Growing stronger together

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					Growing stronger together
  Corporate review 2008/2009
Corporate profile                         02

Chairman’s message                        03

Review by the President & CEO             06

Production and corporate performance      14
    DUBAL’s core values                   14
    Providing                             16
	   	   •	Economic	contributions	         16
	   	   •	Quality	                        16
	   	   •	Employees	                      17
	   	   •	Community	involvement	          19

    Protecting                            24 	
	   	   •	Environment,	Health	&	Safety	   24

	   Advancing                             34 	
	   	   •	Operating	performance	          34
	   	   •	Technological	innovation	       34
        •	Market	penetration	             35

Our investments                           38
                                                 Scope of this review
DUBAL’s strategic vision                  40
                                                 This corporate review details DUBAL’s
Glossary                                  41     activities in 2008 and 2009. It follows
                                                 the prior biennial corporate review for
                                                 the years 2006 and 2007, published
                                                 in May 2008. The content complements
                                                 the second DUBAL Sustainability
                                                 Report for 2008/2009, compiled in
                                                 accordance with the Global Reporting
                                                 Initiative (GRI) and published in the
                                                 fourth quarter of 2010.

                                                 The two-year period under review
                                                 has seen remarkable growth at
                                                 DUBAL, despite the global economic
                                                 recession that began in 2008;
                                                 further development of our
                                                 upstream interests; and continued
                                                 efforts to improve productivity,
                                                 operating efficiency and profitability.
                                                 These developments are elaborated
                                                 on elsewhere in this publication.
1                                                                                                                     2

    Corporate profile

    Dubai Aluminium Company Limited       holding over 70 per cent of senior      in a dedicated 40-cell potline at
    (DUBAL) owns and operates one         management positions. Emphasis          our Jebel Ali smelter complex; and
    of the world’s largest aluminium      is placed on life-long learning, with   has been licensed to EMAL Phase I.
    smelters with a captive power         regular skills development and
    station. Built on a 480-hectare       training interventions facilitating     Entirely state-owned, DUBAL
    site in Jebel Ali, Dubai, the major   continued personal and corporate        is one of the largest non-oil
    facilities within this complex        growth.                                 contributors to the economy of
    comprise a 990,000 metric tonne                                               Dubai and is widely regarded as
    per annum primary aluminium           In addition to direct employment,       the industrial flagship of Dubai
    smelter, a 2,335 megawatt power       DUBAL generates thousands of            and the UAE. Having begun to
    station (at 35°C), a large carbon     indirect jobs in the local economy      tap metal at the Jebel Ali site
    plant, casting operations with a      through outsourcing as well as          in November 1979, our company
    capability of more than               local purchases of goods and            celebrated its 30th anniversary
    1,270,000 metric tonnes per           services. Ongoing investments           in 2009.
    annum, a 30 million imperial gallon   in community initiatives and
    per day water desalination plant,     corporate sponsorships
    laboratories, port and storage        contribute meaningfully to the
    facilities.                           socio-economic development of
                                          the city and Emirate of Dubai.
    Our Jebel Ali plant produces high
                                          DUBAL also holds a 50 per cent
    quality finished aluminum products
                                          share in Emirates Aluminium
    a year, in three main forms:
                                          Company Limited (EMAL), a
    foundry alloy for automotive
                                          greenfield smelter development
    applications; extrusion billet
                                          at Al Taweelah, Abu Dhabi.
    for construction, industrial and
                                          Commissioning of EMAL Phase I
    transportation purposes; billets
                                          (comprising a 756-cell smelter
    for forging purposes in automotive
                                          plus associated power generation,
    industries; and high purity
                                          reduction material and casting
    aluminium for the electronics         infrastructure) began in
    and aerospace industries.             December 2009. Investments
    Our full production capacity is       are also being made to secure
    made to order and shipped to          a portion of DUBAL’s alumina
    more than 250 valued customers        requirements.
    in about 45 countries worldwide,
    predominantly in the Far East,        Driven by a quest for continuous
    Europe, the ASEAN region, the         improvement and ongoing
    MENA region, and North America.       innovation, our company has
                                          invested substantial resources
    DUBAL, as an industrial enterprise,   over the past 25 years in
    holds ISO 9001, ISO/TS 16949,         developing advanced reduction
    ISO/IEC 27001, ISO/IEC 20000,         cell technologies that not only
    ISO 14001 and OSHAS 18001             improve productivity but also
    certification; and has twice won      reduce our operations’ impact
    the Dubai Quality Award in the        on the environment through
    Production and Manufacturing          improved energy efficiency and
    sector (1996 and 2000).               minimized emission levels. This has
    Approximately 4,000 skilled           culminated most recently in our
    operators, tradesmen,                 proprietary DUBAL DX Reduction
    administrative staff, technicians,    Technology — a UAE flagship
    professionals and managers are        technology that operates at
    employed at our Jebel Ali site.       370 kilo-Amperes (kA) and
    At the end of 2009, some              performs among the best
    22 per cent of the total workforce    reduction technologies available.
    was drawn from the local              Developed in 2006, DX Reduction
    population, with UAE Nationals        Technology has been implemented

Chairman’s message

Triumphant, despite
the challenges
Our vision for DUBAL, formulated in 2005, is to
become one of the world’s top five aluminium
producers by 2015. Today, with a capacity of
almost one million metric tonnes per year, DUBAL
is the largest primary aluminium producer in the
Middle East. Our share of the world aluminium
market, by production capacity, is 2.6 per cent.

The two years covered by this            DUBAL in 2009 produced a record          a joint venture alumina refinery
corporate review ranked among the        1,010,000 metric tonnes of cast metal;   project in Brazil, along with VALE of
most challenging for businesses          and sold 1,001,257 metric tonnes         Brazil and Norsk Hydro of Norway in
worldwide, having borne witness to       of product (up 8.3 per cent on the       April 2009. Moreover, we continued
the onset mid-2008 of the deepest        924,308 metric tonnes sold in 2008).     funding our active upstream
global economic recession in recent                                               projects in Guinea and Cameroon
history. As a global player, DUBAL       Importantly, DUBAL maintained            throughout the recessionary period.
was not immune to these dynamics.        its market position despite the
However, as one of the world’s           financial crisis: the solid              In pursuit of the DUBAL vision, we
lowest-cost aluminium producers,         relationships built with our             remain dedicated to almost
DUBAL was well-placed to weather         customers over the years enabled         doubling the volume of metal
the downturn. Accordingly, we            us to retain the business of our         marketed by our company by 2011.
maintained DUBAL’s production            existing 250-strong customer base
                                                                                  This significant milestone will be
levels at maximum capacity and did       and to continue selling our metal
                                                                                  exceeded in 2010. The commissioning
not retrench employees. Increased        into 44 countries worldwide.
                                                                                  of Emirates Aluminium Company
emphasis was, nevertheless, placed       At the same time, our long-standing
                                                                                  Limited (EMAL) Phase I, of which
on controlling costs and improving       relationships with suppliers
                                                                                  DUBAL is a 50 per cent shareholder,
the efficiency of our operations         ensured the continued delivery
                                                                                  began in December 2009 and
in terms of a year-long campaign         of good quality materials plus
                                                                                  will be running at full capacity
which focused on reducing costs,         constructive interaction between
generating and conserving cash —         the technical teams of both parties,     (740,000 metric tonnes per annum)
therefore minimizing liquidity, credit   while payments were consistently         by the end of 2010.
and financial risk.                      honoured. Employee relationships
                                         also strengthened, as confirmed by       With these milestones in sight, we
                                                                                  have virtual certainty of producing     Building on our existing track       development of people and society,
Conscious efforts were also              improved satisfaction levels revealed
                                                                                  2.5 million metric tonnes by 2015,      record, our strong and highly        provide a solid foundation for this
made to identify and exploit new         through our employee survey.
                                                                                  thereby achieving our vision. We have   experienced management team          quest; while our determination
opportunities in the market for
our products. By changing our            Upstream investment opportunities        therefore begun formulating a new       looks forward with confidence        to protect the environment and
product mix to suit the changing         were also captured in the midst          vision for DUBAL, whereby we aim        to fulfilling this new goal. Our     safeguard the well-being of our       H	H	Sheikh	Hamdan	Bin	Rashid	
needs of customers, our full             of the economic downturn. For            “to be the best aluminium company       unwavering commitment to good        employees and the community           Al	Maktoum
production capacity was required         example, DUBAL purchased a stake         in production, markets, people and      corporate governance, together       will ensure that we do so in a        Deputy Ruler of Dubai, UAE Minister
to fulfil the orders. Indeed,            in Companhia de Alumina do Pará,         results” by 2020.                       with continuing investments in the   sustainable way.                      of Finance, and Chairman of DUBAL

Review by the President & CEO

Achieving excellence
through partnerships
The coincidence of DUBAL’s 30th anniversary, in
November 2009, with the gradual recovery of the
aluminium industry following the severe impacts of
the global economic recession provided the valuable
opportunity to consider and appreciate the factors
that have enabled our company’s sustained growth
over the years.

                                       inter-dependent on that of all our      in productivity, the formation of
                                       stakeholders. It is with this in mind   joint ventures to develop greenfield
                                       that we have built our business         smelters using DUBAL’s proprietary
                                       on excellence-based partnerships        DX Reduction Technology and
                                       with each of our key stakeholder        world-class smelter management
                                       audiences — who we have identified      expertise, and the implementation
                                       as our shareholders, the government     of partnerships to secure adequate
                                       of Dubai, customers, employees,         supply of strategic raw materials
                                       suppliers, partners and our             such as alumina.
                                       community. (Detailed descriptions of
                                       each stakeholder group, the forums      These developments will help
                                       and communication media used            position the DUBAL brand among
                                       to engage and communicate with          the best aluminium producers
                                       these diverse audiences, and their      across the globe.
                                       relative contributions to DUBAL’s
                                       social sustainability are provided
                                                                               Global industry overview
We have identified several secrets     in the DUBAL Sustainability Report
behind our success, namely a           2008/2009.) By working together,
                                                                               The 2008/2009 global economic
                                       we have achieved more.
combination of visionary leadership                                            crisis, which began mid-2008,
and strong management; operational                                             affected every country and every
                                       Importantly, our vision is supported
excellence and a proven business                                               sector. In the aluminium industry, a
                                       by several core goals, towards which
model; motivated and skilled people;                                           very sharp drop in daily demand for
                                       we continually strive — including
very good relationships with all our                                           aluminium was experienced across
                                       being the supplier of choice; the
stakeholders; tried-and-tested         lowest-cost producer of primary         the world, resulting in substantial
home-grown technology; a strong        aluminium; a substantial contributor    oversupply in the marketplace.
global customer base coupled with      to the GDP of the UAE; being the        The coincident 60 per cent decline
a well-established brand name; and     employer of choice, especially for      in the aluminium price, set by the
a positive track record in terms of    UAE Nationals; and maintaining our      London Metal Exchange (LME) in the
growth and profitability.              focus on protecting the environment     first six-months of the recession
                                       as well as the health and safety of     affected all primary aluminium
Of these, the single most              our people and the community. We        smelters across the world,
important and unifying ingredient      have also implemented an aggressive     prompting some operations to
is DUBAL’s acknowledgement             growth strategy that combines           close all or part of their production
that our company’s success is          organic expansions, improvements        capacity in unprofitable plants.
07                                                                                                                                                                                                                                       08

