Dubai Aluminium Company Limited (Dubal) has entered into an agreement with Vale to develop a greenfield alumina refinery in Brazil’s northern State of Pará.

The deal aims at securing the raw materials required to fuel Dubal’s future growth strategy, said a statement.

Dubal, the world’s largest modern aluminium smelter with a captive power station, will hold a 19 per cent equity stake in the joint venture company, Companhia de Alumina do Pará (CAP); Vale, the world’s second-largest metals and mining company, will hold 61 per cent and Hydro Aluminium 20 per cent. The transaction is subject to the fulfillment of certain customary conditions, the statement said.

CAP will be responsible for the implementation and operation of an alumina refinery located in Barcarena. The initial production capacity will be 1.86 million tonnes per year of alumina, through two lines, each with a capacity of 930,000 tonnes per year. Future capacity expansions at this refinery have the potential to reach up to 7.4 million tonnes per year, the statement said.

The start-up of the first phase is scheduled for the end of 2012. – TradeArabia News Service