Transcript Operations Report

Mozal Aluminium Smelter
Smelter Location
Project Overview
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506,000 tpa primary aluminium
smelter constructed in two
phases
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Aluminium Pechiney AP30S
technology
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Approx. US$ 2bn total (historical)
funding
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US$ 1.1bn non-recourse project
funding, internationally
syndicated
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Shareholding BHP Billiton 47%,
Mitsubishi 25%, IDC 24%,
GOM 4%
Milestones
14 May 1998
18 June 2000
22 December 2000
21 June 2001
7 April 2003
20 August 2003
Phase 1 go-ahead
First metal cast
Last pot started potline 1
Phase 2 go-ahead
First metal potline 2
Last pot started potline 2
Phase 1:
31 months from go ahead to full commissioning,
>US$ 100m under budget
26 months from go ahead to full commissioning,
>US$ 195m under budget
Phase 2:
Two world records ~ in Mozambique
Phase 2 Achievements
• Benchmark construction safety record - LTIFR 1.07
• Zero reportable environmental incidents
• Construction workforce peaked at 5,033 - 70% Mozambican
• Excellent IR climate zero manhours lost in 14 million worked
• US$ 92m expended in the Mozambican economy
Achievements – Operations
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Highest pot efficiency for AP30 technology
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Benchmark anode effect rate of 0.04 per pot per day
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“Best-in-class” start up for potline 2 in terms of speed, efficiency
quality and safety
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Exceptional metal quality
Why Mozambique ?
The project fits within the economic transition in Mozambique which started
in the early 90’s
MOZAMBIQUE
MOZAL
OPTIMISE
CAHORA BASSA
MARKET FOR
ENERGY
INITIATE A
MEGA PROJECT
MOZAL
PROJECT
KICKSTART
MOZAMBIQUE
INDUSTRY
LINKAGES &
INDUSTRIAL PARK
FIGHT POVERTY
COMMUNITY
DEVELOPMENT
Economic
Growth
Job
Creation
Quality of Life
Economic Impact
• Mozal in 2002 = 53% of exports and 28% of imports
• 2002 real GDP growth 8% (Mozal 2.1%)
• Net positive impact on balance of payments around $100m at steady
state
• Mozambique export earnings US $220m to US $1bn
Local Business Participation
• Phase 2 project spend of US$92m
• Expanded operation spending US $3.5m per month on goods and
services in local economy
– 170 active local suppliers, 30 added in last 12 months
• Specific programs for Small and Medium Enterprise development
– Phase 2 construction (SMEELP) 28 packages
– Expanded operation (Mozlink) 12 contracts targeted
Social Contribution
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700 pupils
Grades 6 & 7
Water & electricity
Sports field
Program extended to
4 more schools
• Secondary school
being built
• Malaria incidence
dramatically reduced
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Mozal Community Development Trust established in 2001
Budget of $2m per annum
Focus in immediate vicinity of the smelter
Projects related to community infrastructure, health, small enterprise
development, education, sports and culture
• Projects screened for sustainability, poverty relief contribution and
addressing identified social impacts
• Partnering approach with NGO’s and agencies
Revisiting The Linkages
MOZAMBIQUE
MOZAL
OPTIMISE
CAHORA BASSA
MARKET FOR
ENERGY
INITIATE A
MEGA PROJECT
MOZAL
PROJECT
KICKSTART
MOZAMBIQUE
INDUSTRY
LINKAGES &
INDUSTRIAL PARK
FIGHT POVERTY
COMMUNITY
DEVELOPMENT
Economic
Growth
Job
Creation
Quality of Life
Conclusion
Together we make a difference
~ Thank you ~
www.mozal.com