Despite the rate and volume of           Several differentiating features set   160,000 metric tonnes (1 per cent       Credit Review, Project Tender,          Protecting people and
the shut-downs, production               DUBAL apart, which equipped us         of world production). Driven by         Purchasing Tender, Mechanical           the planet
declines lagged behind the               not only to survive this challenging   organic expansions, this rose to        Engineering, Smelter Projects
reduced market demand: annualized        period but rather to thrive in         1.8 million metric tonnes by            Steering, Information Technology (IT)   At the core of DUBAL’s corporate
supply volumes exceeded the              it. These include our premium          2007 (about 5 per cent of the           Governance, Electrical Engineering,     culture is a commitment to “Zero
annualized market demand by              quality, high purity products;         38 million metric tonnes produced       and Strategic Materials. A new          Harm to People and the Environment”,
6.2 million metric tonnes in             dedication to service excellence and   worldwide). Following the               Technology Committee was                which is shared by both our regular
January 2009. The imbalance in the       technology improvements; ongoing       establishment of new smelters in        established in December 2009, under     employees and the people employed
market, evident in the increasing        focus on succession planning;          the Middle East over the past two       my chairmanship, to address any         by the contractors engaged by
inventory levels, contributed to         and commitment to continuous           years (with expansions and other        activity, process or structure that     DUBAL for project and engineering
further subdued prices. Fortunately,     improvement so as to ensure the        new developments on the cards),         contributes to the development,         work, who also work on the site.
the LME prices bottomed-out in           sustainability of our business for     the region is positioned to play an     deployment, protection, marketing
the first quarter of 2009 and began                                             even greater role in the primary        and sale of DUBAL’s different           Several milestones were reached
                                         future generations. We also worked
recovering in the latter half of 2009.                                                                                                                          during the review period. For
                                         closely with our suppliers and our     aluminium producer segment:             technologies in line with the
                                                                                                                                                                example, on the safety front, our
                                         customers to find creative solutions   current estimates suggest that the      highest international technical,
For DUBAL, the global recession                                                                                                                                 Jebel Ali operations achieved a
                                         that would contribute to their own     Middle East will produce 10 million     environmental and safety standards,
provided the opportunity to                                                                                                                                     record 10.3 million man-hours
                                         sustainability. The combination of     metric tonnes of the metal by the       taking our corporate vision into        without a lost time injury on 27 May
demonstrate the versatility,             these attributes engendered loyalty    end of this decade.                     consideration.                          2009; and the total recordable injury
innovation, professionalism and          from all our stakeholders and mutual                                                                                   frequency rate (per million man-
market understanding of our
                                         growth. Together, we shone.            Corporate governance                    The day-to-day operations of            hours) declined to 4.27 in 2009 —
company. When the market                                                                                                our company are governed and            down from 13.12 in 2004. In terms of
dynamics began to change from the
                                         The year-long “Triple C” campaign      As a corporate entity, DUBAL            controlled by formalised policies,      both safety and occupational health,
end of 2008 onwards, we adapted                                                                                                                                 2009 was the third consecutive
                                         — which focused on reducing costs,     believes that excellence in             procedures, systems, levels of
our product mix to suit the new                                                                                                                                 year in which no lost days due
                                         generating and conserving cash —       governance and business                 authority and responsibility as
market demands. Responding to                                                                                                                                   to heat-related illnesses were
                                         placed DUBAL on a strong footing       performance go hand-in-hand             approved by the Board. These
the impact of the downturn on                                                                                                                                   recorded. Environmentally-speaking,
                                         throughout the recessionary period     and that, as one of the world’s         internal control processes are
the construction and automobile                                                                                                                                 DUBAL’s endeavours to reduce
                                         and gave us a solid foundation for     leading companies, we commit to         designed to prevent and mitigate
industries, both major consumers                                                                                                                                energy consumption and harmful
                                         future economic prosperity.            the highest ethical and governance      risks as part of an overall risk
of our aluminium products, we                                                                                                                                   emissions (particularly fluoride and
                                                                                standards in all our dealings. This     assessment and risk management
successfully explored new markets                                                                                                                               perfluorocarbons) are producing
                                         These successes provided a             is consistent with our values and       function. A comprehensive risk                                                  Enhancing operational
and opportunities, secured new                                                                                                                                  results ahead of the targets set
                                         fitting backdrop for marking the       fundamental to our image as a good      management framework is in
business, and set new production                                                                                                                                by the International Aluminium          efficiency through
                                         30-year anniversary of the             corporate citizen. Emphasis is placed   place, which identifies risks and       Institute (IAI).
and sales records in 2009.                                                                                                                                                                              technology and innovation
                                         November 1979 start-up of the          on maintaining exemplary ethical        quantifies their impact. This risk
This was a remarkable                    first reduction cell at DUBAL. Over    standards, personal and corporate       management framework defines            The volume of most harmful              Since inception, DUBAL’s
accomplishment, given the                the three decades, our company         integrity, and respect for others.      the criteria for recognizing risk       emissions from our operations           management has been committed
prolonged power outage incident          has evolved from a small regional                                              and also sets the acceptable            has also continued to decline:          to continuous innovation in the
that occurred on 2 November              operator into a world-class global     The governance structure within         level of risk of the company. A risk    oxides of nitrogen released to          aluminium smelting process so as
2008, affecting a sizeable               player renowned for manufacturing      DUBAL, detailed more fully in the       management strategy, comprising         the atmosphere dropped by
                                                                                                                                                                                                        to produce the world’s best quality
portion of our manufacturing             premium quality, high purity           DUBAL Sustainability Report             various actions to mitigate and         27 per cent between 2007 and
                                                                                                                                                                                                        aluminium products, made to order
facilities. Reflecting DUBAL’s           aluminium products. Today, DUBAL       2008/2009, comprises our Board          transfer high-impact risks, ensures     2009; and the metric tonnage of
                                                                                                                                                                                                        and delivered direct to customers,
                                         is the largest primary aluminium       of Directors, President & Chief         that only residual impacts are to be    sulphur dioxide emitted per metric
philosophy of safety first,                                                                                                                                                                             while achieving maximum operating
                                         producer in the Middle East.           Executive Officer, and Executive        absorbed as part of normal course       tonne of aluminium produced
no-one was injured, and the                                                                                                                                                                             efficiencies. Substantial resources
                                         Our growth over the years has,         Management Committee. Three             of operations.                          decreased measurably. However,
impact of the incident on our                                                                                                                                                                           have been invested over the years
                                         however, not been achieved in          specialised committees facilitate                                               the volumes of hydrogen fluoride
company’s 2008 production volumes                                                                                                                                                                       in developing advanced electrolytic
                                                                                                                                                                and perfluorocarbon emitted
was modest. Instead, the immediate       isolation but through solid,           the role of the Board, namely the       Plans have been established                                                     reduction cell technologies that
                                                                                                                                                                increased in 2009, compared to
implementation of a re-build             long-standing, partnership-type,       Finance Committee, Technical            to address emergencies and                                                      not only increase productivity but
                                                                                                                                                                prior years, arising mostly from
project resulted in the complete         excellence-centred relationships       Committee and Audit Committee.          contingencies, such as a supply                                                 also reduce the impact of smelter
                                                                                                                                                                the re-commissioning of potlines
restoration of the normalisation of      with all our stakeholders.             Several management committees           contingency plan for critical raw       following the power outage incident     operations on the environment
our potroom operations by                                                       are in place within the office of the   materials; and an IT Continuity plan.   in November 2008. With the plant        through improved energy efficiency
end-February 2009. The support we        In 1980, the first year of             President & CEO, each with a clear      A full Crisis/Emergency & Business      fully re-commissioned and operating     and minimised emission levels.
received throughout the restoration      DUBAL’s commercial operation,          mandate governing its functions,        Continuity Management System            stably, the downward trend in
period from customers and                the annual primary aluminium           notably Hedging, Governance &           has been implemented, as                the latter two emissions has now        This has culminated most recently
suppliers alike was amazing.             production in the Middle East was      Internal Controls, Investment,          detailed on page 31.                    resumed.                                in our proven, in-house developed

DX Reduction Technology — a UAE           at DUBAL has allowed sharing of         Entrenching values-driven
flagship technology that has been         electronic documentation across         behaviour
implemented in a dedicated                the company. In addition, all
40-cell potline at our Jebel Ali          outbound logistics and inventory        A comprehensive exercise, initiated
smelter complex. Operating stably         management processes are                in late-2005, has led to the full
at higher amperages (approximately        managed from a single data source,      development of the DUBAL brand.
370 kA), DX Reduction Technology          through SAP.
                                                                                  The re-positioned, more evolved
cells offer increased productivity,
                                                                                  brand is being implemented
improved energy efficiency and            The SAP Business Suite provides
                                                                                  throughout our organization in such
reduced environmental impact              DUBAL with a complete business
                                                                                  a way that every point of contact
compared to lower amperage                solution that will help us meet the
                                                                                  between the company, suppliers,
technologies, as detailed on pages        company’s corporate targets while
34 and 35. DUBAL DX Reduction             maintaining DUBAL’s reputation          customers and business associates
Technology has also been licensed         for quality products and excellent      clearly demonstrates DUBAL’s
to and installed in the 756 cells         customer service                        ethics, values and excellence.
constituting EMAL Phase I.
                                          The IT department has also helped       The brand strategy, vision and
The first in a two-phase project          enhance operational efficiency          values – designed to support the
to implement a gate-to-gate               through a successful upgrade            company’s corporate strategic goal
enterprise resource planning              of the Pot Control System for           for 2015 – have also been translated
platform to enable efficiencies           DX Reduction Cell technology. This      into a new visual system that better
was launched at DUBAL in                  includes the in-house development       communicates DUBAL’s personality
October 2006. After a record-             of the Intranet POTS (or iPOTS)         attributes. Some 925 supervisory
breaking nine months of intensive         web-based monitoring system,            level employees at DUBAL received
programming and employee training,        which was launched on 1 January         brand training during 2008, in
the system went live on 1 June            2008 along with an upgrade of the       preparation for the unveiling of
2007. Designed specifically for           IT infrastructure in the smelter and    the re-positioned brand in
the manufacturing industry, the           deployment of proprietary software      early-February 2009.
application will not only automate        support to enable production of
and manage DUBAL’s business               the highest high-purity aluminium.      During 2008, the existing DUBAL
processes, but also assist in financial   A web-based J2EE solution, iPOTS        Behavioural Safety Programme was
operations and supply chain and           offers better graphic user              enhanced through the launch of a
production planning, In doing so, it      interface (GUI) representation of       pilot phase of Tamahal (derived from
will help fulfil DUBAL’s aim to           data while a user-friendly drill-down   Arabic, meaning ‘slow down), which
become a demand-driven resources          menu of functions gives easy access     encourages employees to slow down
company and to move its entire            to real-time information. An online     their pace of work to allow time to
enterprise-wide processes to a            Customer Order Tracking (COT)
                                                                                  observe whether or not everything
more customer-centric approach,           system has also been introduced,
                                                                                  is safe before they proceed.
whilst reducing costs and improving       via the DUBAL website.
                                                                                  A “no-name”, “no-blame” system,
                                                                                  Tamahal aims to identify unsafe
                                          In addition, the Power Management
                                                                                  behaviour through observation
During the second phase of SAP            System, which is used to monitor
                                          the power & desalination plant, has     with the primary objective of giving
implementation, DUBAL continued
to stabilise and expand the usage         been upgraded to avoid software/        the observed person immediate
of the system. Another milestone          hardware obsolescence and to            feedback on their behaviour, as well
was marked with the activation            provide sufficient capacity to          as taking appropriate action where
of additional modules – such as           support current & future plant          required. The observations, all of
Environment, Health and Safety (EHS)      expansions. Smelter Analytics,          which are recorded, provide leading
and Quality Assurance (QA), which         another in-house developed              indicators and actionable knowledge
went live on 1 March 2008. Employee       application, was launched in March      (unlike incidents and hazard reports).
Self Services and Managers                2008. This software has added           The Tamahal programme is detailed
Self Services (ESS & MSS) were            an analytical layer to the existing     in the DUBAL Sustainability Report
also successfully implemented.            Potroom information so as to enable     2008/2009; as well as on page 31 of
The implementation of SAP DMS             informed decision-making.               this review.
11                                                                                                                                                                                                                                          12

