capacity of its aluminium smelter by 60 kt to 160 ktpy and of its alumina refinery from 200 ktpy to 350 ktpy. The project that has already started will be completed in 15 months. The company has also planned to hike the capacity of its power plant from 270MW to 370 MW. (Reuters) Reminder: this is a 1973 Soderberg of 100kA of same Russian (VAMI) technology as Seydisehir (Turkey) and Egyptalum. It is yet unclear if the expansion will be in Soderberg technology or the occasion of a prebake conversion. (EnalPanel)

Labor Issues

Kaiser Strike - The two-year strike at five US Kaiser smelters ended with the return of approximately 2,260 members of USW under a new five-year collective bargaining agreement expiring 30 September, 2005. (LMA)
Dunkirk (France) - A five week long strike was seen at Pechiney's smelter in March 2000 while the smelter operated at minimum staff. The strike resulted in deterioration of conditions and plant installations taking several months of repairs at an estimated FFR100m ($14.5m), excluding costs from production loss. All production sells to Pechiney, which receives for Pechiney Rhenalu 190 ktonnes of slabs. (LMA)
Hydro sees savings, job cuts with VAW - Hydro plans cost saving of 1.6 bln crowns a year through the takeover by the end of 2003. This would also lead to 1,100 job cuts. The light metals division would have an annual turnover of US$8.96 bln after the purchase. (Reuters)

China

Expected closures - A combined 250 ktpy of production from more than 50 smelters are expected to close in coming years being unable to meet costs to upgrade to environmental standard upgrades. High energy costs averaging $24 per MWh are also reasons that will shut down these mostly coastal smelters.(LMA)
Doubling Production by 2005 - Expectation of doubling China's production to 6m by 2005 is expected from its current 3m. Continuing increases in capacities could contribute to fluctuating supply and demand. (LMA)
China expected to be world's major aluminum producer . In light of this announcement is the merger of Chalco with five other producers and one ingot smelter to become Chinalco (total capacity of 4.2-4.3 mil mt/year of alumina and 700,000 mt/year of ingot exceeding that of Alcan), the preferential tax policy granted to 13 major producers to help cut production costs, and low imported alumina prices are thought to be supportive factors. (Platt'sMtlWk) Alcan has been reported to be still bigger than Chinalco: Alcan has a worldwide capacity of 4.4m tpy of alumina and 2.3m tpy in aluminium. (EnalPanel)
Chalco/Alcan project in Xinxi - Chalco renews the joint venture project with Alcan to build a 240 ktpy smelter in the province through an equal split stake in the venture. The two parties will conducted a feasibility study of the $1.2b project that will produce aluminum ingot bound for domestic market. (LMA)
Alcan Explores Expansions - The current interest to invest in China is by Alcan is that of state-owned Chinalco among others. In particular are those areas in central and western China. (MetalBulletin)
Chalco to request intervention - Chalco "plans to appeal for state intervention to control border trade in Inner Mongolia by raising import duties and value-added tax." (Platt'sMtlWk)
China ups production - China is increasing primary aluminum capacity, but will not catch up to the consumption rate for a few years. China produced 2.6 million tonnes in 1999, then an estimated 2.9 million tonnes in 2000. 2001 production is forecast to reach 3.3 million tonnes. To meet demand, China imported over half a million tonnes in 2000. (Reuters)
Pechiney to build alumina refinery in China - Pechiney and Chinese Minmetals are in talks over a plan to build a new alumina refinery in China. The refinery would have an initial capacity of 400,000 tonnes per year, rising eventually to as much as 2 million tonnes per year and it will cost between $480-$600 mn. (www.aluminium.org)
Pingguo Aluminum Restructured Into Two Separate Enterprises - Pingguo Aluminum was recently split into two separate entities, Pingguo Aluminum Co. and the Guangxi branch of Chalco. The move is aimed at injecting Pingguo's assets in China's Guangxi Zhuang Region into Chalco and thereby strengthen the latter's position on the overseas markets. (Interfax)
Asia Aluminium targets rivals for capacity expansion - Hong Kong based aluminium extruder Asia Aluminium plans to enter a joint-venture to acquire a smelter in either northwest or northeast China. (South China Morning Post - 04/04/02)
China to build new aluminium smelters - China's aluminium output capacity rose to 4.26 mn tonnes in 2001, some 930 kt more than expected. Aluminium output capacity also expected to rise by one million tonnes, to 5.26 million tones in 2002. The country’s China's State Economic and Trade Commission (SETC) proposed the central government to support aluminium projects in the bauxite-rich provinces of Shanxi and Henan where also house the country's largest alumina refineries including Shanxi, Zhengzhou and Zhongzhou. As part of its campaign to develop the western hinterland, China would also support technical upgrades at smelters of Qingtongxia, Lanzhou, Liancheng, Baotou and Baiyin.(Reuters - 04/12/02)

