A few of the subjects to be covered are:• Construction safety in brown and greenfield plants• Electronic incident reporting system• Lifesaving rules development and implementation• Mobile equipment Safety & Initiatives• Health & Safety networking• Fluoride Emission management system

HEALTH, SAFETY & ENVIRONMENT

15-16 November 2016Doha Marriott Hotel, Qatar

ALUMINIUMIN THE GULF gac.ae

NEWSLETTER July 2016

GAC and Russian Aluminium Association signed a MOU to build relations based on the principle of mutual beneficial cooperation and common interest between the Gulf and Russian Aluminium producers. The signing took place at the St. Petersburg Economic Forum, where Mr. Dailami also attended a round table discussion on Aluminium Industry development and downstream investments.

GAC is pleased to announce that its next world renowned special high level annual dinner will be held in Bahrain on 22nd March, 2017. Alba is the lead sponsor of the event.

For more details, please contact Adele on adele@gac.ae

Gulf Aluminium Dinner 2017

GAC and Russian Aluminium Association signed MOU

OMAN’S SOHAR ALUMINIUM LAUNCHES ANNUAL SUSTAINABILITY REPORTSohar Aluminium (SA) recently unveiled the company’s seventh annual Sustainability Report. The SA Sustainability Report is certified and audited by the Global Reporting Initiative (GRI), an internationally recognized independent organization that has pioneered sustainability reporting, and offers a transparent review that documents the company’s progressive approach in applying best practices in its operational model.

EGA to launch construction on 12 Mtpa bauxite mine in GuineaEmirates Global Aluminium (EGA) will begin construction on a major bauxite mine in the Republic of Guinea, to secure supply of the high-quality raw material for its primary aluminium production facilities in the UAE and create a new, substantial revenue stream through significant exports to Asia.

The project will develop an initial 12 million tonnes per annum (Mtpa) bauxite mine, where the company holds a concession on more than 1 billion tonnes of bauxite.

Alba seeks US$750 million loan to fund line 6 projectAluminium Bahrain has approached banks for a $750 million loan towards the financing of its line 6 expansion project.

The line 6 project will boost Alba’s production capacity by 514,000 metric tons per annum when it comes online, making it the largest single-site smelter in the world. The

total capacity will be over 1.45 million tons when fully ramped up.

Production from the facility is expected to start in early 2019 and Alba is raising around $3 billion to help finance the scheme, through a mixture of loans from banks and export credit agencies and an international bond or sukuk issue.

Alba had initially targeted $3.5 billion, but this was cut back due to lower oil and commodity prices.

The project will also include the construction of a dedicated export terminal at Port Kamsar and upgrades to existing rail infrastructure for in-land logistics. Guinea holds the world’s largest and highest quality reserves of bauxite, the raw material used in the production of aluminium.

The mine is scheduled to begin production in 2018, with plans to export bauxite via Port Kamsar to the Middle East and Pacific markets.

What impact low aluminium price is having on GARMCO and downstream producers?

A low aluminium price is to some extent favorable as, all other things being equal, it improves the competitive advantage of aluminium against other materials such as PET, steel or copper. We see “aluminization” progressing in many industrial sectors which supports the demand for sheets, extruded products or cables. This being said, as companies downstream producers are metal converters: for most of the markets, we buy and sell LME as a pass-through and there is no material cost benefit for us when the price is low.

What are the challenges GARMCO are currently facing?

GARMCO is facing significant challenges resulting from increased utilities cost coinciding with a massive inflow of Chinese metal in the Middle East. We have an ambitious turn-around plan that included changes in our product mix, productivity-enhancement program and significant investments (new cast house, new finishing line). Our performances are improving but the journey ahead is still long.

What are the future prospects for aluminium downstream in the Gulf?

Future for aluminium downstream in the Gulf is bright as the population is increasing as well as infrastructures expenditures. Local/regional demand will grow, which is good but we will still have to export. The Gulf has always

INTERVIEW Jean-Baptiste LucasCEO – Gulf Aluminium Rolling Mill Co (GARMCO)

been a trading hub, so authorities must ensure there is a level-playfield with China and facilitate the access to nearby markets (such as India) through Free Trade Agreements. We can’t accept all imports when our exports are restricted by duties and tariffs barriers. As long as the trade conditions are fair we will see growth in tier-2 and 3 aluminium manufacturing.

Rolled Product production in the Gulf has increased over the recent years, what is the impact it has on the local, regional and international Market?

Rolled product production in the Gulf has increased indeed and it is good to observe a growing range of products (such as can stock) that can feed the regional consumers. It is important to ensure that the existing and future players can strive by avoiding unfair competition through discounted imports. GCC should not become the dumping ground of Chinese producers that cannot sell in Europe or in the US.

