Industry

Oman: Sohar generates interest

The Omani government's efforts to attract significant international investment to the industrial port of Sohar appear to be paying off, prompting the Sohar Industrial Port Company (SIPC) to announce plans to seek an additional US$2.5 billion of investment over the next five years. The additional investment is being sought for the planned special economic zone (SEZ), which will compliment the existing port and industry facilities developed in Sohar since 1999, when the Sohar Industrial Port was inaugurated. In the decade since then, an estimated US$12 billion of investment has been poured into the port area, with facilities including an 116,400-barrels-per-day oil refinery, a US$2.3 billion aluminum smelter and a US$1.6 billion aromatics plant. According to Jamal Tawfiq Aziz, the deputy CEO of SIPC, investment is being sought in a number of fields for the SEZ. "There are projects in plastics, metals and petrochemicals in the Sohar free zone," he told news agencies, adding that, "If foreign companies employ a certain number of nationals, the tax exemption will go further than 10 years." The aim is to create jobs for 25,000 Omani nationals through the SEZ. (source: OBG)

CGS to search for gold deposits in Iraq

Ceska geologicka sluzba, a company based in the Czech Republic that provides geological services provider, will search for gold deposits in Iraq. This autumn, CGS is to sign a three-year contract to search for gold deposits in the Kurdish provinces in the north of Iraq. Within the contract, a CGS 12-member team will provide prospector activities based on a grant of about US$1 million from the Kurdish province government. Iraq is rich in gold, copper, lead and zinc according to CGS. Oil has been the main source of proceeds in the Kurdish provinces so far but their oil export was allowed only in June 2009. The best oil deposits are located in Kirkuk, Mosul and Bajdzi. Phosphates and sulfur are also mined in the north of Iraq in a limited amount.

Egypt mulls US$915m steel project as demand grows

Egypt's state-owned Metallurgical Industries Holding Co. is considering participating in a 5 billion Egyptian pound (US$915 million) project to produce steel rebars. The project would help meet fast growing demand for construction materials in Egypt, especially from real estate development, which is expanding despite the economic slowdown in other parts of the world. "Despite the financial crisis and its consequences, this sector has been able to grow at rates of between 14 and 15 per cent," Mohieldin said. "This is in addition to the increase in the annual demand for residential units, which is now 350,000 to 450,000 units," said Mohieldin, speaking at a meeting of the holding company.

Kuwait: Maximizing efficiency

Kuwait appears to be sharpening its industrial focus, looking to build on its existing strengths while reinforcing existing high-profit revenue earners. Although Kuwait has sought to diversify its economy away from a dependency on oil production, hydrocarbons still form the backbone of GDP, contributing around half of the total. The program of diversification has certainly seen a broadening of the economic base, but directly or indirectly the foundations are still built over the country's energy reserves. This is very much the case for Kuwait's manufacturing industries. Though a wide range of sectors has been fostered, nearly all rely on hydrocarbons either as feedstock or to provide cheap sources of energy to process imported raw materials. Though most of these industries have proved profitable in their own right, and in cases such as steel or cement production directly supporting Kuwait's growth, it now seems that some may fall by the wayside, as focus turns to olefins.

S. Korea Daelim Ind wins US$325m Saudi Kayan deal

South Korea's Daelim Industrial Co Ltd said it had won a US$325 million plant deal from Saudi Kayan Petrochemical Co, a unit of Saudi Basic Industries Corp. The deal for Saudi Kayan involves the construction of high density poly ethylene facilities in the Al-Jubail complex, with an annual capacity of 400,000 tons, Daelim Industrial said in a filing to the Korean stock exchange.

Ascom eyes projects from Saudi to Ethiopia

Egypt's Ascom is eyeing mining projects in a swath of land from Saudi Arabia to Ethiopia, but entered a project in a remote part of Algeria due to its growth potential and encouraging investment environment. The firm, via its subsidiary Ascom Precious Metals (APM), has also bid for gold blocks in an Egyptian tender that closed earlier this month and is exploring concessions in Ethiopia, APM's chief executive officer Ken Crichton said. Ascom, also known as Asec Mining, struck a deal this month which, once completed, will give it a 9 per cent stake in London-listed and Algeria-focused miner GMA Resources.

Vale commits US$484m for Omani Sohar project during 2010

Brazilian conglomerate Vale has announced a payment of US$484 million during 2010 to build its iron ore pelletising plant and distribution hub at the Port of Sohar. The allocation is part of a whopping US$12.9 billion in capital expenditures earmarked by the mining giant during the coming year towards a raft of major projects under various stages of development around the world. The Sohar project encompasses the construction of a pelletising plant with a production capacity of nine million ton per year (Mtpy) of direct reduction pellets and a distribution centre with capacity to handle 40 Mtpy. The total capital investment in the project is US$1.356 billion, with start-up planned early in 2011. Significantly, Vale's Sohar venture ranks among the largest beneficiaries of the company's capex commitments during 2010.