CIS

Siberian Urals Aluminium Co. (SUAL) - In November, it was announced that Trustconsult will sell its 50% stake in SUAL, as well as its controlling stakes in the Bogoslovsk smelter, Kandalaksha smelter, and the Kamensk-Uralsk complex, to Access-Renova, making Renova the sole owner of SUAL Holding. The sale should take place within a year. (MetalBulletin)

Other

Dubal wants to triple Gulf aluminium capacity by 2010 - Aluminium capacity in the Gulf should be triple today's level of 1.37-mil mt/year by 2010 if a projected increase in global consumption is to be met, particularly in the light of production decreases from the high energy cost markets like the US.(Platts) Dubal, along with Bahrain's Alba, enjoys the lowest cost of production of primary aluminium with less than $800/tonne, same as Alba. Average cost of producing primary aluminium internationally is about $1,100 per tonne in early 2001. (The Gulf News)

Nalco stake to be sold by the Indian government The Indian government owning 87 percent of NALCO, plans to sell a 30-percent stake by next April through American Depositary Receipts, Global Depositary Receipts and the domestic market. (Reuters) Nalco plans to raise the limit for foreign portfolio investments in the company to 49 per cent.It needs the approval of the shareholders. (The Times of India) Pechiney has proposed a joint venture with Nalco for setting up an integrated aluminium facility in the country. The proposed joint venture will seek to establish an integrated aluminium unit comprising mining and smelting facilities at an estimated cost of Rs 5000 crore (US$ 1.04 bn). (Economic Times) Pechiney would be willing to pick up even a 26 per cent stake as and when the Indian government decides to divest its stake in Nalco. There is also a possibility of integrating the operations of Nalco and the greenfield alumina project. (The Business Standard) The government decided to sale 29.15 per cent to a strategic partner, after reserving two per cent for employees. The last date for expressions of interest from investment bankers is March 27.(The Times of India) Despite the Government of India decided to disinvest 30 per cent of its stake in Nalco, the company would not be privatized as the state would still have total control with 57 per cent stake. (The Times of India -04/26/02)

CVDR to expand its operations - CVRD is considering expanding its bauxite-alumina operations in northern Brazil. The company would only expand if there were a guaranteed market for the extra primary aluminum output. The primary aluminium smelting would be done via a "hand-in-hand" partnership with other companies. (Business News Americas)
Alcoa had acquired a strategic 8 percent stake in China Aluminum Corp (Chalko), the world's No. 3 aluminium producer. The companies envision a 50/50 joint venture at a Chalco facility. (EnalPanel)
Norwegian government to sell off its Hydro stake - The Norwegian government is to sell off large parts of its stakes in Norwegian companies. (Aftenposten) The Norwegian government decided to reduce its stake in Norsk Hydro to 34 percent from 43.82 percent.
(Reuters/Aftenposten 04/19/02)
Aditya (India) - Hindalco intended to add 1.15m tpy of aluminum when Sterlite acquired 51% of Balco. Meanwhile, Hindalco has abandoned the 300 ktpy Aditya project. (EnalPanel)The boost will consist of 100 ktpy from Balco; 50 ktpy from Indal; 345 ktpy from Nalco; 350 ktpy from its operations; and 300 ktpy from Aditya. It is expected to face numerous obstacles. (LMA) Sterlite Industries LTD is to integrate its copper and aluminum businesses, pursue backward integration into mining, in addition to have a demergence from the telecommunications sector as recommended by Arthur Andersen Consulting. Acceptance of parts of the proposal was seen in light of Sterlite's abandonment of the 125 ktpy greenfield project in Orissa. Also, is a 47 ktpy capacity production targeted from a modernization program. (LMA)
Veracruz (Mexico) - Grupo Carso's Aluver decides to continue full capacity production. Cuts in output at the Veracruz plant may occur due to increased prices of imported alumina from Venezuela's Bauxilum. A reported 65 ktpy of ingots and billets was produced in 2000. Industrias Nacobre, which operates the plant and imports the alumina, receives over 50% of Aluver's production at its three Nacobre plants. (LMA)
Valezul (Brazil) - Despite rises in 2000 and 2001 in Brazilian aluminum output, Valezul remains stable at 93.4 ktonnes of output due to technical improvements being conducted to allow higher usage of installed capacity. (MetalBulletin)