A tree never hits a car except in self defence

Accidents big or small, avoid them all

Accident hurts, safety doesn’t

Q1

Q2

Q3

Q4

Arms work best when attached to the body

Avoid the worst, put safety first

Before you do it, take time to think through it

Useful Safety Tips

Alba achieves 4 Million hours without Lost Time Injuries in the first half of 2016Alba finished the first half of 2016 by attaining its 4 Million Plant-wide Hours without Lost Time Injuries (LTIs) on Wednesday, June 29th, 2016.

This achievement comes in line with “Ramadan Safety Challenge” and in line with the CEO’s expectations for 2016 where departments are tasked with the objective of completing the Holy Month of Ramadan without any cases of Lost Time Injuries (LTIs), Heat Stress related-

injuries or accidents while meeting the production targets. Many awareness sessions and safety visits were conducted by Alba Management team in the presence of Alba Labour Union and Alba Trade Union members with special emphasis on healthy eating habits, road safety and attaining sufficient amount of sleep before reporting to duty.

PRIMARY ALUMINIUM PRODUCTION & DEMAND BY REGION - 2015

REGIONPRODUCTION DEMAND

2014 2015 2014 2015

CHINA 28200 31672 27744 29815

NORTH AMERICA 4568 4466 6380 6340

NORTH EUROPE 3596 3746 5905 5842

EAST EUROPE 4121 4197 2253 2148

JAPAN & ASIA 3066 3576 8464 8173

MIDDLE EAST 5261 5555 1353 1535

LATIN AMERICA 1542 1325 1937 1947

AFRICA 1746 1687 652 630

OCEANIA 2034 1978 331 298

WORLD 54134 58202 55019 56728

*Source: Harbour Aluminium Intelligence

The summer climate in the Gulf countries is hot and humid, creating a very challenging condition for workers in heavy industries including aluminium smelters or those working outdoors.

There are basic precautionary measures that need to be taken during the summer period to avoid heat stress.

What is heat stress?Human bodies naturally maintain temperatures at around 370C. When the body temperature rises above this range, the body will react to get rid of the excess heat. However, if the body continues to gain heat faster than it can get rid of, the body temperature increases and the person experiences heat stress. Health problems that result from heat stress are known as heat disorders. Heat disorders occur when the body consequently loses too much fluid and salt as sweat, leading to mental disorientation that increases chances of the person being involved in an accident.

• Heat stress can be caused by:a) Sunb) Physical activities in hot environmentc) Work around hot equipmentd) Work in a hot confined space

• Heat stress indications:a) Dizzinessb) Irregular heartbeatc) Muscle cramps

HEAT STRESS PREVENTIONWorking in Hot & Humid Climate of the Gulf

d) Headachee) Excessive weaknessf) Mental confusion or rapid shallow breathing

• Factors causing heat stress:a) The person’s physical conditionb) The weather (temperature, humidity)c) Time spent in the sund) Whether an individual is near a fan or there is breeze

in the aire) Type of clothing one wearsf) How strenuous the activity is g) Water intake

• Precautions:a) Drink cool water every 20 minutes even if you do not

feel thirstyb) Wear light-weight, loose-fitting, light-coloured clothingc) Work in the shade when possibled) Take rest breaks in cool shaded arease) For heavy work in hot areas, take turns with other

workers

• If someone is experiencing symptoms of heat stress:a) Call emergency services immediatelyb) Move the victim to the shadec) Wipe his skin with cool waterd) Loosen his clothese) Keep him in a well-ventilated area or in a cool place

22 - 24 November 2016Madinat Jumeirah Dubai, UAE

A few of the subjects to be covered are:• How to sustain operational awareness on molten metal explosions• Market Update Downstream & Smelter/Customer Interface• Potroom/Casthouse interface• Dross handling & treatment• Energy & Cost savings in Casthouses

CASTHOUSE18-19 October 2016Gulf Hotel, Bahrain

A few of the subjects to be covered are:• Impact of impurities and desulphurization on carbon anode

consumption in electrolysis cells• Safety• Baking kilns turnover and fast rebuild techniques• Bath processing to achieve good anode cover• Spent anode (butts) cooling practices and its impact on the environment

CARBON20-21 November 2016Sofitel Downtown Dubai, UAE

A few of the subjects to be covered are:• Construction safety in brown and greenfield plants• Electronic incident reporting system• Lifesaving rules development and implementation• Mobile equipment Safety & Initiatives• Health & Safety networking• Fluoride Emission management system

HEALTH, SAFETY & ENVIRONMENT

15-16 November 2016Doha Marriott Hotel, Qatar

A few of the subjects to be covered are:• Case study: Isolation of equipment (lockout/tag-out)• Heat Management & Prevention• Conversion of Gas baking to resistor preheating in reduction lines 1-3• Amperage Increase experience/challenges• Bath level variation in high kA potlines• Potential for molten metal explosion in the reduction areas

ELECTROLYSIS6-7 December 2016Radisson Blu Hotel, Sohar Oman

Seminars are now open to non-GAC members to attend. Registration fee of US$ 950 per person.For registration and further details, please contact Adele Carollissen: adele@gac.ae Tel: +971 4 4572051