Abu Dhabi’s Mubadala Development Company has entered into a preliminary joint venture agreement to develop a $4bn aluminium smelter in Malaysia.
Mubadala and 1Malaysia plan to build the 750,000 tonnes a year (t/y) production site on the island of Borneo. The deal is contingent on regulatory approval and an agreement on the price for power, among other things.
1Malaysia also plan to invest a further $1.8bn in ancillary facilities, such as an aluminium rolling mill, a cable plant, a casting plant and 10 extrusion outfits without participation by Mubadala.
“Aluminium is a core sector. We are extremely happy with the success of that investment so we plan to invest further as opportunities arise,” says Waleed al-Muhairi, Mubadala’s chief operating officer.
The company’s venture into Malaysia follows the successful completion of the Emal smelter in Taweelah, Abu Dhabi. The smelter is jointly owned by Mubadala and Dubai Aluminium and has recently reached full production at 750,000 t/y.