Alcoa Look to Establish an Aluminium Smelter in Brunei

Alcoa and the Brunei Economic Development Board (BEDB) signed a memorandum of understanding (MOU) to enable more detailed studies into the feasibility of establishing a modern, gas-powered aluminum smelter in Brunei Darussalam. This 2008 MOU supersedes an original MOU signed in 2003 and a supplement to that MOU signed in 2005.

Under the terms of the 2008 agreement, Alcoa and the BEDB will embark on the first of two distinct phases of study. Phase One will determine the optimum scope and dimensions of the proposed facilities, an appropriate power-delivery strategy, the most desirable location for the facility and associated port and infrastructure, and opportunities for synergistic development.

Phase Two of the feasibility studies will commence at the completion of Phase One, if the parties agree that further, more detailed study is warranted. This second phase would include a full environmental and social impact assessment and basic engineering design work for the facility.

It is envisaged that the facility would have initial operating capacity of 360,000 metric tons per year (mtpy) with potential for an eventual 600,000 to 700,000 mtpy capacity.

The 2008 MOU will extend for 12 months from January 1, 2008. No date has been set for completion of Phase One or Phase Two studies.

In signing the MOU, Jon Erik Reinhardsen, Alcoa Vice President and President of Alcoa’s Global Primary Products Growth, Energy, Bauxite, and Africa business unit, said that Alcoa was delighted to be continuing in its relationship with the BEDB.

“We have been working with the BEDB since 2003 and admire the careful and diligent process that they are leading in order to assist the government in determining the feasibility of establishing a modern aluminum facility in Brunei Darussalam,” said Reinhardsen. “We are fully committed to working through this process with the BEDB and delivering studies that enable sound, sustainable decisions to be taken.”

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