UAE’s Emirates Global Aluminium PJSC (EGA) announced yesterday that it has executed a three-year alumina supply contract with Vietnam National Coal and Mineral Industries Corporation (Vinacomin).
The deal, which is EGA’s first such agreement with a Vietnamese firm, will obligate state-owned Vinacomin to supply EGA with 300 thousand metric tons of the aluminium precursor per year for the next three years.
In addition to being EGA’s first foray into the Vietnamese market, the agreement represents Vinacomin’s initial long-term contract garnered with a Mideastern firm.
Dang Thanh Hai, General Director of Vinacomin, expressed to local media the belief that this was the first of many deals both between the two firms and between the two countries as well.
EGA’s CEO Abdulla Kalban echoed Dang’s sentiments, describing the deal as a worthwhile first step in an ever-widening partnership between the two parties.
Based in Abu Dhabi, United Arab Emirates, Emirates Global Aluminium is an aluminium conglomerate created by the merger between Dubai Aluminium (DUBAL) and Emirates Aluminium (EMAL) in 2013. EGA had an estimated enterprise value of US$15 billion at the time the merger took place. The firm is owned equally by Mubadala Development Company of Abu Dhabi and Investment Corporation of Dubai. Emirates Global Aluminium holds interests in bauxite/alumina and primary aluminium smelting. EGA turned out a record 2.5 million metric tons of primary aluminium in 2016.
Vinacomin (Vietnamese: Tập đoàn công nghiệp Than và Khoáng sản Việt Nam (TKV)) is the product of a merger between Vietnam Coal Corporation (Vinacoal) and Vietnam Minerals Corporation in 1995. Primarily devoted to coal production, the Hanoi-based firm operates twenty mines, five of which produce over two million metric tons of coal per year, while the remaining fifteen bring between 100 thousand metric tons and 1 million metric tons of coal to the surface every year.