Sohar Aluminium eyes year-end for expansion plan

Aluminium production has swiftly developed in Oman.

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Sohar Aluminium has set itself the deadline for the end of the year to decide the details of its production expansion.

The Omani manufacturer, which produces 740,000 tonnes of aluminium annually and recently produced its millionth tonne, is now more than three years old since the start of its first pot in June 2008.

Formed by a joint venture of Oman Oil (40% stake), Abu Dhabi National Energy Company PJSC (40%) and Rio Tinto Alcan (20%), the company saw high initial investment and boasts a 1,000MW power station and world's longest single potline. It is also the first smelter in the world to implement Rio Tinto Alcan's benchmark AP36 smelting technology.

Henk Pauw, CEO, told local press in Oman that the rough expenditure for the expansion should be higher than the $4bn originally mooted, but that it depended on the gas supply.

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He added that the Ministry of Oil & Gas was negotiating with British oil company BP as to the cost of the natural gas to power the facility. “Until that is concluded, it is very hard for me to speculate on what it means for us,” he told Times of Oman.

Sohar Aluminium, which produces aluminium ingots and sows, spends 56% of its cash in the domestic market, which stood at $50 million last year. It has awarded a number of tenders this year for the development of its facilities, including to Al Makhadram National Associated and Petron Gulf.

Company expansion would come at the same time that Oman undergoes a wider industrial revolution to develop its manufacturing capabilities. This includes significant projects to develop the ports of Salalah and Sohar to expand logistics services and the possibility of manufacturing.