BATEMAN JV awarded Coega aluminium-smelter
project
BATEMAN, in 50/50 Joint Venture with Technip-Coflexip
of France, has been appointed by Pechiney of France as the general-construction
manager for the construction of their new PAS 2005 aluminium smelter
to be built at Coega, an industrial zone and harbour being developed
20 km north east of Port Elizabeth in the Eastern Cape Province of South
Africa.
The contract is worth US$600M and the new smelter
will use Pechiney’s new AP50 technology, permitting lower capital
expenditure, lower operating cost and lower emissions per unit of production
than the previous generation of plants. The total cost of the investment
for the project is estimated at US$1,6bn, excluding the working capital
and some of the owner’s costs.
The smelter will produce 460 000 t/yr of primary aluminium
and will be one of the anchor projects for the Coega Industrial Zone,
contributing immensely to the economic advancement of the local communities
in the province. About 800 jobs will be created in the smelter, with
between 4 500 and 6 000 people being employed during construction.
Within the framework of this major project, BATEMAN
and Technip-Coflexip will be in charge of the detailed engineering,
supply of equipment and materials and construction, including the erection
of Pechiney-supplied specialised equipment and systems, all on an engineering,
procurement and construction (EPC) basis.
Pechiney is currently seeking equity partners for
the project with the final decision to implement being made once the
financing arrangements have been completed. This will be a fast track
project in which construction is planned for the first half of 2004
with the first metal being produced in 2006.
A macro-economic study has revealed that the new smelter
will have a strong impact on the economy of the country and specifically
on the Eastern Cape. It is estimated that it will contribute around
R1,4bn annually to the fiscal income and boost South Africa’s gross
domestic product (GDP) by around 0,7 %, while creating up to 25 000
indirect and induced jobs. The aggregate annual household income in
the Eastern Cape should increase by around R3,2bn, of which some 23
% should go to the low-income group.
BATEMAN’s Boksburg campus will carry out the
project in partnership with Technip-Coflexip in Paris.
The smelter will occupy about 100 hectares in the
Coega IDZ and principally consist of a molten electrolysis circuit,
an anode manufacturing plant and a cast house. Pechiney will be introducing
its new AP50 processing technology, enabling it to reduce the investment
cost by almost 15 % compared with its earlier AP30 technology. In addition,
emissions of carbon dioxide will be lowered by 20 % compared with previous
Pechiney technologies, in which emissions were already 50 % less than
the international average for this type of process.
AP50 uses an average potline amperage of 500 kA. The
electrolytically-produced molten aluminium will be transported to the
cast house in the pots and cast into ingots. The smelter’s installed
power will be 850 MW and the process will work continuously 24 h/day
and 365 days/yr.
The raw alumina (Al203), sourced from international
markets, together with coke, will be conveyed to the site by conveyors
while liquid pitch and chemicals will be trucked in. The port facilities
will permit the loading of the finished aluminium.
The Coega site was not originally on Pechiney’s
shortlist for this new smelter. Several factors, however, contributed
to propelling Coega to the favoured position. First, the Coega IDZ provided
the required infrastructure for the smelter. Secondly, the proximity
of a deep water port to handle imports of raw materials and exports
was vital. Finally, the low cost of South African power will help make
this electricity intensive process competitive on world markets.
More information may be obtained from: base@batemanengineering.com
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