Aiming to secure the raw materials required to fuel the company’s future growth strategy, Dubai Aluminium Company Limited (“DUBAL”) – the world’s largest modern aluminium smelter with a captive power station – has entered into an agreement with Vale to develop a green-field alumina refinery in Brazil’s northern State of Pará. The transaction is subject to the fulfillment of certain customary conditions.

DUBAL will hold a 19% equity stake in the joint venture company, Companhia de Alumina do Pará (“CAP”); Vale, the world’s second-largest metals and mining company, will hold 61% and Hydro Aluminium 20%.

CAP will be responsible for the implementation and operation of an alumina refinery located in Barcarena. The initial production capacity will be 1.86 million tonnes per year of alumina, through two lines, each of 930,000 tonnes per year. Future capacity expansions at this refinery have the potential to reach up to 7.4 million tonnes per year. The start-up of the first phase is scheduled for the end of 2012.