Benchmarking against the               such as Seven Quality Control (QC)      2008                                      • Power Generation and Water               Cameroon Alumina Limited as a
world’s best                           Tools and the Lean Six Sigma (LSS)                                                  Solutions Transmission &                 vehicle to exploit an estimated
                                       approach. By enhancing the              • The Mohammed Bin Rashid                   Distribution Project of the Year         500 million metric tonnes bauxite
DUBAL achieved re-certification        knowledge-base within our company,        Al Maktoum (MRM) Manufacturing            Award 2009.                              reserve in Cameroon.
                                       we have strengthened our data-            Award for 2008.
to the ISO 9001:2000 and
                                       driven decision-making capabilities                                               • Oracle Business Intelligence/          • In April 2009, DUBAL purchased
ISO 14001:2004 standards in                                                    • 2008 Middle East Business
                                       at all levels in the organization.                                                  Enterprise Performance                   a stake in Companhia de Alumina
May 2008. The company also                                                       Achievement Award (MEBA) -                Management (“BI/EPM”)                    do Pará, a joint venture alumina
successfully upgraded its Quality                                                Businessman of the Year to
                                       The Corporate Strategy                                                              Innovation Award 2009.                   refinery project in Brazil known as
Management Systems and                                                           Abdulla Jassim Kalban, President                                                   the CAP project, along with VALE
Occupational Health & Safety           Performance Review system has             & CEO of DUBAL.                         • Best Exporter in the 2009                of Brazil and Norsk Hydro
standard to ISO 9001:2008 and          been fully implemented at DUBAL
                                                                                                                           Middle East Logistics Awards.            of Norway.
OSHAS 18001:2007. Re-certification     using the Balanced Scorecard            • Idea of the Year and Productivity
to ISO/TS 16949:2009 and               (BSC) format. This provides an            Awards in the 2008 Ideas.Arabia
                                                                                                                         • Health and Safety Trophy in the        Additional detail on these projects is
ISO/IEC 27001:2005 was completed       equitable platform for motivating         competition.
                                                                                                                           2009 Ideas.UK competition.             provided on page 38.
in 2009. Our company also              performance aligned with DUBAL’s
                                                                               • International Award Category in
obtained certification to              corporate goals and appraisal                                                     • Top 10 CIO Strategies Award for        Sustainable development
                                                                                 the 2008 Ideas.UK Competition.
ISO/IEC 20000-1:2005 recently          of progress against the same,                                                       Middle East 2009.
for Information Technology             while ensuring that the corporate       • Idea of the Year, Overall Idea                                                   DUBAL recognizes that a holistic
Service Management (ITSM).             objectives are cascaded down to           of the Year and Best Program            Building the business                    approach to our business strategy,
                                       all levels of the organization. The       Administrator Awards in the                                                      while seeking to realise value for
Our Business Excellence (BE)           BSC system facilitates tracking of        2008 USA Employee Involvement           Significant progress has been made       all our stakeholders through a
programme is actively promoted.        current results in terms of               Association (EIA) Competition.          in developing the EMAL greenfield        sustainable business philosophy,
This company-wide umbrella             financial performance while helping                                               aluminium smelter at Al Taweelah         is critical for the company’s
programme for all in-house             to achieve future growth by             • ACN Arab Technology Awards              in Abu Dhabi. The EMAL Project has       long-term success. Accordingly, we
improvement initiatives includes                                                 for the Best “Manufacturing             been designed to be the largest          are committed to ensuring that
                                       measuring performance in terms of
team-based projects/activities                                                   and Construction Sector                 aluminium smelter in the world           the business remains viable and
                                       financial results, customer focus,
and DUBAL’s Suggestion                                                           Implementation” in 2008 (for            and will be built in two Phases,         contributes long-term benefits to
                                       internal processes, and people            the implementation of Smelter
Scheme. The 28th year of the                                                                                             with an ultimate capacity of             society through the consideration
                                       learning and growth.                      Analytics).
Suggestion Scheme, celebrated in                                                                                         1.5 million tonnes per annum. Phase I    of social, environmental, and
March 2009, brought the cumulative                                                                                       construction is well advanced,           economic aspects in all that we do.      DUBAL’s second Sustainability
                                       Our BE programme, being the             • Excellence in Information
savings achieved since 1982 to                                                                                           including a 2,000 megawatt power                                                  Report, for the period 2008/2009,
                                       foundation of DUBAL’s continuous          Integrity Award 2008 (For-
AED85.6 million (US$23.2 million)                                                                                        plant. Start-up of the 756-cell EMAL     Department managers have                 will be released in 2010 and may
                                       improvement initiatives, is aligned       Profit category) – by Information
from a total of 87,199 awarded                                                                                           Phase I began in December 2009           ultimate accountability for ensuring     be read in conjunction with this
                                       to our company’s BSC — which, in          Integrity Coalition, an international
suggestions. New records were set                                                                                        — four months ahead of schedule.         our contribution to sustainable          review. Both publications are an
                                       turn, encourages improvements             organization based in the USA.
in 2008, as detailed under “Quality”                                                                                     EMAL has deployed advanced DUBAL         development, thereby supporting          expression of our accountability
                                       in four perspectives (Financial,                                                  DX Reduction Technology and will         progress towards our stated
on page 16. As indicated under                                                 • CIO 20 Middle East 2008.                                                                                                  and transparency, as well as being
                                       Customers & Business Partners,                                                    benefit from other operational           sustainability objectives, namely:
“Awards and Recognition” below,                                                                                                                                                                            an essential aspect of our
                                       Internal Processes, and Learning        • IT Governance Assurance Forum           synergies with DUBAL.                                                             stakeholder engagement activities.
the DUBAL Suggestion Scheme
                                       & Growth). These initiatives,             (ITGAF) Award for IT Governance                                                  • Aspiring to cause no harm to
received international accolades                                                                                                                                                                           Likewise, both publications are
                                       together, have yielded many               in 2008.                                In addition to EMAL, the company           people, the environment and the
during the review period, through                                                                                                                                                                          valuable management tools, as
                                       significant improvements in our                                                   has been reviewing, together with          local community;
Ideas.Arabia, Ideas.UK, and the USA                                                                                                                                                                        they contain a collation of
                                       company’s safety and environmental      • Major Energy Award – 1st place,         partners, two other aluminium
Employee Involvement Association.                                                                                                                                                                          performance data and statements
                                       performance, quality, as well as          Major Energy Award – Runner-up,         projects in the MENA region.             • Effective governance and risk
                                                                                                                                                                                                           of key issues and related
                                                                                 Minor Energy Award – Runner-up,                                                    management processes;
Over the past two years, we have       operational effectiveness/ efficiency                                                                                                                               management approaches.
                                                                                 and Energy Engineer Award –             Further progress is also being made
consciously re-engineered our          and reliability.
                                                                                 Runner-up in the 2008 Emirates          to secure a portion of DUBAL’s           • Recognising the need to be socially
team-based programmes using                                                      Energy Awards.                          alumina requirements. Two further          responsible and to contribute
the High Performance Team              Awards and recognition                                                            strategic upstream bauxite/alumina         to sustainable community
(HPT) approach so as to ensure                                                 2009                                      projects were entered into in the          development; and
continuous as well as breakthrough     DUBAL continues to receive local,                                                 review period:
improvements in our processes.         regional and international accolades,   • Idea of the Year, Productivity,                                                  • Ensuring the broader economic
In addition, our BE Programme is       at both corporate and individual          Health & Safety and Technology          • DUBAL entered into a joint venture       contributions of our operations
complemented by scientific problem-    level. In the two years under review,     Awards in the 2009 Ideas.Arabia           with Hindalco of India and Hydromine     are effectively injected into the      Abdulla	Jassim	Kalban
solving tools and methodologies        the company received the following:       competition.                              of USA in November 2008, to form         local economy.                         President & CEO of DUBAL

Production and
corporate performance

DUBAL’s core values
Our corporate vision — to be one of the top
five aluminium producers in the world by 2015
— is supported by a set of corporate values,
encapsulated in three words: providing, protecting
and advancing.

Providing                                  Without exception, the management
                                           of DUBAL puts the safety and
Our extensive smelting operation           security of people and the land at
at Jebel Ali, Dubai, is set on             the forefront of all decision-making.
a 480-hectare site and provides            We endeavour to act responsibly
excellent career opportunities for         and admirably to protect the
UAE residents. As the UAE’s industrial     environment by providing a safe,
flagship, our company provides a           secure work environment, minimising
major stimulus to the local economy,       harmful emissions, and adopting a
contributing to the nation’s economic      ‘reduce, reuse, recycle’ mentality in
stability, as well as the UAE’s            all our activities.
continued growth and development.
Our high quality aluminium products
are used extensively across diverse        DUBAL, as a company, is committed
industrial sectors, ranging from           to using in-house technology
aerospace and electronics —                to perfect our processes and
where our company is renowned              thereby produce the world’s
for producing the highest purity           best quality aluminium products.
aluminium for these exacting               Extensive laboratory research
applications; through the transport,       and experimentation enables
construction and industrial sectors;       us continuously to identify new
to the automotive industry — where         mechanisms, and ways of doing
DUBAL is a leading supplier of             things, giving our company a
foundry alloy.                             competitive edge that rivals the
                                           best in the industry. Additionally,
Across the spectrum, DUBAL                 we are dedicated to achieving our
products and activities help improve       corporate vision to rank among the
living standards and quality of life for   top five aluminium producers in the
people all over the world.                 world by 2015.


At DUBAL, we pursue our operations
ever mindful of the need to
protect the environment, as well
as the health and safety of our
employees and the community. As a
corporate citizen, we respect the
need to preserve precious natural
resources, especially air and water.

Economic contributions                                  amounted to approximately                career growth) and purchasing
                                                        892,000 metric tonnes and                of goods and services from local
DUBAL’s sales revenues in 2009, at                      955,000 metric tonnes respectively       suppliers. In addition, at least
AED6.92 billion (US$1.88 billion), were                 (a 7.1 per cent year-on-year             40 per cent of the budget
sharply down on the AED9.09 billion                     increase). The volume of cast metal      allocated to each expansion project
(US$2.47 billion) achieved in 2008,                     finished products amounted to            undertaken by DUBAL is allocated to
reflecting the impact of the global                     about 948,000 metric tonnes in           purchases from local contractors
economic recession on the aluminium                     2008 and 1,010,000 metric tonnes in      and suppliers.
sector. Likewise, net profits fell                      2009 (see Figure 1), marking the first
                                                        time that our operations cast more       With regard to raw material and
year-on-year, giving a decline in
                                                        than one million tonnes of aluminium     equipment imports, DUBAL spent
operating margin from 24 per cent
                                                        in a single year.                        approximately AED6,719 million
in 2008 to 15 per cent in 2009.
Prudent financial management,                                                                    (US$1,826 million) over the two-year
                                                        Sales of DUBAL products over
together with the inherent flexibility                                                           review period on goods from
                                                        the two-year period totalled
in our operations to change our                                                                  nations in every part of the world,
                                                        1,925,565 metric tonnes, with
product mix to meet customer                                                                     including Australia, the USA, China,
                                                        the 1,001,257 metric tonnes sold
demands, nevertheless enabled                           in 2009 being 8.3 per cent up on         Jordan, South Korea and Japan
our company to remain profitable                        2008 (924,308 metric tonnes) and         (43 countries in 2008; 17 countries
throughout the two-year period.                         the highest-ever in the company’s        in 2009). Goods were also purchased
Cash generation from operations                         history. Approximately 92 per cent       in the local market.
declined by only 5 per cent.                            of our total production volume is
                                                        exported each year.                      As reported more fully under
Reflecting the additional capacity                                                               “Community Involvement” on pages
commissioned in the plant following                     DUBAL continues to contribute            19 to 22, DUBAL invests substantially
the completion of Potline 6B in                         indirectly to Dubai’s economy            in the socio-economic development
February 2008 and ongoing productivity                  through the positive ripple effects      of Dubai and its people, with specific
improvements, DUBAL’s annual hot                        created by employment (by way of         emphasis on education, career
metal production in 2008 and 2009                       disposable income and individual         development, sport and children; and
                                                                                                 promoting the Emirate abroad.

