The Qatalum project, a 50% joint venture with Qatar Petroleum and Hydro, to construct a new primary aluminium plant in Mesaieed Industrial City, Qatar, is progressing according to schedule. Today QP and Hydro have signed a key contract with the Canadian company SNC-Lavalin International Inc, for the construction of the main buildings and related project infrastructure.
Doha, Oslo (Nov. 23, 2006): The Qatalum project, a 50% joint venture with Qatar Petroleum and Hydro, to construct a new primary aluminium plant in Mesaieed Industrial City, Qatar, is progressing according to schedule. Today QP and Hydro have signed a key contract with the Canadian company SNC-Lavalin International Inc, for the construction of the main buildings and related project infrastructure.
The scope of the contract for the service areas and potroom building totals approximately USD 700 million. Once detailed engineering is completed, construction activities are scheduled to begin in November 2007. The project milestones include a final decision to proceed by the partners in July 2007, with first liquid metal production planned for fourth quarter 2009. The plant shall be in full production during second quarter of 2010.
Qatalum will be the largest primary aluminium plant ever built in one step. The project is very much in line with Qatar Petroleum's long-term growth strategy to diversify its energy portfolio, and is an important element in Hydro's strategy to reposition its upstream aluminium operations. Primary aluminium capacity will be 585,000 tonnes at full operation, which is 15,000 tonnes higher than initially planned. Future expansion plans can increase production up to 1.2 million tonnes per year. The total project includes the potrooms, anode production, casthouses, gas fired power plant and port facilities.
Including escalation from 2004 to 2006, currency effects and design changes, the revised capital investment estimate for the total Qatalum project is in the range of USD 4.5 billion. In 2004, cost estimates were approximately USD 3 billion.
Preparations for the Qatalum project have been ongoing since the partners entered into a first agreement in December 2004. It will be based on Hydro's captive technology for potroom and casthouse, with world-class environmental performance. When in operation, Qatalum will provide approximately 1,100 jobs in the local community, and will be a part of expanding Qatar's economic diversification. Qatalum will create new markets for suppliers and subcontractors in the Gulf region.
Qatalum operating costs will be among the lowest in the industry, positioning itself as a highly competitive smelter. Qatalum's dedicated electrical power generation plant will be supplied gas by Qatar Petroleum under a long-term gas contract.
Qatalum production capacity will help meet the strong global demand for primary aluminium products. The Qatalum casthouses will have the capacity to deliver all metal as value added products, serving customers in Europe, Asia and North-America.
Qatalum will draw upon Hydro's operational experience as a world leader in the aluminium sector, and will utilize technology improvements from Hydro's aluminium plant in Sunndal, Norway.
Contact in SNC-Lavalin Inc.
Michel Girard
Qatalum (SAPB) Procurement Manager
SNC-Lavalin Inc.
1140 De Maisonneuve
Montreal, Quebec
Canada
H3A-1M8
Tel: (514) 982-2750
Cell:(514) 757-9232
Fax: (514) 982-2793
Email: michel.girard@snclavalin.co
