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Global Alumina Corporation (TSX: GLA.U) (the "Company" or "Global Alumina"), a corporation participating in a joint venture to develop an alumina refinery, mine and associated infrastructure in the bauxite-rich region of the Republic of Guinea (the "Project"), announced that the joint venture board of directors approved additional Project funding of $4.0 million for the period July 1, 2011 through July 31, 2011. Global Alumina will be responsible for its one-third share of this amount. The joint venture board had previously approved cumulative Project funding from inception through June 2011 of $760.8 million of which $739.1 million was incurred or prepaid through May 2011 and $735.9 million has been funded to date.
Global Alumina has approximately $33.6 million in cash, $26.1 million of which is in escrow available for Project development and $7.5 million of which is unrestricted and available for general corporate purposes. The Company also has a $33.3 million subscription receivable due to the Company on the completion of the Project debt financing.
About Global Alumina
Global Alumina is in a joint venture through its wholly owned subsidiary, Global Alumina International, Ltd., with BHP Billiton, Dubai Aluminium Company Limited and Mubadala Development Company PJSC, to develop a 3.6 million metric tons per annum steady state capacity alumina refinery in the bauxite-rich region of the Republic of Guinea. Global Alumina has offices in New York, London and Montreal. The Company's registered office is in St. John, New Brunswick. For further information visit the Company's website at www.globalalumina.com.
The Middle East crash meant job losses and unrecovered debts for many construction firms - and a scaling back of operations. Now, with infrastructure investment and a World Cup to prepare for, it might be worth taking another look. Emily Wright surveys the landscape in Qatar, Dubai and Abu Dhabi
In November 2008, life for UK construction companies working in the Middle East changed overnight. As the world started to skid into a recession the Middle Eastern markets crashed one by one, led by a colossal fall in Dubai. British firms desperately tried to move staff out and recover what funds they could from abandoned projects. Although Dubai was hit first and hardest - mainly because, with no oil reserves, it relied on external investment to develop - Abu Dhabi, Qatar and Saudi Arabia all felt the ricocheting effects. One UK consultant working in Dubai at the time of the crash said: “I remember in November Nakheel opening the Atlantis hotel, spending $20m (£12m) on fireworks and then virtually the next day laying 500 people off. After that, things changed very quickly.”
Indeed, thousands of workers from UK contractors and consultants found themselves without jobs and tied into rental contracts for months in advance with no way of paying up. It was said to be impossible to park at Dubai airport as almost every space was taken up with abandoned company cars as people fled the country. Costs incurred and unrecovered fees left many firms crippled with debt - at one stage, Dubai developer Nakheel owed UK firms £250m in unpaid fees.
Non-performing loans (NPLs) of the UAE banks are expected to peak above 10 per cent this year up from 8.3 per cent in 2010 and 4.9 per cent in 2009, rating agency Moody's said in a report Thursday.
Moody's expects the upcoming Dubai Holding's $10 billion (Dh36.7 billion) debt restructuring will be one significant contributor to this year's NPL levels.
"Dubai-based banks typically have high exposures to Dubai government-related entities, and we consequently expect NPLs to peak in 2011 at around 6 per cent to 8 per cent in Abu Dhabi and 11 per cent to 14 per cent in Dubai," said Khalid Howladar, vice-president — Senior Credit Officer at Moody's.