                                                                                                 DUBAL is a leader in the quality
                                                                                                 movement in Dubai, having
                    800,000                                                                      twice won the Dubai Quality
                                                                                                 Award in the Production and
                                                                                                 Manufacturing sector (1996 and

   Metric tonnes
                                                                                                 2000). As a founding member and
                    400,000                                                                      an investment partner of the Dubai
                                                                                                 Quality Group (DQG), DUBAL also
                                                                                                 participates actively in the non-
                          -                                                                      profit organization’s initiatives.
                                2003    2004     2005       2006    2007    2008   2009          For example, DUBAL founded the
                                                                                                 Ideas.Arabia subgroup of DQG to
                               Years                                                             promote suggestion schemes in
                                                                                                 the Arab region and was the main
                                 Hot metal     Cast metal     Metal sales
                                                                                                 sponsor of the annual Ideas.Arabia
                                                                                                 Conference for the first three
Figure 1: Production statistics (2003 to 2009).                                                  years (2006 to 2008).
17                                                                                                                                                                                                                                                          18

Our company is one of the few              DUBAL invited a team of renowned          are offered, comprising competitive         manpower planning, job description             number of new Emirati recruits hired
smelters worldwide to have its             examiners from Union of Japanese          salaries with yearly increments             and job evaluation systems;                    by the company since 2000 to 1,442.
entire smelter operation, power and        Scientists and Engineers (JUSE),          and an annual merit-linked bonus;           recruitment and succession planning
desalination plants and engineering        Japan to carry-out TQM Diagnosis          health insurance; a pension plan; a         processes; our performance                     Investments are also made in
services accredited to the                 of the company in October 2008.           travel allowance for annual leave           management system; and ongoing                 training, succession planning and
international ISO 9001:2008 Quality        The visit by the team provided valuable   and scholarship opportunities for           skills training and development.               professional development of UAE
Management System standard. The            lessons and was an informative            employees to expand their tertiary                                                         Nationals, in keeping with company
company is also strongly committed         experience for DUBAL to strive further    education. The competitiveness of           Other initiatives to retain talent             policy to develop these employees
to protecting the environment and          towards its quest for excellence.         our compensation and benefits               include on-site accommodation for              for challenging roles with increasing
has achieved full accreditation to                                                   is reviewed regularly through               non-supervisory employees, Haj                 responsibility in the organization.
the ISO 14001:2004 Environmental                                                     participation in formal annual surveys.
                                           Employees                                                                             pilgrimage sponsorship for Muslim              DUBAL’s specifically designed pre-
Management Systems standard.                                                                                                     employees, sports/leisure facilities,          employment courses, for example,
Four other noteworthy international                                                  In addition, the DUBAL performance
                                           Employer of choice                                                                    a CEO Special Recognition award                cater exclusively for the development
certificates held by DUBAL                                                           management system, in place
                                                                                                                                 and long-service recognition.                  of skills and talent among UAE
include ISO/TS 16949:2009                                                            since February 2006, benefits all
                                           DUBAL is widely regarded as an                                                        Open communication is encouraged               Nationals. These courses include both
standards for automotive                                                             employees by ensuring that individual
                                           employer of choice. Evidence                                                          via several platforms, including Voice         classroom and on-the-job training
production and relevant service                                                      employees at all levels are evaluated
                                           of this lies in the fact that our         bi-annually against agreed targets.         Your Opinion (internal satisfaction            in several areas of specialisation,
part organization; Occupational                                                                                                  survey), Imtiaz (in-house journal)
                                           company’s workforce is inherently         The performance management system                                                          including craft, smelter operations
Safety And Health Administration
                                           stable: at the end of 2009,               also helps drive the business by aligning   and the DUBAL Suggestion                       and the combined discipline of power
System, OSHAS 18001:2007;
                                           approximately 27 per cent of our          individual goals to department and          Scheme. Additional details on these            and desalination. In total, 188 UAE
ISO/IEC 27001:2005 for Information
                                           employees had served at DUBAL             corporate objectives, identifying the       options are provided in the DUBAL              Nationals enrolled for DUBAL’s
Security Management Systems; and
                                           for ten to twenty years and around        individuals’ competency levels and          Sustainability Report 2008/2009.               development programmes in
ISO 20000-1:2005 for Information
                                           9 per cent boasted service tenure         developing joint plans to leverage                                                         2008 and 2009. On average, the
Technology Service Management.
                                           longer than twenty years.                 strengths and build on any weaknesses.      Developing local talent                        number of training days per UAE
                                                                                     About 99 per cent of our employees                                                         National increased from 7.8 in 2008
Having launched the DUBAL
                                           At the end of December 2009,              underwent performance reviews in            DUBAL has an active Emiratization              to 8.6 in 2009 — more than double
Suggestion Scheme in May 1981,
                                           the DUBAL workforce comprised a           2009 (up from 95 per cent in 2008).         policy, targeted at employing and              the 4.0 training days per UAE National
our company is the pioneer of
Employee Suggestion Schemes in             total of 3,933 people representing                                                    developing UAE Nationals. More than            recorded in 2006.
                                           more than 37 nationalities                Active participation in continuous          180 UAE Nationals were employed
the Gulf region. Today, our highly
                                           (2008: 4,261 employees). In terms         improvement is encouraged by                for high skills positions across the           This investment in career development
successful Scheme is widely
                                           of employment demographics, our           involving all employees in the              organization during the two-year               contributes indirectly to the economy
recognized locally, regionally and                                                                                                                                                                                       Investing in skills development and
                                           female complement increased from          business. Five main schemes                 period under review (see Figure 2),            of Dubai, as highlighted under
internationally. Over the past 29 years,                                                                                                                                                                                 training
                                           5.3 per cent in 2008 to 6.1 per cent      are used for this purpose, each                                                            “Economic contributions” on page 16.
our Scheme has achieved audited,                                                                                                 bringing the total accumulative
                                           in 2009.                                  offering substantial rewards: EHS
cumulative savings amounting to                                                                                                                                                                                          Moreover, opportunities for training
                                                                                     Councils; Suggestion Scheme; Self-
AED94 million (US$25.5 million) from                                                                                                                                                                                     and development are offered to the
                                                                                     Actuated Teams (SAT); Continuous
a total of 95,400 implemented              The overall proportion of UAE                                                                                                                                                 workforce as a whole, resulting in
                                                                                     Improvement Teams (CITs);
and awarded suggestions.                   Nationals employed by the company                                                                                                                                             an average of 5.0 training days per
                                                                                     and High Performance Teams
New records were set in 2008,              at the end of December 2009 was                                                           1600                                                                                employee in 2009 alone. The central
                                                                                     (HPTs), which have superceded the
when the Scheme implemented and            22 per cent (the majority of our                                                                                                                                              DUBAL Training Centre — certified
                                                                                     former Performance Enhancement
awarded 10,725 suggestions, resulting      Emirati workforce, at 86.1 per cent,                                                      1400                                                                                by both the UK-based Institute of
in audited savings amounting to            being male). The proportionate                                                                                                                                                Leadership and Management (ILM),
AED13.7 million (US$3.58 million); and     Emiratization at senior management        Our expansion projects, penetration                                                                                                 and Boxhill Institute of Training &
achieved 100 per cent participation        level is above 70 per cent.               into new markets and rapid                      1000                                                                                Further Education, Australia —
from eligible employees. A further         These levels compare extremely            adoption of new technologies have                                                                                                   is dedicated to management skills
9,447 suggestions were implemented         favourably against Dubai’s average        placed greater emphasis on the                   800                                                                                training and the delivery of pre-
and awarded in 2009, yielding another      Emiratization level of 4 per cent.        contribution, qualities and skills of                                                                                               employment courses. The DUBAL
                                                                                                                                      600                                                                                Training Centre is complemented
AED11.9 million (US$3.23 million) in                                                 people. Mirroring this, our Human
audited savings.                           Rewarding and retaining talent            Resources (HR) department is                     400
                                                                                                                                                                                                                         by several satellite training centres
                                                                                     focused primarily on ensuring                                                                                                       located throughout the plant, which
Many DUBAL suggestions have                Acknowledging that employees rank         the continual availability and                   200                                                                                deliver function-specific theoretical
also won regional and international        as one of our company’s greatest          enhancement of human skills and                                                                                                     and on-the-job training courses.
competitions, including Ideas.UK of        assets, DUBAL’s compensation policy       capabilities to meet the business                   0
                                                                                                                                              2000    2001    2002    2003    2004   2005    2006    2007   2009
the United Kingdom and the USA EIA,        and strategies are designed to            challenges at all times. Several                                                                                                    The DUBAL Scholarship Programme
as highlighted under “Awards and           ensure maximum retention of talent.       major systems and processes are                                                                                                     enables internal and external
recognition” on page 11.                   Attractive remuneration packages          in place to support this, notably           Figure 2: Number of Emiratis hired (accumulative total jobs per year).                  candidates to pursue higher studies.
19                                                                                                                                                                                                                                              20

Substantial funds are earmarked            • The DUBAL Ladies’ Club and             also contributing indirectly to the     We encourage our employees           and Breast Cancer Month; and
annually to help UAE high school             Fitness Centre                         socio-economic growth of Dubai,         to be socially responsible and       corporate Blood Donation Days in
graduates pursue post-secondary                                                     to the benefit of the Emirate’s         proactively support socially         support of the local blood bank.
education in selected disciplines          • A 9-hole golf course                   cosmopolitan population.                responsible behaviour.
offered at various UAE institutions.                                                                                                                             Corporate sponsorships
This supports broader Emiratization        • A men’s Fitness Centre with a full-    DUBAL’s first formal Corporate        Employee engagement
goals and encourages young UAE               time instructor                        Social Responsibility (CSR) policy                                           As in prior years, our CSR activities
Nationals to choose career paths                                                    and strategy was formulated           Throughout the review period,          during the review period were
which DUBAL can benefit from in            • A swimming pool                        and released during 2009.             DUBAL’s concern for the community      strongly supplemented by DUBAL’s
the future. Mid-2009, DUBAL was                                                     Reflecting DUBAL’s positioning        embraced diverse causes, from          corporate sponsorship of world-
                                           • A Yoga Club with an instructor         as a responsible business entity      non-governmental organizations;        class sporting and industry events
sponsoring 56 university students
enrolled for courses in various fields                                              that is committed to sustainable      through conferences, exhibitions       that showcase Dubai’s tourism
                                           • A mosque, a church and a               development to the benefit of all
of engineering and administration.                                                                                        and symposia; to awards; sporting      and business infrastructure to
                                             gurudwara                              our stakeholders, the DUBAL CSR       events; education; and children in     international audiences; regional
Well structured, accelerated                                                        Policy embodies our CSR Vision,       general. Our efforts were boosted      award programmes that recognize
                                           • An Angling Club and gardening
management development                                                              which is to build partnerships        by the establishment of the DUBAL      and reward innovation; career
programmes, accredited by ILM, are                                                  and develop opportunities to          CSR Club in 2009 as a vehicle to       exhibitions that maintain awareness
offered to first line supervisors and                                               address community needs,              enhance our CSR by encouraging         of our company as an employer of
                                           There is also a Computer Club with
middle managers through the DUBAL                                                   always adhering to world-class        employees to become involved in        choice in the region, with the aim of
                                           internet access for all members.
Development Pool programme; while                                                   standards. It also gives substance    DUBAL’s social, environmental and      increasing the proportional Emirati
                                           Wi-Fi hotspots have been installed
a Senior Leadership Development                                                     to our CSR Mission, which is to       community services programmes.         representation within our workforce;
                                           at two locations, for residents
                                                                                    consolidate DUBAL’s corporate                                                and ad hoc initiatives that promote
programme is conducted by Ashridge         to avail the facility through their
                                                                                    social investment through a strong    Specific examples of this include,     our industry and/or the UAE.
Business School. An extensive              personal laptops. The reading rooms
                                                                                    focus on capacity-building, social    among many others, our support for
range of short workshops is also           have newspapers from local and
                                                                                    innovation, long-term partnerships,   Dubai Autism Center during Autism      In the sporting arena, our major annual
offered to employees so as to              international news media covering        and employee engagement in            Month 2009; our active involvement     sponsorships remained:
develop management competencies            the four major nationalities             community development initiatives.    in the 2009 Emirates Environment
in line with individual needs, as are      accommodated in the complex.
                                                                                                                          Group (EEG) Can Collection             • Dubai Desert Classic: DUBAL has
opportunities to attend external           Cultural and social activities are       Preference is given to supporting     Campaign; outreach visits to             sponsored this PGA European
courses in the UAE and abroad.             encouraged. A dedicated                  initiatives that strengthen DUBAL’s   disadvantaged members of society         Tour-sanctioned event, held annually
The combination ensures that               back-office team provides round-         relationships with our stakeholder    such as Al Mamzar Geriatric Center,      in Dubai, since 1989. Events such
confident and skilled successors are       the-clock reception and                                                                                                                                         • Jet Ski Racing: The UAE National
                                                                                    communities while also making         Al Noor Training Centre for Special      as the Dubai Desert Classic are an
in place for key leadership positions.     maintenance services.                    a positive contribution to our                                                                                           Jet Ski Racing Competition has
                                                                                                                          Needs and Dubai Center for Special       integral part of showcasing Dubai
                                                                                    business. Four major focus areas      Needs; and our participation in          to international audiences.               been included in our sponsorship
To further support the development         The Residential Complex also has         have been defined, namely:                                                                                               portfolio since 2005. In particular,
                                                                                                                          Earth Hour (for the first time).         It highlights Dubai’s superb tourism
of employees, our company also             five dedicated restaurants, run                                                                                                                                   support is provided to three-time
                                                                                                                          These activities have not only           and business infrastructure and
provides E-learning at the desktop,        by a reputed catering company,           • Economic: We support the                                                                                               world champion, Nadir Bin Hindi,
                                                                                                                          strengthened DUBAL’s reputation          demonstrates the city’s innovative
a Management Resource Centre               to suit the tastes of the Indian           economy through direct and                                                   and cosmopolitan flair. The event is      enabling him to compete against a
                                                                                                                          as a caring organization, but also
equipped with books and videos, plus       sub-continent, Filipinos and               indirect financial contributions,   given our people the scope to            organized by ‘golf in Dubai’.             range of national and international
online access to a Virtual Learning        Arab/Western nations. Other                with associated benefits for        express their individual support                                                   champions, in the seven-heat
Resource Centre.                           facilities include a travel agent,         the community.                      for the community while endorsing      • Dubai Ladies’ Masters Golf                National Jet Ski Racing Series.
                                           ATM, supermarket, barber, tailor,                                              the image and positioning of our         Tournament: Our company has
Residential area                           barbeque centres and laundry             • Social: We aim to improve           company and the DUBAL brand.             also been the main sponsor of           • Dubai International Arabian Horse
                                           services.                                  living conditions and create        Employees are also encouraged to         this annual PGA European Tour-            Championship: Since 2007, DUBAL
Approximately 1,500 people (including                                                 opportunities for underprivileged   participate in or support community      sanctioned Dubai Ladies’ Masters          has been a key sponsor of the
contractors) representing nine             Community involvement                      and disadvantaged members           projects, whether individually or in     Golf Tournament since its inception       annual Dubai International Arabian
nationalities are housed within DUBAL’s                                               of society.                         groups, outside of the DUBAL CSR         in 2006.                                  Horse Championship, which is held
Residential Complex. The complex           Being the industrial flagship of                                               Club’s scope.                                                                      under the patronage of H H Sheikh
includes superb leisure facilities for     Dubai and the UAE, DUBAL makes           • Environment: We strive to                                                  • Horse Racing: DUBAL has sponsored         Hamdan bin Rashid Al Maktoum,
sport and recreation, including:           significant direct contributions to        preserve precious natural           Employees and their families were        the Dubai International Racing            (Deputy Ruler of Dubai, UAE Minister
                                           the local economy. As a corporate          resources and act responsibly so    targeted by internal health-focused      Carnival and the Dubai Winter             of Finance and Chairman of DUBAL).
• Three floodlit and grassed pitches       citizen, we are also committed to          as to protect the environment.      community-orientated programmes          Racing Challenge, held at Dubai’s Nad
  for soccer, cricket and hockey           fulfilling our social responsibilities                                         during the two-year period. These        Al Sheba Racecourse for several         The company has been a corporate
                                           by actively supporting community         • Workplace: We encourage             included participation in local and      years. As of 2010, the venue for        sponsor/investment partner to
• Badminton, basketball, tennis, karate,   initiatives and the broader goals of       individual development and          international events, notably World      these events has changed to the         non-governmental organizations
  chess, music and squash clubs            the Dubai Government — thereby             diversity amongst employees.        Diabetes Day, Anti-Tobacco Day           new Meydan Racecourse in Dubai.         for several years, notably the DQG

