Saturday, June 19, 2010

Alcoa (NYSE:AA) Starts Work on Saudi Industrial Complex

Billed ultimately as the largest fully integrated aluminum plant, Alcoa and partner, the Saudi Arabian Mining Co, have begun work on the Madden-Alcoa complex, breaking ground on Saturday.

Alcoa said in a statement, "Groundbreaking has now officially begun to pave the way for construction of the smelter and rolling mill that will serve the packaging and other industries."

Partner Maaden said that the goal is to become the "lowest-cost supplier of primary aluminum, alumina and aluminum products."

Included in the complex will be a alumina refinery, aluminum smelter and rolling mill at Ras Al-Zour, along with a bauxite mine at Ba'aitha.

Operations for the rolling mill and smelter are scheduled to start in 2013, with the mine and refinery projected to go onstream in 2014.

The cost of the joint venture between the two companies is $10 billion.

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