A signing ceremony of the Kazakhstan Aluminum Smelter Project cooperation between China Nonferrous Metal Industry’s Foreign Engineering & Construction Co., Ltd. (hereinafter referred to as “NFC”) and Kazakhstan Aluminum Smelter Joint-Stock Company (hereinafter referred to as “KAS”) was held on 10 October 2005. According to the contract, NFC shall undertake construction and installation as well as equipment supply, with total contract value of USD 292.8 million (approximately amount to RMB 2.4 billion). Mr. Luo Tao, NFC’s Chairman and Mr. Ganauer, First Vice President of KAS attended the ceremony. Mr. Wang Hongqian, NFC’s President signed the contract on behalf of NFC.

Project Background
Kazakhstan is vast and sparsely populated, covering an area of 2.725 million square kilometers with 14.95 million populations. It is located in Middle Asia as the largest inland country, bordering China to the southeast. The friendship between China and Kazakhstan can be dated back to a long time ago. China and Kazakhstan share more than 1700 km boundary. Senior leaders of these two countries have been visiting each other frequently. Friendly and harmonious relations between people of two countries have paved a smooth road for the economic cooperation between the two countries.

Content of Construction
The signed Kazakhstan Aluminum Smelter Project is located in Pavlodar Province, northeast of Kazakhstan, surrounded by railways and main roads, which provide easy access.Construction Scale: 250 kt/a aluminum smelter to be completed in two phases. Phase I: 125 kt/a. NFC undertakes the project as an EPC contractor.

Key Technology: 320 kA prebaked pot technology
Project Division: the project can be divided into six sections based on functions.Aluminum Production Section: mainly includes alumina loading/unloading stations, substations and rectifier stations, potrooms, pots and PTM maintenance shop, alumina and aluminum fluoride material feeding system, fume scrubbing system and etc.
Casting Section: mainly includes cast house, ingot stacks and etc.
Anode Rodding Section: mainly includes anode rodding shop, bath and butt crushing, etc.
Green Anode Section: mainly includes raw material preparation, green anode production, auxiliary facilities for green anode production and etc.
Anode Baking Section: mainly includes anode baking and carbon block storage and conveying systems.
Auxiliary Section: mainly includes water supply and drainage, maintenance shop, warehouse, HTM boiler, ventilation, communication, lab and etc.
Project Progress
The project is to be partly put into operation in October 2007 and inaugurated in August 2008.Project Management Department was founded in October 2005, headed by Mr. Qin Junman, NFC’s Vice President as the project team leader, with equipment manager, site manager, commercial manager and design manager working together as a project management team. Meanwhile, staffs in charge of different sections and technical experts in related disciplines have started to work. Domestic design and technical specifications of equipment orders have almost been finished. Part of the designers has gone to the site for coordination with civil works, equipment installations and so on. Experts in different disciplines have gradually gone to the site for installation assistance. Preparations for equipment ordering by NFC and part of the equipment manufacturing are underway, among which some large equipment for special purpose, such as PTM, fume scrubbing device, anode rodding equipment, part of the equipment in 220kV switch stations have been included in the equipment supply agreement with European manufacturers. Equipment supervision has been started, with all the supervision staffs stationed in the smelter. At present equipment from all over the nation is now being delivered to Alashankou Port and ultimately to the site. Delivery plans and bidding work of some extra large equipment are underway. Pot installations are being pushed forward. Our construction staffs have stationed in the site and started to work.



Project Evaluation
The project has been drawing global attention within the alumina industry. It is the largest overseas nonferrous metal project NFC has ever undertaken and also the first overseas aluminum project Chinese enterprise has ever undertaken as an EPC contractor so far. Top management and staffs of NFC have paid great attention to the project progress. NFC’s Chairman Luo commented in the signing ceremony that with rich experience in overseas project contracting, NFC has achieved remarkable success in projects such as copper, aluminum, lead and zinc. It is a smart decision for KAS to opt for NFC as its partner. NFC is committed to paying back the owner’s trust by the shortest construction period and the highest quality, and will moreover facilitate the cooperation with it as the starting point for cooperation between two sides.Kazakhstan government has attached great importance to the project, for it is the first aluminum project in Kazakhstan. Kazakhstan’s President and Prime Minister have paid site visits in persons, speaking highly of the work did by NFC.