and the EEG. DUBAL hosted the           with the themes being identified on       partnership with UAE University (UAEU)
13th International Arab Aluminium       an annual basis. For the 2009/2010        for the 2009/2010 academic year.
Conference & Exhibition                 academic year, the chosen theme was       The initiative — known as the “Ta’awon
(ARABAL 2008) and co-hosted             the importance of protecting the          Programme” (‘Ta’awon’ is Arabic for ‘co-
the 14th Commodity Research             environment. The members of each          operation’) — is designed to enhance
Unit World Aluminium Conference         club (all students) are required to       industry collaboration with prominent
(CRU 2009). In addition, DUBAL was      organize field trips to DUBAL; host       universities in the UAE. It embodies our
the Platinum sponsor of Aluminium       activities in which the environment       commitment to giving UAEU students
Dubai 2009; and also sponsored          is highlighted by conducting lectures
                                                                                  exceptional opportunities to work
the 2008 Emirates Energy Awards         by DUBAL employees; and so
                                                                                  on genuine engineering problems
and a category within the inaugural     forth. The concept includes an art
                                                                                  by providing support for students
2009 Power Generation and Water         competition, a writing competition,
                                        outdoor activities (clean-up              enrolled in engineering colleges, with
Solutions Middle East Awards                                                      respect to their graduation projects.
                                        campaigns, tree-planting activities
(specifically the Power Generation &                                              Through DUBAL, the students receive
                                        and so on), and visits to (or by)
Water Solutions Innovation Award).                                                valuable industrial exposure. In return
                                        DUBAL, where handsome cash prizes
                                        are at stake.                             the students, with the help of their
Charities, donations and                                                          universities, invent solutions for
community projects                      Building the nation                       real-life industrial applications, ideally
                                                                                  providing cost-effective solutions for
DUBAL is wholly committed to            As part of our Emiratization policy       upgrading DUBAL’s existing process
supporting worthy and charitable        (described on page 18), DUBAL             requirements. Through this investment
activities in the community,            encourages UAE Nationals to               in people, DUBAL is enriching both
particularly education and career       consider occupations in industry          the students and the company itself:
development initiatives, cultural       through corporate participation           the students tackle real issues,
events, and children.                   in job fairs and exhibitions; DUBAL       giving them meaningful experience in
                                        Career Days; as well as the               the workplace, while simultaneously
The second DUBAL Education Award        company’s well established National       granting DUBAL access to the
programme ran for the duration of       Development Programme. In addition
                                                                                  intellectual capacity and creativity of
the 2008/2009 academic year.            to being a regular and active
                                                                                  our country’s talented young engineers.
This competition-based initiative       participant at the annual Careers
resulted in substantial cash            UAE exhibition, DUBAL also exhibited
                                        at several career- and employer           Community investment
rewards being presented to various
schools across the UAE. During the      day events hosted at the major
                                        universities and tertiary colleges        In 2008 and 2009, DUBAL spent
competition, students from across
                                        across the UAE during 2008 and 2009.      AED71.6 million (US$19.46 million) on
the UAE were familiarized with
DUBAL’s facilities via plant tours                                                CSR activities, corporate sponsorships,
and were then asked to write a          A new educational project was             donations and promotions. The
report or draw a picture about their    developed and implemented in              proportional spend is illustrated below.
visit to DUBAL. The top entries per
school were adjudicated by a panel
of judges including representatives                                          2008 (‘000)               2009 (‘000)
of the Ministry of Education and
DUBAL.                                                                    AED         US$           AED              US$

The pilot phase of a new education-        Education                     1,894         515         1,850             503
related initiative was launched
at the start of the 2009/2010              Environment                    560          152          400              109
academic year. Known as “DUBAL
Clubs of Excellence”, the concept          Charity                        868          236          250               68
entails establishing individual clubs
(of the same name) at five different       General                        270              73       250               68
secondary schools in Dubai.
The mission (and purpose) of these         Sports                       32,579       8,853        32,700          8,886
clubs is to create awareness among
young students on specific themes          TOTAL                        36,171       9,829       35,450           9,634
that project DUBAL’s objectives,
23                                                                                                                          24

     As a responsible corporate citizen,         efforts to protect the environment by    Technical Services department’s
     DUBAL acts responsibly and admirably        eliminating the need to dispose of the   activities and performance
     to protect the environment and              waste to the municipal landfill.         statistics for the review period may
     safeguard the well-being of our                                                      be found in the DUBAL Sustainability
     employees, contractors, site visitors       From June 2008 onward, DUBAL             Report 2008/2009.
     and neighbouring communities.               (represented by the Manager, Power
     To this end, all potential environmental    & Desalination Plant Performance         Environmental management
     aspects, impacts and green issues           Optimisation and the Environment
     relating to our company’s operations        Officer) effectively contributed to      In particular, we — as a company
     are monitored closely – both by DUBAL       the programme: “Efficient Usage of       — acknowledge the importance of
     and independent authorities such as         Electrical Power”, as a major member     preserving precious natural resources
     the IAI. Emissions are tightly controlled   of the committee related to Industrial   and recognize that primary aluminium
     with most internal targets being            Section. This event was organised        production has an inherently large
     well below the legal requirements.          by the UAE Federal Environment           environmental footprint due to the
     A judicious capital investment              Agency to implement decree               energy-intensive nature of the
     programme, designed to sustain              Number 13/2009 of the UAE                process. Dedicated attention is
     DUBAL’s competitive advantage,              Environment & Water Minister             therefore focused on protecting the
     is also in place.                           to address the global warming            environment around our operations
                                                 concerns after the 2007 Arab             by minimising harmful air emissions
     Voluntary investments to minimise           Environment Ministers’ Meeting in        and water-borne effluents, reducing
     DUBAL’s impact on the environment           Cairo on 5 December 2007. The last       our energy and water consumption
     have amounted to more than                  meeting was held in June 2009, at        levels through operating efficiencies,
     US$351 million since 2000. Of this,         which the major and fruitful energy      optimising raw material consumption
     US$330 million was spent on emission        consumption reduction initiatives we     levels, a deep-seated awareness
     control equipment, such as installing       have implemented on our Jebel Ali        of our impact on local ecology, and
     environmentally-friendly low oxides         site were communicated. These notes      adopting a “Reduce, Re-Use, Recycle”
     of nitrogen (NOx) burners in our large      were incorporated among the final        mentality to minimise waste.
     gas turbines — which reduce nitrogen        recommendations of the committee’s
     dioxide (NO2) emissions from 150 parts      programme report.                        We aim to improve DUBAL’s
     per million (ppm) to less than 25 ppm;                                               environmental performance
     an automated pot dig-out facility;          Environment, Health & Safety             continuously. This is evident in our
     and upgrading our baking kilns                                                       Environmental Management
     and fume treatment plants (FTPs)            Being an industrial operation whose      System (EMS) having achieved, and
     to ensure a safer and cleaner               activities and processes have            maintained, ISO 14001 certification
     environment. Also, one of the critical      inherent potential risks, DUBAL is       since 1999. In addition, DUBAL holds
     raw materials we use for anode              conscious of the need to safeguard       corporate membership of numerous
     manufacturing has been changed              the environment and to protect           environmental forums, such as United
     entirely from solid- to liquid pitch —      the safety and health of both its        Nations for Environmental, Scientific
     which poses fewer occupational              employees and residents of the           and Cultural Organization (UNESCO) -
     health and safety hazards.                  surrounding communities.                 since 2004; and EEG - since 1997.
                                                 Since 2001, our company has
     Since late-2007, after a successful         operated an integrated EHS               A green belt concept has been
     trial period, DUBAL signed a contract       department that is responsible for       implemented at our Jebel Ali
     with an Indian company for the sale of      minimising these risks and managing      site to enhance the physical
     100 metric tonnes of petroleum coke         the plant’s performance in these         environment, with specific emphasis
     fines every month against the current       areas. Various sub-structures are        on the Residential Complex where
     production rate of 130 metric tonnes        in place to facilitate the associated    approximately 1,500 employees
     per month. This means that we are           processes, including EHS Councils,       are accommodated. After careful
     now able to recycle a large proportion      EHS Steering Committee Meetings;         research, Indian Almond trees were
     of this waste material, generated by        and SHEQ Management Review               selected for the purpose, as their
     the baking kilns, thus enhancing our        Meetings. Details of the EHS &           leaves also serve as indicators for
25                                                                                                                                                                                                                                                  26