Podgorica as largest business open to foreign investment - Low cost hydro energy will be a key advantage for investment. Glencore has invested $25m in equity to fund working capital with a plan to double capacity. (EnalPanel)
Aluminum prices to rise by 10% in 2002 - Stronger economic growth and demand and closed production in the Pacific NW USA will lead to prices that may reach as high as $0.85/lb according to Scotia Capital metals and mining analyst John Redstone. Macquarie Bank's analyst Adam Rowley predicts economic growth unlikely to resume in the USA and Japan until 2002. GDP in the USA is to increase from 1.6% to 2.6% and Japan from 1.0% to 1.8%. Analysts predict smelters in the USA's northwest to encounter costs of higher than $2/lb under current electricity conflict with BPA. (MetalBulletin)
St Croix refinery to suspend operations - Due to inadequate demand from Alcoa's US smelters, Alcoa has decided to suspend operations at the St Croix refinery in the US Virgin Islands indefinitely and starting by the end of January 2002. (Platt'sMtlWk, MetalBulletin)
Russian Aluminium Company to receive $47m in loans from Raffeisen - Bank Austria for production and export operations. Additionally, will be $100m from Vnesheconombank to finance working capital and investment programs with Vnesheconmbank auditing investment projects and attracting foreign loans as needed. (Russia Metals)
Northwest US power prices soar -Alcoa and BPA confirmed agreement regarding power allocation to 's Ferndale (Intalco) Washington smelter. (EnalPanel) is idling the Ferndale (Intalco) aluminum smelter after agreements were reached with BPA. is to sell back any unused power and 90% of its electricity allocation from 1 October 2001 - 30 September 2003 period. Resulting revenues will be used for employee wages and benefits, with no immediate layoffs planned. Remaining power until 30 September is to be used at 's NW Alloys magnesium plant, and for lighting maintenance and security of the Ferndale smelter. (MetalBulletin)
BPA signed a new 5-year contract with five aluminum companies which operate ten smelters in the Pacific Northwest: (Wenatchee, Intalco, Longview, Troutdale), Kaiser (Mead, Tacoma), Vanalco (Vancouver), Columbia Falls, and Golden Northwest (Goldendale, The Dalles). Together, the companies will take 1,486MW at a price of 23.5 mills/kWh, plus a delivery charge of 3 mills/kWh for 1 October 2001 through 30 September 2006. The contract will allow Kaiser to operate at about 40% of their Northwest smelting capacity. Any more capacity would require power from other sources. (Platt'sMtlWk) BPA (Bonneville Power Authority) so far has forced smelter shutdowns from Kaiser, , Vanalco, Golden, Northwest, and Columbia Falls as a result of the five year power deal with prices that are approximately 30% above global averages. This has rendered smelters in the northwestern USA to be the least competitive with BPA supplying less than 25% power than the previous contracts. (LMA)
Columbia Falls idled two and a half of five potlines due to high power prices. The company planned to sell back 60MW of power in the fourth quarter. (Platt'sMtlWk) The company is considering the possibility of constructing its own power plant. (MetalBulletin) Recent reports indicates that as a result of high-energy costs, the 165 ktpy Montana primary smelter has reduced production by approximately 33 ktpy through shutdown of four potlines. (EnalPanel, LMA)
Golden Aluminum has signed an MoU with Goldendale Energy Inc and BPA to build a new 248MW gas-fired power plant. Golden Aluminum and Northwest Aluminum will buy the new plant's output once it comes on line in mid-2002. Goldendale is currently completing an expansion and modernization of its casthouse. (MetalBulletin, Reuters) Golden Northwest Aluminium, would not restart smelter operations until it lines up cheaper power and reaches new labour agreements with its workers. (Business Recorder - 04/02/02)
Kaiser sold a portion of its BPA power for $47 million. (Platt'sMtlWk) In order to sell back this power, Kaiser plans to idle about 48ktpy at its Mead smelter, bringing production down to 33% of capacity. (Platt'sMtlWk)
Kaiser asset sale speculation - In an effort to reduce debts totaling nearly $1b, analysts predicts that one of Kaiser's facilities could be sold. Mead and Tacoma smelters could be sold, however independent power supplies must be build adding to the cost of the acquisition. Kaiser has to pay off debts of $225m by February 2002 and $400m by February 2003. (MetalBulletin) The USW protested the decision to cut back production and jobs, asking why Kaiser was not investigating alternate power supplies as other smelters in the region have. To which Kaiser responded that its top priority right now is the restart of Gramercy. (MetalBulletin) USW urges self sufficiency by a two-rate plan for BPA customers to receive 75% of power for 2001-2006 with additional power sold at higher market rates. (PlattsMtlWk) Production at Mead is not planned to restart until after 1 October 2001, when the new BPA contract takes effect and when its unused electricity is sold back to BPA. (Reuters)
