Freezone Sohar, which signed a lease agreement with Gulf Mining Materials Co (GMM) for a ferro-chrome smelter on Wednesday, is expecting to sign agreements with two more companies for ferro-chrome by the end of next month.
The free zone authority, which has invested nearly US$70mn for the civil infrastructure development of the 500-hectare first phase, has received strong interest from a number of other companies to set up mineral and metal clusters, according to Neelima Vyas, chief operating officer of Freezone Sohar.
Speaking to reporters on the sidelines of the lease-agreement signing ceremony, Vyas said the authority has signed land-lease agreements with 14 companies to date, of which five firms have already started construction.
She said, "Though the tenants are a mixed basket of industries, we have seen very good interest for metal and mineral clusters. We are expecting to sign two more ferro-chrome companies by next month. So far, we have signed agreements for 60 hectares of land and expect to reach 150 hectares by the year-end."
"We have received positive interest from about nine or ten companies looking at ferro-chrome investments. Our criteria for selecting investors for phase one are based on the desire to achieve balance between demand and supply, and availability of power," she added.
"This year we anticipate investments in logistics, warehousing and distribution and also in light and medium manufacturing in metals and minerals.
"Our anticipation is that the first phase will be totally occupied in the next two-three years," Vyas said.
H E Sheikh Sa'ad bin Mohammed al Mardhouf al Sa'adi, chairman of the board of Port of Sohar, Jamal T Aziz, CEO of Freezone Sohar, and Abdulla Ahmad Sulaiman al Hadi, chairman of GMM, were the signatories to the agreement.
GMM, the largest chrome ore mining and exporting company in the sultanate, will set up a ferro-chrome smelter with a capacity of 50,000mn tonnes per annum at the free zone. The project, which is expected to be completed within 12-14 months from the start of construction, will involve a total investment of US$30mn.
© Muscat Daily 2012