fluoride emission levels. In total,      be a ratio of around 1.92 metric               all technologies) of 14.66 megawatt       Minimising	harmful	emissions	           of aluminium decreased due to
1,800 trees have been planted in the     tonnes of alumina per metric tonne of          hours per metric tonne (MWh/mt)                                                   reduced consumption of distillate
green belt, which is located downwind    aluminium produced.                            aluminium in 2008 and 14.74 MWh/mt        DUBAL employs the best available        fuel and lower sulphur content in
of the potrooms.                                                                        in 2009. Moreover, the thermal            technology for aluminium                the petroleum coke used.
                                         Energy	efficiency                              efficiency of the plant improved from     production as well as for minimising
An EIA was conducted as part of                                                         33.8 per cent in 1999 to 43.3 per cent    air emissions, which are generated      The major air emission from our
our one million tonne plus smelter       Currently, the electrical energy               in 2008.                                  primarily by our power plant and        smelting operation is HF, which
feasibility studies. The aim of the      requirement to run our Jebel Ali                                                         smelting operations. Ambient air        is a particularly noxious gas.
EIA was to identify and quantify the     smelter is more than                           Our in-house developed DX Reduction       monitoring stations are located         Under normal operations, chemical
additional environmental impacts         1,800 megawatts. Our captive                   Technology (detailed on pages 34 and      strategically throughout DUBAL’s        recycling via high-efficiency FTPs
that DUBAL might have due to the         power station ensures that DUBAL               35), installed in a dedicated 40-cell     premises. The units measure a           helps contain the plant’s HF
increased productivity from the plant.   is virtually self-sufficient in terms          potline, offers significantly higher      number of parameters, including         emission levels. Indeed, in a
All aspects of the environment were      of power generation; and provides              energy efficiency, with specific energy   emission levels of oxides of            2005 benchmarking study, DUBAL
investigated, namely air, water, land,   valuable support to the Dubai                  consumption of 13.05 kilowatt hours       nitrogen (NOx), sulphur dioxide         had the second-lowest level
ecology and waste. The final report      Electricity and Water Authority                per kilogram (kWh/kg) aluminium and       (SO2), hydrogen fluoride (HF) and       of fluoride emissions resulting
is awaited and recommendations           (DEWA) via a 400 megawatt inter-tie            95.7 per cent current efficiency.         particulate matter (PM10).              from the production of anodes.
from the EIA will be incorporated        arrangement, which can be used in              This translates into measurable           Recorded data is delivered on-line      The company placed first in the
into DUBAL’s current environmental       either direction.                              energy conservation and associated        to the Environmental Laboratory         particulate fluoride category,
management programmes.                                                                  operating cost reductions, as well        every two hours, enabling               had the second-best performing
                                         Aluminium production is a                      as reduced environmental impact           comprehensive reporting and             smelter and rated third for total
Optimising	raw	material	                 very energy-intensive process,                 through lower fossil fuel consumption.    quick decision-making.                  fluoride emissions.
consumption                              specifically in terms of electricity
                                         consumption, and we therefore place            The IAI is targeting a 10 per cent        Our power generation activities         However, the volume of HF emitted
The major raw materials used for         substantial emphasis on conserving             reduction in the use of direct            generate carbon dioxide (CO2),          in 2008 and 2009 increased over
aluminium production are alumina         energy through efficiency-improving            current (DC) energy for electrolysis      carbon monoxide (CO), SO2,              prior years, primarily attributable
(Al2O3), calcined petroleum coke         measures. For example, by improving            within the global aluminium industry      NOx and PM10. The choice of a           to the re-commissioning of
(C P Coke), liquid coal tar pitch        current efficiency in our potline              by 2010 (from 1990 levels). DUBAL is      combined cycle power system             potlines following the incident
and alumina trifluoride (AlF3, also      operations, we have achieved a                 committed to meeting this target          has enabled marginal reductions         in November 2008: HF emissions
known as ATF). Large quantities of       7.5 per cent reduction (a 6 per cent           and in 2009 the energy consumption        in CO2 emissions (through higher        increased from 0.55 kilograms per
water and energy are also consumed,      reduction in 2008 alone) in the energy         by our plant, at 14.7 DC MWh/mt           efficiencies) through lower             metric tonne (kg/mt) aluminium
as detailed elsewhere.                   needed for electrolysis compared               aluminium, was 5.4 per cent down          consumption of hydrocarbon              to 0.64 kg/mt aluminium over a
                                         to 1990, resulting in an average               on the 15.5 DC MWh/mt aluminium           energy. As of December 2005,            four-month period. To ensure            The main sources of GHGs at
Aiming to minimise resource              smelting energy consumption (across            recorded in 1990 (see Figure 3).          roughly 30 per cent of DUBAL’s          stricter management of our air          DUBAL are mobile equipment and
consumption, DUBAL has set targets                                                                                                entire power generating needs           emissions, our on-site ambient          vehicles; natural gas consumed
for improvement on selected                                                                                                       (more than 1,800 megawatts)             air quality monitoring system has       in the furnaces, baking kilns and
raw materials wherever possible.                                                                                                  has been supplied through               been extended and improved.             rodding room; anode consumption
Quality control measures have been                                                                                                steam turbines.                         The system includes a HF Monitoring     during the aluminium reduction
put in place for all raw materials                                                                                                                                        Network, which provides real-time       process; PFC emissions from
to ensure optimum performance                                                                                                     Moreover, DUBAL uses gas as a fuel      data for HF roof emissions — thus       abnormal pot operating
and productivity of the smelter,                                                                                                  source, secured through long-term       enabling quick remedial action in       conditions (‘anode effects’),
while minimising the impact of our                          15.5                                                                  contracts, which is the ‘cleanest’ of   response to any changes detected.       either as tetrafluoromethane
operations on the environment.                                                                                                    the fossil fuel types (as indicated     A Continuous Emissions Monitoring       (CF4) or hexafluoroethane (C2F6)
The efficiency of our production                            15.0                                                                  by lower emission volumes of SO2,       System (CEMS) is being installed in     which have a GHG warming potential
process has been improved vastly                                                                                                  NOX and PM10). The installation of      all our potlines and the target for     respectively of 6,500 and
                                            MWh DC / t AI

during the period, with the ratio                                                                                                 six state-of-the-art combustion         total fluoride emissions from our       9,200 times greater than CO2 ; and
of raw material input to aluminium                                                                                                systems (low NOX burners) in            Jebel Ali site has been set at less     our power generation activities.
production reducing by 1.7 per cent                                                                                               the power plant is reducing our         than 0.55 kg/mt aluminium.
to 2.3 metric tonnes raw material per                       14.0                                                                  NOX emissions in line with world                                                A programme has been initiated
metric tonne of aluminium — despite                                                                                               standards: the level of NOX emission    DUBAL’s greenhouse gas (GHG)            to facilitate stricter control over
a 7 per cent increase in aluminium                          13.5
                                                                                                                                  at DUBAL dropped by 27 per cent         emissions — which primarily             anode effects and thereby reduce
production over the same period.                                1990        1995        2000           2005            2010       between 2007 and 2009. Over the         comprise CO2 and perfluorocarbons       PFC emissions. The primary aim of
                                                                                                                                  two-year review period, our total       (PFCs) — are closely monitored.         the programme is to decrease the
Alumina consumption, however, is                                       IAI SDI target     DUBAL Performance
                                                                                                                                  SO2 emissions increased in line         In total, our operations emitted        number and duration of anode effects,
directly related to the production of                                                                                             with increased production levels,       7 million metric tonnes and 8 million   through changes in alumina feeding
aluminium and therefore cannot be                                                                                                 however the metric tonnage of           metric tonnes of CO2eq in 2008 and      mechanisms, thus minimising the
altered materially. There will always    Figure 3: DC energy used for electrolysis (1990 to 2009).                                SO2 emitted per metric tonne            2009 respectively.                      generation of PFCs. It is estimated

that the programme will reduce                  reduce its carbon footprint.            process. As the brine discharge
our annual GHG emissions by                     The plan targets reductions in          is typically hotter and more saline
approximately 20,000 metric                     carbon consumption and emissions        than the surrounding seawater at
tonnes of CO2eq.                                from every aspect of our business.      the discharge point, the two types
                                                                                        of water discharge are combined
This will support DUBAL’s efforts to            In addition, DUBAL has signed           and cooled to ensure it is within
achieve the IAI’s target to reduce              an agreement with Masdar                environmental standards before
PFC emissions by 80 per cent                    (Abu Dhabi’s zero carbon, zero          being returned to the ocean.
by 2010 and 93 per cent                         waste city) to identify opportunities
by 2020 (from 1990 levels).                     for PFC reduction in the potlines.      Our desalination plant produces
By 2008, DUBAL had achieved a                                                           two types of water: distilled water
77 per cent reduction in PFC                    Water	management                        (12 per cent of the total), the bulk
emissions (compared to 1990),                                                           of which is used for industrial
to 0.034 kg PFC/mt aluminium.                   Our smelter operation at Jebel Ali      applications within DUBAL; and
Unfortunately, the incident that                is unique in that we generate our       potable water, of which a small
took place in November 2008                     own electricity and produce our         proportion is used for on-site
interrupted this trend, such that               own water. Our plant is not only        domestic requirements. The major
our PFC emissions in 2009 were only             self-sufficient in terms of these       proportion of the potable water
67 per cent lower than in 1990.                 resources, but is also able to supply   we produce (94.9 per cent in 2009)
Operations management is                        both to off-site concerns.              is sold to external customers via
nevertheless confident of achieving                                                     our dedicated water tanker filling
the voluntary 80 per cent reduction             Large volumes of seawater               station, or via pipelines to DEWA and
target by 2010 (see Figure 4).                  are abstracted from the Arabian         adjacent industries.
                                                Gulf by our operations, of
Carbon	management                               which approximately 74 per cent         Despite the ready availability of water
                                                is used for cooling purposes and        at DUBAL, our company consciously
Acknowledging that CO2 is the                   the remaining 26 per cent is            strives to conserve and recycle this
most common GHG and therefore                   desalinated using a multi-stage         precious resource. For example, the
the main cause of global warming,               flash evaporator and filtration         water tanker filling station has been
DUBAL in 2009 developed a                       system. The water returned to           re-engineered to capture spilled
2015 Carbon Management                          the sea comprises cooling water         water, which is now used to irrigate
Strategy and Implementation                     (78 per cent) and brine discharge       the landscaped areas within our
Plan that will help our company                 (22 per cent) from the desalination     site. Extensive use is also made of
                                                                                        recycled grey water (treated sewage
                                                                                        effluent from our on-site plant) to
                                                                                        meet our irrigation needs. In this
                                                                                        regard, improvements to the sewage
                                                                                        treatment plant operations yielded
                                                                                        increased volumes of grey water in
                                                                                        2009, effectively reducing DUBAL’s
                                                                                        reliance on potable water for
                                                                                        irrigation purposes.

  ton CO2eq / t AI
                                                                                        In addition, the desalination plant
                                                                                        has installed additional flow meters
                                                                                        in various areas throughout DUBAL
                                                                                        to better manage our water
                                                                                        consumption; while preventative
                                                                                        maintenance helps minimise water
                                                                                        wastage and losses.
                            1990   1995        2000           2005            2010
                                                                                        Waste	management	
                              IAI SDI target     DUBAL Performance
                                                                                        In compliance with DUBAL’s
                                                                                        ISO 14001 certification and legal
Figure 4: PFC emissions (1990 to 2009).                                                 requirements, a comprehensive
29                                                                                                                                                                                                                                                                             30

Waste Management System is in            Ecology	and	biodiversity                   and process-resistant garments).         stress (i.e. for the third and fourth                                    Safety
operation. This includes waste                                                      DUBAL officially maintains the           consecutive years).
segregation at source, transportation,   The 20 square-kilometre Jebel              OSHAS 18001 Occupational Health                                                                                   From a safety perspective, DUBAL
contractor compliance and appropriate    Ali Wildlife Sanctuary is located          and Safety Management System,            Other initiatives implemented and                                        consistently strives for a lost-
handling and treatment of hazardous      approximately 7 kilometres from            having been re-certified to              managed by our dedicated OHH                                             time injury frequency rate (LTIFR)
materials.                               our smelter operations. The coral          OSHAS 18001:2007 in 2009.                department include:                                                      and fatal injury frequency rate
                                         communities in this conservation                                                                                                                             (FIFR) of zero (measured per
Most of the waste generated by our       site are considered the most diverse       Occupational	health	and	hygiene          • Profiling job descriptions with                                        million man-hours). While not yet
operations (by weight) comprises         in the region and therefore of                                                        regard to potentially harmful                                          achieved, these targets remain
spent pot lining (SPL) and spent         national ecological importance. An EIA     Acknowledging that there are               physical and chemical hazards                                          non-negotiable and have resulted
anodes. Other waste includes             undertaken at our operations found         several health risks inherent in           in the working environment and                                         in an overall improvement in our
dross metal, scrap metal and non-        that the water discharged from             the aluminium production process,          monitoring worker exposure.                                            company’s safety performance
hazardous process waste; plus            DUBAL (brine after desalination) has       DUBAL has introduced policies                                                                                     over the years: the Total
hazardous medical and liquid waste.      localised impact and will not affect
                                                                                    to improve the monitoring and            • Pre-employment medical                                                 Recordable Injury Frequency
The volume of waste generated in         the sanctuary.
                                                                                    management of our employees’               examinations, including chest                                          Rate (TRIFR), comprising lost
2008, at 322,439 metric tonnes, was                                                 general health. For instance, all          x-rays, audiograms, optometric                                         time injuries, restricted work and
17 per cent higher than in 2007 —        Our site is immediately adjacent
                                                                                    employees working in operational           assessments and lung                                                   medical treatments per million
reflecting a doubling in anode           to several other major industrial
                                                                                    areas undergo a series of medical          function tests.                                                        man-hours) has declined from
waste due to the need to re-line         corporations, such as the Jebel
                                                                                    tests every two years, allowing the                                                                               13.12 in 2004 to 5.65 in 2008 and
pots following the incident in           Ali Port, oil refineries and so forth.
                                                                                    early detection of any occupation-       • Regular follow-up medical                                              4.27 in 2009. Overall, a 96 per cent
November 2008. A marginal decline        The combined impact of our
                                         operations on local plant and animal       related health illnesses,abnormalities     examinations for early detection                                       drop in LTIs has been achieved
to 332,369 metric tonnes was
                                         communities has been fairly severe,        or unusual circumstances.                  of medical conditions, scheduled                                       since 1997 (see Figure 5).
recorded in 2009.
                                         with little natural habitat remaining.                                                according to workplace exposure
                                         To redress the situation, DUBAL            With regard to occupational                to potentially harmful physical and                                    Overall, the total number of lost
Waste recovery and recycling remain
                                         is actively pursuing opportunities         health and hygiene (OHH) in                chemical hazards.                                                      days due to OHH-related causes
key areas of focus. This lead to
                                         to restore the habitat and create          particular, special emphasis is                                                                                   decreased to 121 and 55 days
87 per cent and 86 per cent of waste
                                         aesthetically pleasing boundaries          placed on reducing exposure to           • An ongoing awareness campaign                                          in 2008 and 2009 respectively,
being recovered in 2008 and 2009
                                         to the site. This includes the green       the prevailing risks — particularly        to raise understanding of and                                          compared to 473 days in 2006.
respectively (including aluminium
                                         belt concept mentioned under               noise-induced hearing loss,                personal accountability for
scrap, spent anodes and dross) —
                                         “Environmental management”                 inhalation of hazardous gases              illnesses and conditions such as                                       Moreover, on 27 May 2009, regular
a large proportion of which was fed                                                                                                                                                                                                          safety record of 10.3 million man-
                                         on page 24.                                and dust particles, and exposure           diabetes, swine influenza, obesity,                                    employees within our smelter
back into the production process as                                                                                                                                                                                                          hours worked (399 days) without a
                                                                                    to high ambient temperatures.              high blood pressure and so forth.                                      operations achieved a remarkable
raw material. Other waste streams
                                         Going forward, DUBAL is committed          Appropriate PPE is issued to                                                                                                                             lost time injury (LTI). The milestone
are recycled, landfilled or treated on
                                         to continually performing marine           employees to mitigate the risks of                                                                                                                       approximated 15.4 million man-hours
site. For example, the liquid waste
                                         surveys, monitoring the plant’s            their respective occupations and                                                                                                                         when the safety performance of
from our Jebel Ali site is treated
                                         effluents and deploying independent        places of work.                                                                                                                                          contractors’ employees engaged
on-site and the sludge residue is                                                                                                                                         14
                                         technical expertise to ensure that                                                                                                                                                                  for project work on the site, over
disposed of at a hazardous waste
                                         the impact of our operations on the        Since the start of the new                                                                 13.2                                                          the same time period, is factored in.
landfill site. No DUBAL waste is
                                         environment is minimised.                  millennium, our company has                                                           12                                                                 Also, DUBAL Projects achieved zero

