Ma′aden Alcoa Joint Venture Reaches First Hot Metal Milestone for Smelter
Project delivered in record time, within budget, and with
excellent safety performance
The Saudi Arabian Mining Company (Ma′aden) and Alcoa (NYSE:AA)
celebrated the achievement of the First Hot Metal milestone today
12/12/2012 at their joint venture smelter project at Ras Al Khair in
Saudi Arabia. This milestone marks the successful commissioning of the
first of 720 smelting furnaces or 'pots?, and is a key step toward the
commercial production at the smelter.
At the ceremony marking the eventin Ras al Khair, Ma′aden
President and CEO Engineer Khalid Al Mudaifer said that the achievement
of First Hot Metal in only 25 months from the pouring of first concrete
is testimony to the vision of the Government of the Kingdom of Saudi
Arabia, and to the dedication of Ma′aden, Alcoa, and their respective
contractor teams.
'Today we see the first aluminium produced in Saudi Arabia, and the
launch of a new industry. One based on the natural resources and human
talent of the Kingdom, the vision of the Government, and the close
friendship and collaboration of Ma′aden and our joint venture partner,
Alcoa. The regional strength and expertise of Ma′aden and the
technological leadership and global market reach of Alcoa is a winning
combination,? Engr Mudaifer said.
Alcoa Chairman and CEO Klaus Kleinfeld said that the ceremony in Saudi
Arabia represents a momentous event for Alcoa and clear demonstration of
the Company′s focus on disciplined execution.
'The Ma′aden Alcoa joint venture is the largest fully integrated project
that Alcoa has embarked upon since creating the modern aluminum industry
nearly 125 years ago,? Kleinfeld said. 'It will be the lowest-cost
producer within our global smelting system and in addition to lowering
Alcoa′s overall cost base, will help establish Saudi Arabia as the
regional leader in the global aluminium industry. Alcoa is pleased to
play a role in creating new economic opportunities for the people of
Saudi Arabia, and delivering profitable growth for our Company.?
Chairman of the Ma′aden Aluminium joint venture, Engineer Abdullah
Busfar recounted some additional noteworthy statistics that have led to
the First Hot Metal milestone.
'From the outset this has been a project that has been managed to
achieve both cost and schedule targets. It is just 29 months since the
joint venture issued Bechtel with a Notice to Proceed with construction.
That is as we anticipated at the time, and it is in keeping with the
most advanced and disciplined project construction practices anywhere in
the world.
'We want to congratulate Bechtel and its team of 46 different
sub-contracting companies that employed the labor and expertise of about
14000 people from 25 different nationalities to reach this milestone.
They have worked almost 60 million hours with world-class safety
performance.
'More than 700 Saudi Arabian citizens have completed their initial
intensive training and are ready to take their place as skilled
operators within this smelter. That we can celebrate all this here
today, in what was desert less than three years ago, is a great credit
to everyone who has contributed to this project. This is exactly the
safe and productive outcome that our JV committed to delivering, and we
are very pleased that we are seeing it become reality,? Engr Busfar said.
About the Ma′aden Alcoa joint venture
In its initial phases, the joint venture will develop a fully integrated
industrial complex which will become the world's preeminent and
lowest-cost producer of primary aluminum, alumina and aluminum products,
with access to the growing markets of the Middle East and beyond. The
complex comprises:
A bauxite mine with an initial capacity of 4,000,000 metric tons per
year
An alumina refinery with an initial capacity of 1,800,000 metric tons
per year
An aluminum smelter with an initial capacity of 740,000 metric tons
per year
A rolling mill, with initial capacity of 380,000 metric tons per year.
The mill will be the first in the Middle East capable of producing
food grade can sheet, as well as sheet for automotive building and
construction applications, and will be one of the most technically
advanced mills in the world.
About Alcoa
Alcoa is the world′s leading producer of primary and fabricated
aluminum, as well as the world′s largest miner of bauxite and refiner of
alumina. In addition to inventing the modern-day aluminum industry,
Alcoa innovation has been behind major milestones in the aerospace,
automotive, packaging, building and construction, commercial
transportation, consumer electronics and industrial markets over the
past 120 years. Among the solutions Alcoa markets are flat-rolled
products, hard alloy extrusions, and forgings, as well as Alcoa ? wheels,
fastening systems, precision and investment castings, and building
systems in addition to its expertise in other light metals such as
titanium and nickel-based super alloys. Sustainability is an integral
part of Alcoa′s operating practices and the product design and
engineering it provides to customers. Alcoa has been a member of the Dow
Jones Sustainability Index for 11 consecutive years and approximately 75
percent of all of the aluminum ever produced since 1888 is still in
active use today. Alcoa employs approximately 61,000 people in 31
countries across the world. For more information, visit www.alcoa.com
and follow @Alcoa on Twitter
at twitter.com/Alcoa.
Alcoa
Investor Contact
Kelly Pasterick, 212-836-2674
or
Media
Contact
Libby Archell, 212-836-2632 (business)
347-901-1902
(mobile)
Libby.Archell@alcoa.com