Brazilian Smelter Cutbacks -Six out of seven smelters suffer from power curtailments in the region of 20-25% for at least six months, which gives an idle capacity of more than 330 ktpy. (EnalPanel) In 2000 the production of aluminum was 1.277m tones with power contributing to 35% of production costs. The Brazilian aluminum sector consumes 6% of the generated power in Brazil (Gazeta Mercantil). Brazilian government declares 15-20% power cut in the NE and SE regions inevitable. Length of time for the rationing is undecided until the next rainy season. It will likely last from 6 months to one year. (MetalBulletin) Southeastern smelters are likely to see cuts in production for the entire second half of the year due to likely electricity rationing by the government. The cuts are expected to proceed for six months beginning in June in Minas Gerais state. A stipulation of power consumption cuts by 15% for six months is under consideration by the government. (Platt'sMtlWk) Temporary Alcoa closure of 148 ktpy of capacity seen (EnalPanel) Alcoa to invest $800m in power for its own consumption. (EnalPanel, Gazeta Mercantil) Alcoa's Alumar smelter will resume full production following the suspension of energy rationing in northern Brazil. Aluminium output was cut at San Luis by 63 ktpy from July 1, 2001, and by an additional 29,500 tonnes from September 2001, making a total cut of around 25 percent of overall production capacity of 370 ktpy. It is expected that the smelter will operate at full capacity by the end of the first quarter of 2002. (Reuters) Alcoa announced that its Pocos de Caldas aluminium smelter will continue to operate at about 75 percent capacity, or about 67,500 tonnes a year, due to the maintenance of energy rationing in the southeast Brazil.(Reuters)
Canadian cuts in productions. Under a new power agreement with BC Hydro, it will cut production by 40kt over 16 months (30ktpy), instead of the shutdown of a 50ktpy line as was earlier envisaged. (Reuters) It is reported that Alcan has cut production at Kitimat to 50% (140 ktpy out of service). (EnalPanel) Alcan cuts production at Kitimat in British Columbia by nearly 20% for at least 10-months. This will be some C$10m in lost sales a month A more flexible contract with BC Hydro is being considered enabling the generator to supply more power later in the year with rising water levels and trimming of production levels. Some individual pots are to be taken down in the next few months with power reduced to the remaining operational ones. Production loss over the course of the 16 months will cost C$100m. (MetalBulletin) Reported was the closing capacity of 73 ktpy in the Maligne smelter in Quebec. (MetalBulletin)
Chinalco and Datang Power have signed a memorandum of understanding on the supply of electricity to an aluminium smelter to be built in Shanxi Province. Datang will build and operate a 675MW power plant and sell power to the new smelter at a price of 220 yuan (US$26.6) per MWh for 25 years. (Asia Pulse)
Billiton has agreed to be Nigeria's partner in rolling out aluminium from the N250 billion of Nigeria's ALSCON, Ikot Abasi.The smelter should roll out of the plant in the year or early next year.(www.amebo.com)
German E.ON has agreed to sell VAW to Norsk Hydro for 3.1 bln euros ($2.78 bln) including debt and pensions provisions. E.ON would earn 1.1 bln euros in tax-free profit from the sale, which should be completed in the first quarter of 2002 after anti-trust approval. (Reuters) Remark: A consequence of this merger will be combining both groups' resources in technology sales, which are considerable .(ENAL) The merger is very logical from the technological and economic point of view. Hydro Aluminium is a low cost producer of primary aluminium, VAW is one of the top experts in rolling both of slabs and foil. Hydro never achieved a leading role in this field and lost money on it even in good times. Hydro is leading in the fabrication of extruded products but VAW has a lead in application of extruded system, especially in the automotive industry. VAW has aluminium smelters all over the world (Quebec, North America, Australia) and sold smelter and associated technology all over the world (Iceland, China, Australia), whereas Hydro was unsuccessful in selling such technology, except in Slovakia. It still suffers from failure in Venezuela (Quinta Linea) and Dubal (anode baking). VAW has a very successful sales operation both for primary aluminium, fabricated products and technology whereas Hydro had an unfortunate record including forward sales of primary metal.(EnalPanel) A new Hydro Aluminium is expected to be fully operational by July 2002. (Business Wire)