                                                                                                                                 Total Recordable Injury Frequency Rate
shipped internationally.                                                                                                                                                                      11.65

                                                                                    actively pursued a quest to reduce                                                                                                                       LTI for 29 months, equating to
                                         Employee Health and Safety                 the number of lost working days                                                       10                                                                 14.8 million hours.
Good progress was made during the                                                                                                                                                      10.2

review period in terms of recycling                                                 due to heat rash and heat stress
                                         From the outset, DUBAL has placed          cases within our workforce.                                                           8                                                                  Given that the main risks are heavy
SPL-refractory material as an
alternative fuel and raw material        the highest priority on ensuring the       The initiative has gained additional                                                                                                                     machinery and vehicles, extremely
                                         occupational health and safety of the      emphasis since 2006, evolving into                                                    6                                                                  hot molten metal and high amperage
(AFR) for the cement industry.                                                                                                                                                                             6.08
After extensive consultation with        company’s employees and contractors.       the dedicated “Beat the Heat”                                                                                                                            electrical circuits, the formal
the major cement industry players        Formal policies and procedures are         campaign. During the review                                                           4                                                     4.27         interventions include:
in the UAE, a formal agreement was       in place; and personal protective          period, the campaign continued
signed with Union Cement Company         equipment (PPE) appropriate to             to deliver excellent results: zero                                                    2                                                                  • Safety training for all new
(UCC) in Ras Al Khaimah and several      each area of operation is issued to        lost days as a result of heat rash                                                                                                                         recruits, with follow-up refresher
loads of SPL have been shipped           employees and contractors (including       were recorded in both 2008 and                                                        0                                                                    training at appropriate intervals.
                                                                                                                                                                               2004   2005    2006        2007      2008       2009
to UCC. This development has             hard hats, goggles, hearing protection,    2009 (i.e. the second and third
effectively diminished the need to       heat-resistant gloves, industrial boots,   consecutive years); as were zero                                                                                                                         • Restricted access to
send SPL to a hazardous waste site.      masks with particulate and gas filters,    lost days as a result of heat            Figure 5: Total recordable injury frequency rate (2004 to 2009).                                                  operational sites.

• Safety-driven operating rules           The DMC provides primary health
  within the facility, including strict   care, occupational health surveillance,
  occupational hygiene standards.         emergency services and in-patient
                                          services, with a capacity of five beds
• Campaigns to reinforce awareness        and two private rooms. The number of
  of DUBAL’s safety regulations.          visits to DMC exceeded 30,000 in 2009.

• Reporting systems for risky             As mentioned earlier, a dedicated
  behaviour and potential hazards,        OHH department works closely with
  which have led to substantially less    DMC and is responsible for matters
  lost time incidents as well as a        relating to employees’ occupational
  reduction in the severity               health and hygiene. Its activities
  of incidents.                           include a systematic programme that
                                          monitors the effects of substances
The pilot phase of a new behaviour-       and environmental conditions that
based safety system known as Tamahal      could be hazardous or detrimental to
(Arabic for ‘slow down’) was introduced   employees’ health (such as dust, gas,
in 2008 and a gradual roll-out across     noise and heat).
the site took place in 2009. The aim of
Tamahal is to encourage employees         Asset Protection and
to take the time to observe whether       Business Continuity
or not everything is safe before they
proceed. The system uses awareness        DUBAL has completed the
sessions, formal training sessions,
                                          implementation of both phases of
coaching and mentoring, feedback
                                          a comprehensive Crisis/ Emergency
meetings, recognition and rewards in a
                                          and Business Continuity Management
psychological process to address basic
                                          System (DCEBCMS) to ensure effective
employee needs while emphasising
                                          control of any crisis, emergency
the importance of safe behaviour.
                                          situation or business interruption.
To ensure the most positive results
                                          Teams have been formalized at various
are obtained, employees are engaged
                                          levels in the organization in order to
and consulted in the process; and
                                          reduce the risks (a proactive approach)
guided in a positive way towards safer
behaviour practices. Further details of   and prompt structured response
the Tamahal programme can be found        in case of any emergency business
in the DUBAL Sustainability Report        situations.
                                          The second phase of the DCEBCMS
DUBAL	Medical	Centre                      began in 2008 and involved building
                                          the Business Continuity part of the
DUBAL Medical Centre (DMC) is             system for DUBAL. This entailed two
one of the most modern medical            steps — Business Impact Analysis (BIA);
centres at an industrial site in the      and preparation of Business Continuity
UAE. It provides healthcare services      Plans (BCPs) — which were completed
to all employees under the guidance       with the assistance of consultants from
of highly experienced and qualified       Australia during 2009.
medical professionals supported
by specially trained medical and          Our Security & Fire department has
administrative staff.                     also initiated the installation of a fully
                                          integrated electronic access control
The DMC operates 24 hours-a-day           system, including surveillance cameras
and is fully fledged, comprising          and closed circuit television (CCTV).
most modern medical equipment and         This development will ensure that
facilities such as X-ray, laboratory,     our site complies with UAE legal
defibrillators and ambulances with        requirements while enhancing
in-built/mobile clinical facilities.      business security management.

Operating performance                         total of 1,573 cells in eight potlines.   • The production of DUBAL’s
                                              The latest expansion phase —                10 millionth tonne of hot, molten
DUBAL’s annual hot metal                      Potline 6B — was completed by               aluminium in mid-July 2008;
production in 2009 amounted to                February 2008 and entailed the
955,404 metric tonnes, up                     industrial scale implementation of        • Casthouse production exceeding
7.1 per cent on the 891,723 metric            40 DUBAL DX Reduction Technology            one million metric tonnes in one year,
tonnes achieved in 2008; while the            cells. The operational area has since       for the first time ever, in 2009; and
volume of cast metal products                 been re-named Potline 8.
manufactured in 2009, a record                                                          • Greenmill producing DUBAL’s
1,009,772 metric tonnes, rose by                                                          six millionth green anode in
                                              These expansions, using in-house
6.5 per cent year-on-year                                                                 August 2009.
                                              developed technologies together
(2008: 947,507 metric tonnes).                with amperage increases and
In total, 1,001,287 metric tonnes                                                       Concurrent expansions have
                                              efficiency improvements (known as         taken place within the Power &
of product was sold in 2009 –
                                              ‘creep’), have resulted in compound       Desalination Operations, resulting
8.4 per cent higher than in 2008
                                              annual growth in production of            in the power generation capacity
(924,308 metric tonnes) and the
                                              more than 9.6 per cent since 1995.        at DUBAL reaching above
highest-ever in DUBAL’s history.
                                              Continued growth in hot metal             2,335 megawatts by early
Since its inception in 1979, DUBAL            production is expected, driven by         December 2009 (at 35°C ambient).
has evolved into one of the world’s           further creep, such that DUBAL’s          The power generation capacity
largest smelters with a captive               inherent hot metal production             increase was not only a result of
power station. Over the years, our            capacity now exceeds one million          additional units’ installation, but also
company has undergone a series                metric tonnes per annum. The              implementing power augmentation
of sequential expansions, resulting           growth trend is depicted in Figure 6.     projects such as upgrades of gas
in the number of aluminium                                                              turbines and the installation of
reduction cells within our Jebel Ali          Several major production                  evaporative coolers in the large
                                              milestones were achieved during           gas turbines’ inlet structure.
plant increasing from 360 in three
                                                                                        The evaporative cooler project
potlines at start-up to a current             the review period, notably:
                                                                                        increased the overall generating
                                                                                        capacity by an annual average of
                                                                                        53 megawatts. The additional
                                                                                        generation capacity is illustrated
                                                                                        in Figure 7, spread over the months
                                                                                        during the year 2008 (see page 35).
                                                                                        Technological innovation
                                                                                        The years 2008 and 2009 have
                                                                                        been key in the development of
   600                                                                                  DUBAL’s proprietary DX Reduction
                                                                                        Technology, the successful and
   400                                                                                  sustained performance of which
                                                                                        has not only been demonstrated on
                                                                                        an industrial scale in Potline 8 of
   200                                                                                  DUBAL but has also been brought
                                                                                        to the level of the best available
      0                                                                                 technologies available in our
           1980 1990 1996 1999 2003 2005 2006 2007 2008 2009 2010                       industry today. This success dates
                                                                                        back to 2006, when DUBAL decided
                                                                                        to build a demonstration line of
Figure 6: Growth in smelter capacity (1980 to 2010).                                    40 DX Reduction Technology pots at
35                                                                                                                                                                                                                                                               36

