Saudi power project faces 10-month delay
Saudi Arabian Mining Company (Maaden) expects to begin production at the aluminium smelter it shares with US-based Alcoa in December.
The smelter is supposed to be supplied by the new 2,400-megawatt (MW) power plant which was expected to have started production by now.
"First production of electricity was supposed to be in October 2012... We are anticipating a 10-month delay," the head of SWCC Abdulrahman Mohammed al-Ibrahim said on Monday.
"To overcome this delay SWCC has taken the responsibility to provide power to the grid in excess of 450 MW to meet client demand," he said.
Saudi Arabia's Al Arrab Contracting Co and China's Sepco III Electric Power Construction Corp are building the power plant on the Gulf coast.
Neither contractor was available for comment.
Maaden said it expects the new power plant setback to delay full production capacity being reached at its new smelter nearby.
"The (power) project halt may cause shortage in the supply of electricity required by the Maaden Aluminum Company (MAC) at Ras Al Khair," the company said in a stock market statement.
"The impact on the project will lead to a slowdown in scheduled ramp up to reach the designed capacity of the aluminum smelter."
Other parts of the project, including a seawater desalination plant, remain on schedule, Ibrahim said.
The Ras Al Khair complex will be able to remove salt from over 1 million cubic metres of water a day, which will be distributed by SWCC.
Maaden has rights over 1,350 MW of the power plant's capacity and the other 1,050 MW has been allocated to Saudi Electricity Co (SEC).
Strength of UAE smelters highlighted at ARABAL 2012
Next articleLME aluminum should move between USD 1,980-2,010/mt on 29th Nov: SMM Morning Review
Grow with
AL Circle




