Nalco intends to expand overseas in 2003 - Nalco plans to set up smelter in Qatar. The unit will have an installed capacity of 250ktpy to 500ktpy and will need an investment of up to INR100 billion (US$ 20.5bn). The company wants to use cheaply available gas in Qatar to produce aluminum at lower costs to compete internationally. (The Business Standard) Pechiney and Nalco may enter into a joint venture for the Qatar aluminium smelter while a search is on for a strategic partner for the Guinea alumina refinery. (The Economic Times)Nalco is in advanced talks with the government in Qatar and Japanese investors to set up a US$ 2bn smelter in the Gulf state. The project, which will be finalised this year, would be Nalco's first overseas venture. It would use its surplus alumina from India and Qatar's cheap and abundant supply of gas-based power to make aluminium for export. (The Financial Times)
Rusal suspended production at Oradea Alumina -The Oradea refinery (Romania) has been restarted using imported better-quality, imported Australian bauxite. It planed to produce around 200kt of alumina in 2001 and is now run by Russian Aluminium. Starting 22 January 2002, Rusal suspended work at its Romanian alumina plant Oradea due to high cost of its alumina. Rusal bought Oradea for US$ 11mn in 2000. (Romania Libera)
CVG Venezuela's heavy industry holding wound up aluminum subsidiary Cavsa allowing the four units it encompasses - Alcasa, Venalum, Bauxilum and Carbonorca - to operate independently. The government intends to strengthen the aluminum sector by forming strategic partnerships with private companies, but has ruled out selling off the four companies directly. (Business News Americas) CVG president Francisco Rangel Gomez appointed Lenin Berroeta to run Venalum, Daniel Iribarren as Bauxilum president, Jose Ignacio Echeverria as Carbonorca president and Dixon Rossilon as president of Alcasa. According to Gomez the government is opening each company to joint ventures. (EnalPanel)
Ukraine Mykolayiv alumina plant produced approximately 1,119,500 tonnes of alumina in 2001.(BBC/Interfax)
Brazil - Aluminium production fell down 1,130mt in 2001 compared to 2000's 1,271mt. Abal's Pocos de Caldas, Valesul, Alumar, Albras, and CBA produced 1,037.9 mt and Alcan's smelters Ouro Preto and Aratu, produced 92.1 mt of aluminium. (Business News Americas)
SUAL is seeking a takeover of the anode producer, Novosibirsk Electrode Plant, but the move has been resisted by the management
and controlling shareholder, Energoprom. (Platts)

Alba started its new $400 million (BD151.2m) coke calcining. The plant will produce 450 ktpy of calcined coke enabling Alba to meet all its requirements of 250 ktpy. (Gulf Daily News)
Venalum tech investments to continue - Investments in technology and maintenance at state aluminum company CVG Venalum continues. Plans this year include replacing a furnace, cranes and improved working conditions for employees. The company lifted production to 412.38kt, or 96% of capacity. (Business News America)
RusAl signed a long-term contract with Sual - RusAl announced they signed a long-term contract to buy 400,000mt/year of alumina from SUAL; that is 20% of a total of 2-mill mt of alumina which RusAl is buying from contract suppliers worldwide. (Platts)
Kaiser Aluminum standing on edge of bankruptcy - Kaiser Aluminum battered by a heavy load of debt and low aluminum prices, is likely to file for bankruptcy protection. The company is unlikely to have enough cash to pay about $174 million in principal to its bond owners. Alarm bells on Kaiser have been ringing for a while but came to a head on Jan 30 when it said it was defaulting on a $25.5 million interest payment. The company has sought a 30-day grace period to pay the interest. Kaiser is currently saddled with about a billion dollars in debts, out of which banks are owed $350 million while the rest is owed to bond holders. On 13 February, 2002 the company has received interim approval from the Bankruptcy Court to use up to $100 million of its $300 million in Debtor-in-Possession (DIP) financing, together with existing invested cash, to continue operations, pay employees and purchase goods and services going forward during its voluntary Chapter 11 case. (Reuters/Business Wire)
Guinea parliament ratifies RusAl bauxite deal - Guinea's parliament has ratified a deal with RusAl awarding the aluminum producer a concession to develop a key bauxite mine in the West African country. RusAl signed a $1.6 billion deal to develop the Dian-Dian deposit RusAl says the deposit has known reserves of 650 million tonnes of bauxite but could contain as much as 1.5 billion tonnes. (Reuters)
Canada's HATCH in Russia aluminium project -SUAL signed a deal with HATCH on partnership , in building an alumina refinery and an aluminium smelter. The plant's construction will be part of the development of the Sredni Timan deposit of bauxite . SUAL plans to raise Sredni Timan's bauxite output to 5 mn tonnes in 2010 from around 700,000 tonnes in 2001. (Reuters)