our smelter in Jebel Ali. This potline,            • An energy-efficient design                 Over the same period, DX Reduction          promote joint interests. We are            The re-positioned, more evolved
re-named Potline 8, was started-up                   that enables specific energy               Technology has been licensed to             very proud of our marketing and            brand is in the process of being
in February 2008 with the following                  consumption of 13.05 kilowatt              and installed in the 756-cell EMAL          sales team, which comprises UAE            implemented throughout the
objectives:                                          hours/kilogram aluminium and               Phase I smelter complex at                  Nationals who have been trained            organization in such a way that
                                                     95.7 per cent current efficiency,          Al Taweelah, Abu Dhabi.                     by DUBAL in collaboration with             every point of contact between
• Being a demonstration line;                        together contributing to energy                                                        the world’s best institutes and            the company, suppliers, customers
                                                     conservation and associated                During the two years under review           universities over the past few             and business associates clearly
• Achieving world-class                              operating cost reductions.                 a large proportion of our company           years. This team represents the            demonstrates DUBAL’s ethics,
  performances; and                                                                             has mobilised to support the EMAL           company internationally, at the            values and excellence.
                                                   • Reduced environmental impact               project through technology transfer         highest level.
• Being a training platform for                      through lower fossil fuel                  end technical support. The most                                                        The brand strategy, vision and
  personnel of EMAL personnel                        consumption (a direct benefit              important items to be mentioned are:        Today, DUBAL is widely acclaimed           values – designed to support the
  and future pro jects.                              of enhanced energy-efficiency)                                                         as a leading producer of                   company’s corporate strategic
                                                     and reduced carbon consumption             • Development of a comprehensive            automotive foundry, and high-              goal for 2015 – have been
All these objectives have been                       (anodes) of less than 0.408 kilograms        DX technology package, delivered          purity ingot, and extrusion billet.        translated into a new visual
achieved, making DX Reduction                        carbon/kilogram aluminium.                   as scheduled to EMAL.                     In total, the company manufactures         system that better communicates
Technology a flagship innovation                     Moreover, DX Technology cells                                                          112 individual product lines, of           DUBAL’s personality attributes.
of the UAE.                                          experience minimal anode effects           • Delivering our proprietary, in-           which more than 70 are made to
                                                     (0.018 AE/pot/day), resulting in             house developed DUBAL pot                 customer specifications. Extrusion
Operating stably at high amperages,                  perfluorocarbon emissions of                 control and potline supervision           billet production in 2009, at just
DX Reduction Technology reduction                    less than 0.01 metric tonnes                 system, as per schedule.                  over 519,072 metric tonnes, was
cells offer several benchmark                        CO2eq /metric tonne aluminium.                                                         the highest-ever and accounted for
attributes that provide significant                                                             • Technical assistance on-site.             51.4 per cent of total production.
advantages, notably (at 370 kA plus):              • Fully engineered versatility —                                                         Foundry alloy production
                                                                                                • A training or familiarisation
                                                     featuring proven magnetically                                                          represented 23.6 per cent of the
                                                                                                  programme for EMAL personnel in
• Superb productivity of 2.8 metric                  efficient busbar configuration,                                                        total, with pure and high purity
                                                                                                  all fields of a smelter’s activity, as
  tonnes of aluminium/pot/day plus                   anode configuration, superstructure,                                                   metal accounting for 22.4 per cent.
                                                                                                  planned, for 1,233 EMAL employees
  at exceptionally high purity levels                shell and lining designs, process                                                      Anode bars and busbars accounted
                                                                                                  and implemented as scheduled.
  of better than 99.93 per cent,                     controls and operational practices                                                     for the balance (see Figure 9).
  giving rapid returns on capital                    — allowing operating capability
  expenditure; plus excellent creep                  plus inherent potential for                Market penetration                          A comprehensive exercise,
  potential, promising even better                   developing even higher amperage                                                        initiated in late-2005, has
  yields per pot.                                    performance capacity.                      DUBAL markets its high quality              developed the DUBAL brand fully.
                                                                                                products throughout the world,
                                                                                                largely through direct dealings with
                                                                                                more than 250 customers in about
                                                                                                45 countries across the world. The
   90                                                                                                                                                                                                                                3%
                                                                                                key markets served by our company
                                                                                                are the Far East, Europe, the ASEAN
                                                                                                region, the MENA region, and North                      37%
     70                                                                                         America (see Figure 8 on page 36).
                                                                                                Our marketing strategy is to sell
   60                                                                                           directly to end-users wherever                                                            42%
                                                                                                possible. A network of sales facilitators
   50                                                                                           has nevertheless been established
                                                                                                in key markets, where a direct sales
   40                                                                                           force is not practical or untenable.
                                                                                                Freight forwarders and warehouses                                                                                   24%                                    51%
   30                                                                                                                                                     5%
                                                                                                facilitate the delivery of finished
                                                                                                products to the customer’s plant,                                  16%
                                                                                                especially in Europe.
                                                                                                                                                                     Asia     Europe                                      Extrusion billet     Foundry alloy
          Jan    Feb    Mar    Apr    May    Jun     Jul   Aug   Sep    Oct    Nov    Dec       Emphasis is placed on developing                                 North America    MENA                                 Pure & high purity      Anode & busbars
                                                                                                and nurturing strong, enduring
                                                                                                links with customers. The result
Figure 7: Increased power generation capacity at DUBAL during 2008, due to evaporate cooling.   is long-term relationships that             Figure 8: Market penetration, 2009.                          Figure 9: DUBAL’s product mix, 2009

Our investments

In support of our vision, we have         state-of the-art emission control                    will reach 7.4 metric tonnes
taken a two-pronged approach:             equipment including SO2 scrubbers,                   after expansions. DUBAL holds
                                          the latest potroom gas treatment                     19 per cent equity in the joint
• Expanding our core smelting             technology, the best-available gas                   venture and additionally will obtain
  operations, both organically and        turbine systems, and cooling towers                  200,000 metric tonnes commercial
  through greenfield developments         to eliminate thermal stress on local                 alumina off-take.
  through our joint venture with          marine life.
  Mubadala Development Company                                                            • Guinea Alumina Corporation (“GAC”),
  (Mubadala) and                          DUBAL will market the metal produced              Republic of Guinea — This project
                                          by EMAL. This will amount to                      entails the development of a
• Pursuing upstream investments           approximately 260,000 metric tonnes               3.3 million metric tonne per year
  to secure a portion of our alumina      of cast aluminium in 2010, ramping up             alumina refinery with associated
  requirements.                           to full capacity thereafter.                      bauxite mine in the Republic of
                                                                                            Guinea. DUBAL has a 25 per cent
Additional smelting                       In addition to EMAL, DUBAL is                     equity stake in the project as well
operations                                reviewing, together with Mubadala                 as an off-take of 40 per cent of the
                                          and partners, two other aluminium                 production. This project is a joint
Our major smelter development             projects in the MENA region which,                venture with BHP Billiton, Mubadala
project is EMAL, a 50:50 joint venture    after feasibility studies are completed,          and the original promoters,
with Mubadala, which was established      will also benefit from DUBAL technology,          Global Alumina.
in February 2007 to construct what        project execution and operational
will become the world’s largest           expertise.                                      • Cameroon Alumina Limited (“CAL”),
single-site aluminium smelter                                                               Cameroon — DUBAL (45 per cent),
complex. The project is being built in    Upstream projects                                 Hindalco of India (45 per cent)
two Phases and EMAL will produce                                                            and Hydromine of USA (10 per cent)
                                          With regards to alumina feedstock,                have formed this joint venture
approximately 750,000 metric tonnes
                                          DUBAL is in partnerships to develop               company to exploit the
of aluminium per annum at the end of
                                          strategic upstream bauxite/alumina                500 million metric tonnes bauxite
Phase I (2010) and 1.5 million metric
                                          projects, namely:                                 ore in Cameroon. A mining license is
tonnes annually at the end of Phase II.
                                                                                            expected in 2010.
DUBAL DX Reduction Technology has
                                          • Companhia de Alumina do Pará
been licensed to EMAL Phase I
                                            (“CAP”), Brazil — This is a joint             • Raykal, India — A joint venture with
(see pages 34 and 35). The aluminium        venture with VALE of Brazil and                 Larsen & Toubro in India, Raykal
complex, a 6 sq. km site in the Khalifa     Norsk Hydro of Norway to build an               plans to develop a 3.0 million metric
Port Industrial Zone in Al Taweelah,        alumina refinery in Brazil close to             tonne per year alumina refinery with
half-way between Abu Dhabi and              VALE’s existing refinery. The CAP               associated bauxite mine in Orissa.
Dubai, will produce primary aluminium       refinery will have an initial capacity of       DUBAL currently holds 74 per cent
with a product mix of sow, standard         1.86 metric tonnes per annum, but               equity in the joint venture.
ingot, tee ingot, extrusion billet and
sheet ingot.

Being the largest industrial project
in the UAE outside the oil and gas
industry, the project will encourage
economic diversification, creating
downstream opportunities.
This development will benefit the
UAE economy, employing more than
17,000 local and international
contractors/ staff during                                                                            UAE
construction and giving approximately
2,000 people direct employment                                                  Guinea                  India
once operational.
EMAL aims to meet the strict                  Smelter projects
environmental standards set by the            Upstream projects
Abu Dhabi Environmental Agency, with

strategic vision
As stated on pages 3 and 14, DUBAL’s vision is
“to be among the world’s top five primary
aluminium producers by 2015”.

However, since formulating our
vision in 2005, we now have virtual
certainty of achieving that and
accordingly, we have revisited our
corporate vision “to be the best
aluminium company in production,
markets, people and results” by
2020. Rather than purely chasing
size, we are now focusing on doing
everything to the very best,
most exacting standards, as
outlined below:

• Production – Operational
  Excellence; World-class
  Technology; High quality, Efficiency
  & Productivity.

• Markets – Exceed Customer
  Expectations; Quality Products
  and Services; Earn Market/
  Product Premiums.

• People – Recognised as Employer
  of Choice; Opportunities for
  UAE Nationals; Quality,
  Motivated People.

• Results – Superior Profitability;
  Shareholder Value Creation;
  Economic Contribution to Dubai.
41                                                                                                                                                                  42

     AE        Anode Effect                                                       HR       Human Resources
     AED       Arab Emirates Dirhams                                              IAI      International Aluminium Institute
     AFR       Alternative Fuel and Raw Material                                  ILM      Institute of Leadership and Management
     ARABAL    Arab Aluminium                                                     ISO      International Organization for Standardisation
     ASEAN     Association of South East Asian Nations                            iPOTS    Internet POTS
     ATM       Automated Teller Machine                                           IT       Information Technology
     BCP       Business Continuity Plan                                           ITGAF    IT Governance Assurance Forum
     BE        Business Excellence                                                ITSM     Information Technology Service Management
     BIA       Business Impact Analysis                                           JUSE     Union of Japanese Scientists and Engineers
     BSC       Balanced Scorecard                                                 kA       Kilo-Amperes
     CAL       Cameroon Alumina Limited                                           kg/mt    Kilograms per metric tonne
     CAP       Companhia de Alumina do Pará                                       kWh/kg   Kilowatt hours per kilogram
     CCTV      Closed Circuit Television                                          LME      London Metal Exchange
     CDM       Clean Development Mechanism                                        LSS      Lean Six Sigma
     CEMS      Continuous Emissions Monitoring System                             LTI      Lost Time Injury
     CEO       Chief Executive Officer                                            LTIFR    Lost Time Injury Frequency Rate (per million man-hours)
     CIT       Continuous Improvement Team                                        MEBA     Middle East Business Award
     CO        Carbon monoxide                                                    MENA     Middle East North Africa
     CO2       Carbon dioxide                                                     MRM      Mohammed Bin Rashid Al Maktoum Awards
     COT       Customer Order Tracking                                            MSS      Management Self Services
     CRU       Commodities Research Unit                                          MWh/mt   Megawatt hours per metric tonne
     CSR       Corporate Social Responsibility                                    NO2      Nitrogen dioxide
     DC        Direct Current                                                     NOx      Oxides of nitrogen
     DCEBCMS   DUBAL Crisis/Emergency and Business Continuity Management System   OHH      Occupational Health and Hygiene
     DEWA      Dubai Electricity and Water Authority                              OSHAS    Occupational Safety and Health Administration System
     DMC       DUBAL Medical Centre                                               PFC      Perfluorocarbon
     DQG       Dubai Quality Group                                                PGA      Professional Golf Association
     DUBAL     Dubai Aluminium Company Limited                                    PM       Particulate Matter
     EEG       Emirates Environment Group                                         ppm      Parts Per Million
     EHS       Environment, Health & Safety                                       QA       Quality Assurance
     EIA       Environmental Impact Assessment                                    QC       Quality Control
     EMAL      Emirates Aluminium Company Limited                                 SAP      Systems Applications and Products in Data Processing
     EMS       Environmental Management System                                    SAT      Self-Actuated Team
     ESS       Employee Self Services                                             SHEQ     Safety, Health, Environment and Quality
     FIFR      Fatal Injury Frequency Rate (per million man-hours)                SPL      Spent Pot Lining
     FTP       Fume Treatment Plant                                               SO2      Sulphur dioxide
     GAC       Guinea Alumina Corporation                                         TRIFR    Total Recordable Injury Frequency Rate
     GHG       Greenhouse Gas                                                     UAE      United Arab Emirates
     GRI       Global Reporting Initiative                                        UAEU     UAE University
     GUI       Graphic User Interface                                             UCC      Union Cement Company
     HF        Hydrogen fluoride                                                  UNESCO   United Nations for Environmental, Scientific and Cultural Organization
     HH        His Highness                                                       US$      United States Dollar
     HPT       High Performance Team                                              USA      United States of America
For additional information, contact:
Dubai Aluminium Company Limited
P O Box 3627, Dubai, United Arab Emirates
Tel: + 971 4 884 6666
Fax: + 971 4 884 6919

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