– Middle East
According to a Nov. 2000 report by Gulf Business Online, “both Bahrain and
the UAE (United Arab Emirates) have been proactive in encouraging more
downstream industries as a means of adding more value to their latent
industrial sector. The Bahrain Development Bank (BDB), Bahrain’s Ministry
of Finance and National Economy, the Ministry of Oil and Industry and the
United Nations Industrial Development Organisation (UNIDO), have joined
hands to promote the budding aluminium industry in the Gulf region by
drafting product and financing strategy. A string of projects with joint
ventures and some buy-back arrangements are now in the pipeline.” (Roger
Jacobson, “Future looks bright for the GCC aluminium industrry,” Gulf
Business Online (Dubai), Nov. 9, 2000)
– Indonesia
In one of the most infamous boondoggles of bilateral aid, the Japanese
government loaned billions of dollars [CHECK] toward the development of the
225,000 ton Inalum smelter in North Sumatra, Indonesia. The Inalum smelter
is controlled by Nippon Asahan Aluminium Co., a consortium of 12 Japanese
companies (including Hitachi, Toshiba, and Mitsubishi) and the government’s
Overseas Cooperation Fund.
In 1992, the Los Angeles Times reported that ), “critics of the Asahan
project say it is a classic example of the kind of commercially oriented
foreign aid that serves the strategic interests of Japan, the donor, far
more than the recipients of official assistance. A potent symbol of skewed
priorities… is the nine-hole golf course carved out of the jungle in
Paritohan, built with aid money for Inalum employees and used most
enthusiastically by Japanese visitors and expatriate engineers. Profitable
or not at this end, Inalum provides a cheap and secure supply of aluminum
to the cartel of Japanese aluminum makers who invested in a majority stake
of the project, using low-interest Tokyo government financing.
“[A] pattern has emerged, analysts say: The bulk of the aid [to Asia] has
gone into large infrastructure projects that provide lucrative contracts
for Japanese construction firms and equipment supplier,” the report added.
(Los Angeles Times, June 9, 1992)
See energy section for more details on this project.
– Oman
In May 1998, the Omani government signed a $250 million loan from the
Import-Export Bank of Japan to build a new port which will serve
petrochemical plants and an aluminum smelter planned in Sohar, according to
Agence France Presse (June 1, 1998) Dubal is pondering the construction of
a new $2.5 billion, 480,000 ton smelter in Oman. (Rasha Owais, “Dubal
studies Oman smelter project,” Gulf News, April 10, 1999)
– Mozambique and Malawi
In the industry’s largest recent multilateral and bilateral bank financing
scheme, foreign institutions including the World Bank, European Investment
Bank, and national agencies have poured over $820 million into the new
Billiton/Mitsubishi smelter in Mozambique.
The smelter development is the largest-ever private investment project in
the country. Its projected cost of $1.3 billion almost equal’s Mozambique’s
Gross National Product. (Leon Pretorius, “Regional integration and
development in Southern Africa: A case study of the MOZAL Project and its
implications for workers,” International Labour Resource and Information
Group, March 2000)
The Mozal consortium — Billiton (47%), Mitsubishi (25%), South Africa’s
Industrial Development Corp. (24%), and the government of Mozambique (4%)
— completed the 250,000 ton per year smelter in 2000. About $820 million
of the $1.34 billion in project costs are being financed by the foreign
multilateral and bilateral agencies, including World Bank’s IFC ($120
million in loans) and IDA, the European Investment Bank ($46 million), and
national agencies in the U.K. (Commonwealth Development Corp.), Germany
(DEG) , South Africa (Credit Guarantee Insurance Corp.), and France ($26
million from the Caisse Francaise de Developpement). (American Metal
Market, May 19, 1998; Mozal press release, “International Financing for
Mozal smelter concluded,” Oct. 30, 1998, at www.mozal.com; International
Finance Corp., “Mozambique: Mozal Aluminum Company,” at www.ifc.org;
European Investment Bank, “EIB financing for regional power project in
Southern Africa,” press release, June 29, 1999)
The consortium is conducting a feasibility study for the possible doubling
of Mozal’s capacity. (Stephen Johnston, “Aluminium,” Mining Annual Review,
March 2000)
The possible gutting of Mulanje Mountain in Malawi to supply bauxite for
Mozal also has multilateral bank ties. In the mid-1990s, a study financed
by the African Development Bank has uncovered the reserves at Mulanje. The
study, according to African Economic Digest (June 10, 1996) study indicated
that the project could produce 540,000 tons of bauxite a year… 200,000 tons
of alumina and 100,000 tons of aluminum. About $880 million is needed to
develop the project.” (African Economic Digest, June 10, 1996).
(See Environment chapter for more details on Mulanje Mountain, the Human
Rights chapter for more on the worker rights at Mozal, and the Energy
chapter for more on the impact of Mozal’s energy consumption on the Zambezi
River delta)
– Venezuela
The IMF is encouraging the Venezuelan government to privatize its aluminum
industry. In 1998, IMF managing director Michel Camdessus met with
Venezualan officials and pushed “the privatization of companies in the
aluminum and electricity sector,” according to an IMF release. (IMF news
brief No. 98/13, May 19, 1998)
– Vietnam
The Vietnamese government is seeking support from France’s Overseas
Development Agency to devleop a bauxite mine/refinery/smelter operation in
the Tan Rai District of Lam Dong Province. The government hopes to have the
complex producing one million tons of bauxite and 200,000 tons of aluminum
per year by 2003. The complex would be owned by a joint venture of the
government and Pechiney. (“Bauxite Joint Venture Approved,” Dau Tu, April
22, 1999, www.mekongresearch.com/May1999energy.htm)
Pechiney is expected to complete a feasibility study on the $800 million
project in 2001. The Central Highlands (Taây Nguyeân) region of Vietnam
holds reserves of over 3.4 billion tons of bauxite. (“Industry Ministry has
seen the future, and it’s made of aluminium,” Vietnam News Agency, March
22, 2000 at vietnamnews.vnagency.com.vn/2000-03/21/Stories/14.htm;
www.vneconomy.com.vn/en/ext_economic/bilateral/fra001.htm)
Your article is an excellent showing of writing skills. You have captured readers with your compelling and interesting views. After reading this article i get to know that more about aluminum companies
I usually think of informative content as dull but necessary for learning. Interesting informational articles like this are rare. After reading this article i get to know more about aluminum companies