Oman’s Sohar Port and Freezone has unveiled a new $19 million ferrochrome smelter, the second of five planned for Sohar, production at which will be led by Gulf Mining Group, a leading producer and exporter of chrome ore.

Inauguration of the site was conducted under the auspices of Dr Ali Al Sunaidy, Minister of Commerce and Industry.

“Investment in the smelter is part of a push to grow our metals cluster; to complement and support iron and aluminium industries at Sohar Port,” said Sohar CEO, Jamal Aziz.

“The metals cluster at Sohar is one of the most fastest growing, with a high economic yield. Studies indicate iron industries and their derivatives have experienced exceptional growth as they continue to strive to meet demand.

“The smelter will also become part of a Freezone that has attracted 26 investment projects since its inception in 2010. With a total value estimated at $620 million, the number of workers engaged in Freezone projects reached 2,400, with 3 times the number of indirect jobs created as a result of procurement contracts signed by local companies to provide services to multinationals,” he added.

More than 30 jobs have been created at the Gulf Mining plant, which will produce ferrochrome primarily for use in producing stainless steel, of which 80 per cent of this compound is ferrochrome. Close to 90 indirect jobs will also be created as a result of production at the plant, and with global ferrochrome and stainless steel output set for growth.

“I would like to take this opportunity to congratulate Gulf Mining Group for this important project, through which a significant value will be added to the natural resources of the Sultanate,” Aziz said.

“Instead of exporting chromite as a raw material to foreign markets, processing can take place locally. I also thank them for their commitment to the development of human resources in the industry, and wish them every success.”

Global production of stainless steel reached 4.8 million metric tonnes in 2014, with China and South Africa the major players in international markets, and since ferrochrome imparts the non-corrosive property to stainless steel, there is a strong positive correlation in the outlook for both industries.

With the outlook for markets in Europe in particular looking positive for 2015, the addition of a second ferrochrome plant at Sohar bodes well in terms of expanding production and firming up interests in EU markets and beyond.

At the same time, dry bulk cargo, including the raw materials required to produce ferrochrome, achieved a growth of 37 per cent at Sohar Port in 2013.

Volumes surpassed 26 million tonnes annually and accounted for half of the 50 million tonnes of cargo handled. In 2014, growth across all cargo types has been similarly impressive, with the port welcoming its first 2,000th ship in a calendar year, and a 13 per cent rise in GRT (gross register tonnage). – TradeArabia News Service