Emirates Global Aluminium reported on August 12, 2026, that its Al Taweelah smelter in the United Arab Emirates is currently operating at 18% of capacity following a March Iranian strike on the facility. The company expects the plant to return to pre-incident output levels during the first quarter of 2027. The Al Taweelah smelter, which has an annual capacity of 1.5 million metric tons and is the largest smelter in the Middle East, was forced into an emergency shutdown following the Iranian strike.
The incident initially sent aluminum prices toward four-year highs. EGA has since restarted the first cell on May 26 and is working to accelerate the restoration timeline. According to EGA's earnings release, hot metal production is expected to reach pre-incident levels in Q1 2027.
The capital expenditure required to restore full production capacity is estimated at approximately $400 million. The strike resulted in an 84 million dirham loss, equivalent to approximately $23 million, to EGA's first-half 2026 earnings. CEO Abdulnasser Bin Kalban stated that the first half of 2026 was the most challenging period in EGA's operational history.
Despite the facility's reduced output, the company has continued operating through alternative logistics routes. CFO Pal Kildemo indicated that EGA was able to receive 100% of inbound materials through non-traditional channels even before the Al Taweelah disruption. While using alternative routes represents a massive logistical operation, Kildemo noted that the higher premiums being achieved more than offset the increased costs.
Kildemo emphasized that EGA's current setup allows the company to maintain supply across various scenarios, even if the Strait of Hormuz does not reopen in the near term. However, the company will need to strengthen its outbound export options should the strait remain closed for an extended period. Beyond the Al Taweelah situation, EGA is progressing on plans to build an aluminum smelter in the United States in partnership with Century Aluminum.
A critical long-term power supply contract for the U.S. facility has not yet been secured. Bin Kalban indicated that negotiations are ongoing and that the company is making good progress toward concluding an agreement. Source: Reuters, August 12, 2026, as reported by Mining.com
Source: mining.com