Delivering on our promises

Transcription

1 Delivering on our promises Abdulla Kalban Metal Bulletin s 29 th International Aluminium Conference Abu Dhabi, September 2014 Emirates Global Aluminium 0

2 Six years ago Emirates Global Aluminium 1

3 Six years ago Global economic recession commenced in 2008: Aluminium industry tumbling prices, rising inventories, uncertainty Substantial investments committed in the Middle East wisdom questioned by many But Middle East industry remained confident: Well-positioned to take advantage of opportunities Short-term pain eclipsed by long-term gain Excellent prospects Success factors: Efficiency Financial strength Timing Emirates Global Aluminium 2

4 Where do we stand today? Emirates Global Aluminium 3

5 Timing Additional capacity on-stream in GCC region in time for cyclical upswing 2008: Two smelters Capacity 1.92 Mtpa 2014: Six smelters Capacity 5 Mtpa Global demand growth to sustain at 5.8%pa till 2020 Ma aden Alba Qatalum DUBAL EMAL Kuwait Sohar Bahrain Saudi Arabia Qatar UAE Oman EMAL video Emirates Global Aluminium 4

6 Financial strength GCC nations renowned for financial strength The region is hydrocarbon rich: 56% of proven world reserves of oil 40% of proven world reserves of gas The region is politically stable Financial risk is minimal: UAE ranked 4 th on economic performance (IMD) UAE ranked 21 st in M&A Maturity index (out of 148 countries) Backing from national governments: Governments hold major shares (or outright owners) About 57% of new capacity owned by global majors Emirates Global Aluminium 5

7 Efficiency Report by Centre for European Policy Studies (released October 2013) Middle East smelters are industry lowest (per tonne aluminium in 2012): Conversion cost Business cost Economic cost per tonne The region ranked among the lowest in power costs (per tonne aluminium in 2012) Emirates Global Aluminium 6

8 Emirates Global Aluminium ( EGA ) Emirates Global Aluminium 7

9 A new industry champion (1) A leading global producer, built on a legacy of excellence Formed by Mubadala Development Company and Investment Corporation of Dubai through combination of aluminium industry assets Interests in bauxite mining/alumina refining and primary aluminium smelting Announcement and signing ceremony, June 2013 Emirates Global Aluminium 8

10 A new industry champion (2) A leading global producer, built on a legacy of excellence Effective integration of Dubai Aluminium ( DUBAL ) and Emirates Aluminium ( EMAL ) Primary aluminium production capacity is 2.4 M tpa: Almost half of GCC s total production EGA among the world s top five producers (by volume) UAE is the fourth largest aluminium producing country in the world Million tonnes Rusal Alcoa Chalco RTA EGA Shandong Xinfa CPI Weiqiao 1.8 Hydro 1.8 CRU projections Emirates Global Aluminium 9

11 Solid foundations Backed by sovereign funds of Abu Dhabi and Dubai 40-year legacy of successful operations: DUBAL commissioned in 1979 (35 years) EMAL commissioned in 2009 (5 years) Strong and loyal customer base worldwide: Approximately 90% of annual production is exported Over 350 customers in about 68 countries on 6 continents Emirates Global Aluminium 10

12 Stronger together (1) Enhanced flexibility of two massive casting operations Total capacity of 2.8 Mtpa Emirates Global Aluminium 11

13 Stronger together (2) Highest quality standards Premium purity metal produced efficiently, safely, with minimal environmental impact Best-in-class proprietary reduction cell technologies: Productivity Specific energy consumption Frequency and duration of AEs Emirates Global Aluminium 12

14 Operating responsibly (1) Committed to environmental protection: Investments in environmental control technologies and adoption of best practices Substantially reduced GHG and fluoride emissions Benchmark specific energy consumption levels Low overall energy consumption reduced consumption of fossil fuels Fuel-free energy generation (combined cycle power plants) DUBAL (Jebel Ali site) EMAL (Al Taweelah site) PFC emissions CO 2 eqt/t Al IAI avg (0.27) 2004/ / CO 2 eq/t Al IAI avg (0.27) IAI avg (0.24) Emirates Global Aluminium 13

15 Operating responsibly (2) Committed to safeguarding our people: 16.2 million work hours LTI free at EMAL in 2013 TRIFR of 2.75 at DUBAL, 4.19 at EMAL in 2013 DUBAL (Jebel Ali site) EMAL (Al Taweelah site) EMAL Project (Ph I & II) Recordable injuries Frequency rate (per million man-hours) LTIFR TRIFR Frequency rate (per million man-hours) LTIFR TRIFR Frequency rate (per million man-hours) Phase 1 LTIFR Phase 1 AIFR Phase 2 LTIFR Phase 2 AIFR Emirates Global Aluminium 14

16 Upstream assets Securing a portion of our alumina requirements Guinea Alumina Corporation ( GAC ) 100% owned Bauxite mine and alumina refinery project LTIFR of zero in 2013 Cameroon Alumina Limited ( CAL ) 45% stake Bauxite mine and alumina refinery project UAE alumina refinery project Comprehensive feasibility studies underway Emirates Global Aluminium 15

17 What does the future hold? Emirates Global Aluminium 16

18 Middle East is stronger than ever Primary aluminium sector Further capacity expansions announced, adding another 2.25 Mtpa Well-placed to cater for sustained increase in global demand Downstream aluminium industry Rapidly expanding Local infrastructure development Increasing demand in international markets Pro-active development of aluminium clusters Job creation opportunities Centres of excellence in research and development Emirates Global Aluminium 17

19 Thank you Emirates Global Aluminium 18