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Wednesday, August 19, 2009

The global map of investments is slowly but surely segregating between the have-been producers paralyzed by the excesses of Stockhholders Value Enhanc

Read here why the aluminum industry is not out of the woods despite better behavior of LME prices. In that context, this major metal producer manages to extend standstill on a humongous debt, allowing him to pursue investment projects; while this minor producer must divest its mining and alumina businesses to restructure debt and pursue its northern greenfield project now fully approved by local authorities, which also promote major renewable energy investments to better serve their aluminum industry against public opposition. This country is actually increasing its aluminum production by 25% (annual as of July) despite world slowdown, and we present here the detail of the ongoing investment projects in the country’s main smelter; and this country manages to borrow from China to get its ailing aluminum industry to stagger along, thanks to a minimal level of maintenance investments. This old aluminum producing country is confronted full blast with the contradiction between energy policy targets and environment protection, global warming targets, which would be pushing metal production costs sky-high. In the Middle East, this projected mega-greenfield will apparently be on time. This greenfield project will be a bit delayed but will move ahead, and this one will follow some two years later.

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Since 1991 ENAL has operated a Delphi Panel of Experts participating as Panelists, to forecast future investments. The ENAL Newsletter is possible thanks to this panel.