Dubai Aluminium (Dubal) said yesterday it was still interested in joining a key Saudi mining company in building a 750,000-tonne-capacity aluminium smelter despite falling world demand.

Khaled bu Humaid, Dubal's Vice-President for International and Corporate Relations, said Dubal had never thought of pulling out of the joint venture to be set up with the Saudi Arabian Mining Company (Maaden) in King Abdullah Economic City, the largest industry and business hub in the Gulf Kingdom.

"Dubal is sill interested in this project…it is still on the table. This project is extremely important for Dubal and we have never thought of pulling out of it," Bu Hamid told the Saudi Al Watan Arabic language newspaper.

Dubal, the second largest smelter in the Middle East after Bahrain's Alba, held talks with Maaden in April over the plan, 13 months after it signed an initial agreement with the Saudi Arabian General Investment Authority (Sagia) and Emaar Economic City to develop the smelter.

Bu Hamid's comments yesterday followed remarks by another Dubal official in Dubai last month that plans for the smelter are uncertain because of the global economic conditions.

The remarks last month came after mining giant Rio Tinto said in late 2008 that the global crisis made it impossible to finance its 49 per cent stake in a joint venture with Maaden, which was projected to cost $10 billion (Dh36.72bn).

"We are pushing ahead with the construction of this smelter after the decline of its costs by around 20 per cent to $8bn," the paper quoted Maaden CEO Abdullah Al Dabbagh as saying yesterday.

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