Dubai Aluminium Company (Dubal)and India's Larsen & Toubro (L&T)signed on 17 September a joint venture (JV) agreement to undertake an integrated bauxite and alumina refinery project in the eastern Indian state of Orissa. The venture, in which Dubal's holds a 74 per cent stake and L&T 26 per cent, plans to invest $3,600 million in a two-phase programme.
Phase 1 of the project, focusing on the upstream works, calls for the development of a bauxite mine to supply a 1.4 million-tonne-a-year (t/y) alumina refinery, with a captive power plant, a port, a township and related facilities. Under the proposed schedule, financial close on the $1,100 million phase is due by the end of 2006, with construction starting in 2007 and project completion in the second half of 2009. About 1 million t/y of the produced alumina will be used by Dubal as feedstock for its Jebel Ali smelter. Phase 2 will add a further 1.5 million t/y of alumina capacity. It will also include the construction of an aluminium smelter, using Dubal's in-house smelting technology. The phase's costs are put at about $2,500 million. The project is the largest foreign direct investment in India by a UAE company.
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