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Antimony ... strategic importance.

Oman antimony project secures $40m loan

MUSCAT, February 17, 2015

A joint venture part-owned by Oman's sovereign wealth fund has signed a $40 million loan deal to finance the construction of an antimony roasting facility in the Gulf state, part of its efforts to diversify the oil-dominated economy.

Strategic and Precious Metal Processing, set up in Sohar Port and Freezone on Oman's northern coast, borrowed the money from Bank Nizwa and plans to complete the construction of the facility within 18-24 months.

Antimony (Sb) is classified as a minor metal, growing in strategic importance. Over 90 per cent of supplies of antimony metal come from China. The European Union, the US and Japanese economies are import dependent on the metal. The main use for antimony nowadays is as a tri-oxide additive in the chemical and plastics industry as a “synthesizer” for flame retardant compounds.

Oman Investment Fund and UK-based Tri-Star Resources own 40 per cent each in the venture and Dubai's Castell Investments has a 20 per cent stake. The project's total cost is $65 million.

With a planned annual capacity of 20,000 tonnes, the plant aims to claim up to 12 per cent of the global antimony market, which is currently dominated by Chinese producers, Tri-Star managing director Emin Eyi told reporters.

"Our production cost in Sohar will be by far lower than China," Eyi said, adding that much of China's production was going to its domestic market, meaning it had a significant potential market for its product.

Eyi said up to a fifth of the plant's output could be sold in the Gulf region, which has a well-developed petrochemicals industry.

It will import raw materials from Canada, Australia, Turkey, and other African and Asian countries.

The Sohar port launched a free zone in 2010 with tax and other incentives to attract companies' logistics and manufacturing operations as part of the sultanate's drive to diversify its economy.

Among other big industrial and infrastructure projects planned or underway are a $3.6 billion plastics production complex to be built in the city of Sohar and a $400 million steel plant in the southern port city of Salalah. - Reuters




Tags: Oman | precious metal |

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