Iran interested in CVG deals - Iran is interested in striking partnership deals with Venezuela's state heavy industry holding CVG in the areas of aluminum and steelmaking. This was stated at the visit of the Iranian energy and mining minister Jahanghiri to Guayana region in Venezuela. The minister said they would carry out a thorough analysis of Iran's potential role in Venezuela's aluminium sector and offer projects to benefit to both countries. CVG said that the search for strategic partners for the aluminium subsidiary would be a priority in 2002. (Business News Americas)
Alouette granted cheap power to expand Quebec smelter - The Quebec government has announced a $260 mn interest-free loan and an
offer of 500 MW block of electricity at a preferential rate to a consortium led by Alcan to power its 20 pct affiliate Aluminerie Alouette's Sept-Iles smelter.In exchange for the aid, Alcan and Alouette have committed themselves to investing 1.4 bln cad (US$800 mn) in doubling the capacity of the Sept-Iles plant. This will create approximately 500 jobs by 2005, and another 1,000 in transformation over ten years. (AFX)
EdF sold entire Pechiney stake - Electricite de France sold its 7.75 percent stake in Pechiney in a private placement with institutional investors for about 368 million euros. EdF bought into Pechiney when it was privatised at the start of 1996. Other leading shareholders have included BNP Paribas, AGF and Credit Suisse. Just under half of Pechiney's capital is currently traded on the market. (Reuters)
Pechiney in $700 million greenfield alumina project plan - Pechiney signed a letter of intent with the Orissa government for setting up of a greenfield bauxite mining and alumina refinery complex in the state. The refining capacity of the project will be about one million tonne and it will be set up with an investment of $700 million. The work on the project could start in 2003 and it will go on stream in 2007.(The Business Standard)
Valco closes potline after government cuts power - Forced by the government’s power reduction Valco closed down one of its four operating pot lines at its 200 ktpysmelter in Ghana. (Reuters)
Pechiney to build a smelter in South Africa - Pechiney reached an agreement with Eskom SA in respect of a multi-year energy supply contract for the operation of an aluminium smelter in the Industrial Development Zone of Coega SA. The 460 ktpy smelter will use latest AP50 technology. The start of production is planned for 2005.(Business Wire)
Corus to sell aluminium operations - CORUS intends to sale by the summer its aluminium division for up to L1 bn (US$1.4 bn)to cut debt and provide cash to continue its reorganisation. The company concluded that the possibility of the group taking any meaningful growth steps in aluminium, in the face of continuing consolidation in that industry, is not realistic and the sale of the aluminium businesses will be put in hand immediately. The Corus business turns out 250ktpy, or half the raw material needed for its finished products. It generates sales of one billion pounds and employs 5,000 people in Germany, Belgium, Canada and China. The company confirmed that a total of 4,000 jobs are scheduled to be lost through to 2004 as a result of efficiency improvement measures announced over the past two years. Potential bidders are thought to include Alcan, Alcoa, Pechiney, Norsk Hydro and Sapa. (Electronic Telegraph/The Observer) Pechiney expressed its intereste in the Corus dossier and is examining its legal .
Chinalco's Capacity Expansion - Chinalco will invest 4 bn yuan (US$483 mn)in 15 key projects in 2002 and
increase its alumina production capacity by 580,000 tons and aluminium capacity by 62,000 tons. (Xinhua)
Plans made for sale of aluminum smelter - Glencore is buying the bankrupt Vanalco aluminum smelter,shut down in 2000, for $25.2 mn. The 115 ktpy smelter would start up again sometime in the next 12 to 18 months. (The Seattle Times - 03/31/02) Glencore International AG completed the purchase of the 62 year-old, 115ktpy bankrupted smelter Vanalco , in Vancouver, Washington, for $24 million. (Reuters 04/26/02
Alcoa in talks on Iceland aluminium smelter - Alcoa is in talks with the Icelandic government on building a 280ktpy. A decision was expected within the next two months after Alcoa had conducted a feasibility study. (Reuters - 04/23/02)
RusAl plans to finance new plants - RusAl plans an initial public offering (IPO) of shares and issuance of bonds in two years to finance new plants. (www.rusal.com/Reuters - 04/24/02)
BHP Billiton eyes aluminium costs, targets investment - BHP Billiton is looking to cut annual costs across its aluminium operations by more than two per cent while targeting another $US600 mn ($A1.1 bn) in capital spending to boost output through greenfield expansion and acquisitions over the next three years. (AAP - 04/30/02)BHP is the shareholder of Alumar, Hillside, Bayside, Mozal and Valesul. (EnalPanel)
