EGA ramps up recovery at aluminum complex damaged in Iranian strikes

Emirates Global Aluminium said on Thursday it was restoring production sooner than expected at its Al Taweelah complex, which was damaged by Iranian missile strikes in March, although hot metal output may take up to a year to return to previous levels.

One of the world’s largest aluminum production sites, the complex suffered extensive damage when strikes hit the Khalifa Economic Zone Abu Dhabi on March 28, forcing an emergency shutdown.

EGA said two employees injured in the attack had left hospital.

The company said EGA must progressively restart each of the smelter’s 1,262 reduction cells to resume hot metal production.

Anode removal is complete across all cells, bath cleaning has been finished at around 90% of cells, and frozen metal has been cleared from more than 20%, the company said.

Since the first cell was restarted on May 26, 89 have now been brought back online, it added.

Cast metal production returning

The plant’s casthouse produced its first cast metal on May 4 and is remelting frozen metal recovered during the restoration alongside hot metal from restored cells.

The site’s recycling plant resumed cast metal production in early May, with full output expected within six months, subject to scrap availability.

First production is expected early in the third quarter at the Al Taweelah alumina refinery, with the pace of ramp-up dependent on bauxite supply chains.

EGA said hot metal output would not depend on the refinery reaching full production.

“All opportunities to accelerate the timeline further are being explored, and we will achieve our goal of emerging stronger than ever before,” CEO Abdulnasser Bin Kalban said in a statement.

EGA’s Jebel Ali site has continued operating at full capacity throughout the conflict. The company said it had secured sufficient raw material supplies for both Jebel Ali operations and the Al Taweelah restart, and is now selling more metal than Jebel Ali produces as it draws down inventories built up when outbound shipments were temporarily suspended.

The company did not disclose the financial impact of the damage or restoration costs.

Chief financial officer Pål Kildemo said stronger aluminum margins since the start of the year were helping offset losses from Al Taweelah’s reduced production, adding that the company’s financial position was very strong.

EGA is jointly owned by Abu Dhabi sovereign wealth fund Mubadala and the state company which holds Dubai’s most high-profile assets, Investment Corporation of Dubai.

(By Hadeel Al Sayegh; Editing by Kate Mayberry and Louise Heavens)