Mideast on way to being leading aluminium maker

Muscat: The Middle East is well on its way to becoming the world's leading primary aluminium producer, according to Jacynthe Cote, chief executive of Rio Tinto Alcan.

Delivering a keynote address at the recent opening of the 15th Arab International Aluminium (Arabal) Conferfence, she said that the Middle East features prominently in global giants Rio Tinto Alcan's future plans.

"Among noteworthy brownfield opportunities is the proposed expansion of the state-of-the-art Sohar aluminium smelter here in Oman," she said.

"As has been reported, we are working with our Omani partner to explore how we could increase primary aluminium production in Oman and further contribute to socio-economic development and job creation," Cote added.

She pointed out the advantages for Middle East producers. "This region also has its advantages with respect to where aluminium is produced, such as ample supplies of competitively priced energy, ready capital and strategic proximity to key emerging markets throughout Asia, China and Europe."

She told a packed hall that in the past decade or so, Middle East producers have leveraged this competitive edge and set the Middle East well on its way to becoming one of the world's leading primary aluminium producers.

Robust growth

"A number of new greenfield projects have come on stream over the past year or so, making primary aluminium capacity close to 4 million tonnes, compared to 1.5 million tonnes in 2000," she said.

In his opening speech, Minister of Commerce and Industry Shaikh Sa'ad Bin Mohammad Al Sa'adi said: "There are currently five aluminium smelters in the Gulf region which alone represent over $30 billion [Dh110.1 billion] in capital and create 20,000 direct and 30,000 indirect jobs.

Cote also forecast that by 2015, the Middle East will be producing more than 5 million tonnes per year.

"To put things in perspective, that means the aluminium industry here will have grown at a robust compound annual rate of 9 per cent over the 2000-2015 period — far exceeding the 5 per cent annual growth rate of the global industry," she told delegates from more than 30 countries.

Talking about the challenges facing the Middle East industry, she pointed out the population demographics.

"The majority of the population in the Middle East-North Africa region is young. Between 40 per cent and 50 per cent are less than 20 years old."

"That youthful demographic is a terrific asset in many ways. But it also translates into demands for more quality job opportunities and better career prospects so as to harness the creative energy and drive of all those young people," the head honcho of global aluminium giant further said.

She also pointed out that Sohar Aluminium employs more than 1,000 people — more than 70 per cent of whom are Omani citizens — and is credited with creating an additional 2,500 jobs in the country.

Khalil Bin Abdullah Al Khonji, Oman Chamber of Commerce and Industry Chairman, hoped that Sohar Aluminium would take ‘big' initiatives to create direct as well as indirect jobs for Omani youth. "We have to have big initiatives in Sohar. When I say big I mean really big," Al Khonji said on the sidelines of the conference.

He added that the industries in Sohar must help the community and also help small and medium enterprises in the region. He advised big industries like Sohar Aluminium to procure their requirements from the local market.