Alcoa to expand Jamalco Alumina Refinery operations - Alcoa and the Government of Jamaica decided to invest $115 million to expand the Jamalco alumina refinery in Clarendon, Jamaica. The expansion will increase the capacity by 25% making it a 1.25 mn metric tons per year. It is expected to be completed in 2003. (Business Wire - 04/27/02)
Malawi to become a new aluminium greenfield project? - Millennium Mining has been awarded a three-year EPL over the Mulanje Mountain to explore and develop Malawi's bauxite resources. The MetChem study of 1994 estimated capital costs of the alumina refinery (without the smelter) at US$157 mn, with an annual revenue of around US$40 mn. Millenium is trying to obtain funding for a new feasibility study and opened a dialogue with the Chinese Chinalco. The company believes the study will take a minimum of two years to complete. Construction of the mine and plant would be expected to take another 18-24 months. (African Mining Magazine Jan-Feb, 2002)
Russian firm plans Iceland aluminium smelter - Atlantsal, owned by Rusal's Transal and VAMI and Icelandic Altech, plans to build an aluminium smelter with a capacity of 360 ktpy and an alumina refinery with a capacity of two million tonnes by 2006. The study will be launched this summer. The smelter is considered to be built in northern, while the alumina refinery will be built either in northern or in southwest part of Iceland.The plant would primarily refine alumina from Guinea. (Reuters - 05/03/02)
Russia to build another smelter in Iceland - The Russian investors had expressed their interest in building a 280 ktpy smelter in eastern Iceland, which is also being considered by U.S. group Alcoa Inc. Norway's Norsk Hydro was the original partner for the project in eastern Iceland, but earlier this year postponed a decision on whether to participate. (Reuters - 05/03/02)
China and Vietnam to meet on $800 mn alumina project - Chinese NFC had completed a prefeasibility study for an alumina plant in Daklak's Dak Nong district capable of producing one million tonnes annually. The project would include the construction of a $400 mn railway to take the alumina to Thi Vai port in the southern province of Ba Ria-Vung Tau, some 470 km (292 miles) southeast of Daklak for export to China. Vimico will start negotiations with Chinese on Sunday. However, Alcoa is also interested in the project, and had approached the Vietnamese authorities three times. The Daklak province may hold bauxite ore reserves of 2.5 billion tonnes, based on surveys some 20 years ago at three mines in Dak Nong and Dak Rlap districts, all of which were untapped. (Reuters -05/08/02)
Kazakhstan might sell its 31.64 percent stake in Alyuminiy Kazakhstana - This is expected to take place in August or September provided the parliament adopts a new law on joint-stock companies which should stipulate that the blocking package of shares in joint-stock companies should amount to 25 percent. (BBC Monitoring - 05/07/02)
Work set to start on Comalco port - Construction to begin on port facilities in Gladstone, in central eastern Queensland, as part of the $1.5 bn Comalco alumina refinery project, and which will be available to other new facilities, such as the Aldoga smelter are planned to be finished until 2005. (Australian Broadcasting Corp. 05/12/02)
Brazil aluminium aims to generate its own power by 2010 - Brazil's aluminium industry aims to beat an energy crisis by generating all its own power by 2010. Hydroelectric power plants are due to start output at Machadinho (1,140 MW) and Barra Grande ((690 MW) in the Rio Grande do Sul, Piraju (80 MW) in Sao Paulo state and Serra do Facao (210 MW) in Minas Gerais state, increasing self-sufficiency to 35 percent by 2005. By 2010 hydroelectric plants are scheduled to start operating at Santa Isabel (1,328 MW), Estreito (1,087 MW) and Serra Quebrada (1,328 MW) as well as at Pai Quere (390 MW) in the south. (Business Recorder - 05/12/02) ENAL Project
Pechiney is studying new plant in Vietnam - Pechiney is carrying out a feasibility study for a new alumina and aluminium plant at Lam Dong province in Vietnam. The factory would have production capacity of 300 ktpy of alumina and 72 ktpy of aluminium. (Reuters - 05/14/02)
Alcoa to decide on Iceland talks next week - Alcoa is expected to say next week whether it will enter formal talks to build a 280 ktpy aluminium smelter in Iceland. (Reuters 05/16/02)
Smallest Russian aluminium smelter to raise output - Russian smelter Volkhov plans to raise its 2002 production by 10 percent, up from an output of 21.6kt in 2001. The smelter is examining plans to raise its output three to fourfold, but did not give details. (Reuters 05/15/02)
Pechiney confirms Northern Territory smelter site for onshore gas - Pechiney has chosen Glyde Point and not Wickham Point as a site for a major smelter if Timor Sea gas comes onshore to Darwin by 2005. (Australian Broadcasting Corp. - 05/17/02)
BHP Billiton seen eying Venezuela aluminum project - According to CVG BHP Billiton has expressed an interest in developing a $2 bn aluminum and iron mining project in southeastern Venezuela. The project would cover aluminum "from the mines to production." (Reuters - 05/17/02)
Fushun Aluminium to operate new plant from July - Fushun Aluminium Co. will start operating a new plant with a capacity of 90ktpy in July. The company is constructing the new production line to replace an old one. It also intends to expand its capacity, but that is subject to approval by the government (Reuters - 05/23/02)
Alcoa plans talks on Iceland smelter - Alcoa Inc will launch formal talks with Iceland's government on building a 280ktpy smelter. The Alcoa plant would roughly double aluminium smelting capacity in Iceland. (Reuters - 05/23/02)
Alcoa hopes to start on Iceland smelter in summer - Alcoa would begin constructing a 320ktpy smelter in Iceland at the Reydarfjordur site this summer if the project proves viable. The company would negotiate with Iceland's government and make a decision before July 18. It would probably take about 30-36 months before the smelter could begin to operate, leaving the launch of aluminium production until the summer of 2005. (Reuters 05/23/02)
Alouette Phase II - Alouette awards the EPCM contract to SNC-Lavalin - Hatch - Aluminerie Alouette announced the award of the first contract of its $1.4 bn expansion project. A consortium composed of SNC-Lavalin and Hatch will be responsible for the engineering, procurement and construction management of Phase II of the Sept-Iles aluminum smelter. The project will start mid-September and the first metal should be cast beginning of 2005. The new plant will be able to produce more than 550ktpy. (Canada NewsWire - 05/23/02)
ALSCON set to resume operations in September - According to Nigeria's Government ALSCON will resume operations at Ikot Abasi in the first week of September 2002. (This Day/All Africa - 05/24/02)
Rusal to issue 200-300 mn usd eurobond, expand alumina capacity - Rusal is planning a eurobond issue of about 200-300 mln usd and an expansion of its alumina capacity with acquisitions in Guinea and Australia. The eurobond issue will probably take place in the second quarter. (AFX- 05/24/02) The money raised from the issue may be invested in different projects, including in Guinea and Australia. RusAl might use the proceeds from the Eurobond placement to upgrade its Bratsk, Krasnoyarsk, Sayansk and Novokuznetsk smelters, plus its Mykolayiv alumina plant in Ukraine. The money could also be invested in building new plants (Reuters - 05/27/02)
Rusal to boost its aluminium capacity - Rusal intends to boost its aluminium capacity. A decision on a 260ktpy plant in Sayansk, southern Siberia, is due by the year-end, while a viability study into a plant in Irkutsk, with 400-500ktpy capacity, is due to start soon. (AFX- 05/24/02)
China's Zhenxing builds aluminium plant - Beside the existing 20ktpy smelter in Shanxi, China's Zhenxing Group is building a second aluminium smelter worth 980 mn yuan ($118 mn) with a capacity of 100ktpy, which is expected to begin production in August. (Reuters - 05/27/02)
Zhenxing Group to plan 200ktpy aluminium plant - Zhenxing Group from the Chinese province Shanxi plans 200ktpy aluminium plant and 520mw power plant near Hejin city, close to Shanxi Aluminium Plant . The total investment will be 330 mn yuan. (Shanxi Province Development Planning Commission - 2002)
Baotou to complete upgrading in August - Baotou Aluminium expects to complete its 50ktpy upgrading project as scheduled in August. The project will lift capacity to 165ktpy from the current 115ktpy.,The old 30ktpy line will be shut down in 2003 leaving the plant with a final capacity of 135ktpy. (Platts - 05/28/02)
China expands Baiyin aluminium smelter - Baiyin Aluminum Smelter of China has started its 72,ktpy expansion project earlier this year, which will lift its capacity to 130ktpy when the expansion project is fully commissioned in June 2003. (Asia Pulse - 05/29/02)
Nalco to delay Angul expansion - Nalco plans to start trial production at the added unit at Angul, Orissa in November instead in May due to delay of the equipment arrival. The optimal capacity is planned to be reached in February 2003. (Business Recorder 05/30/02)

Smelter Name	Company	Capacity (tpy)
Mead	Kaiser Aluminum	200,000
Tacoma	Kaiser Aluminum	73,000
Ferndale	Alcoa	140,000
Wanatchee	Alcoa	220,000
Columbia Falls	Columbia Falls Aluminum	168,000
Goldenvale	Golden Northwest Aluminum	170,000
The Dalles	Golden Northwest Aluminum	92,000
Longview	McCook Metals Group	204,000
Vancouver	Vanalco	116,000
Troutdale	Alcoa	121,000
Total		1,504,000

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