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NMC mulls public listing to achieve growth ambitions

By Conrad Prabhu MUSCAT -- Northern Minerals Co LLC ( NMC ) is weighing plans to go public as part of an ambitious expansion drive that promises to catapult the company into the top echelons of Oman's rapidly expanding mining and mineral processing industry.
According to Jamal Said Rajab al Ojaili, Chairman of Northern Minerals Group of Companies , the move, if eventually crystallised, has the potential to impart robust impetus to the NMC 's strategy for the expansion, diversification and modernisation of its mining and processing operations.
"As NMC is embarking on a major expansion of its activities, which requires huge investments, the Board of Directors is currently looking into the possibility of changing the legal entity of the company to a public shareholding entity, to be followed by the flotation of an Initial Public Offering (IPO)," the Chairman commented.
Speaking to the Observer, Jamal al Ojaili, who is a well-known entrepreneur and Board Member of a number of reputable organisations in the Sultanate, said the company's planned expansion drive will contribute significantly to the goal of developing the country's promising mining sector. Besides, the expansion will also generate employment opportunities to large numbers of Omanis, as well as spur industrial and socio-economic growth in various parts of the country, he added.
In operation since 2007, NMC was established by the late Said Mohammed Rajab al Ojaili, a prominent Omani businessman, who had a vision to introduce world-class mining activities in the Sultanate. Building upon that legacy are members of the Ojaili family as major shareholders of Northern Minerals Group of Company. Adil Said Mohammed al Ojaili is the Operational Consultant of the Group.
NMC is already a well-established player in Oman's mining sector. The company operates quarries rich in high purity white limestone in Wadi al Burga near Sohar. NMC has installed a modern plant at site with a capacity to produce 2,500 tonnes per day of limestone in various grades and sizes.
According to Paul Shajimon, Group General Manager of Northern Minerals Group of Companies , demand for limestone products is escalating not only across Oman, but the wider Gulf region and Indian sub-continent as well. Omani limestone is currently exported to India, UAE, and other Gulf states.
"Limestone is used for various applications: metallurgical processes, production of quick lime and hydrated lime, glass manufacturing, drilling mud, production of calcium carbonate, animal and poultry feeds, desalination and water treatment, construction industry, soil stabilisation, asphalt mixes among other uses," Shajimon explained.
NMC is also engaged in the extraction of chrome ore from its quarries in Dakhiliyah region. Oman is one of the major suppliers of chrome ore to China and India, where the mineral is used in the production of ferro-chrome, alloy and stainless steel.
In line with its goal to diversify its mineral-based investments in the Sultanate, NMC has made a major foray into the mineral processing sector. Industrial Minerals Co LLC (IMC), a new subsidiary set up by the Group, owns and operates the country's first calcium carbonate manufacturing plant currently in operation in Sohar Industrial Estate.
Calcium carbonate products are in great demand in the Sultanate as well as in the neighbouring Gulf countries, says Shajimon. "Micronized calcium carbonate has wide applications in paint manufacturing, oil drilling and as industrial fillers. Coated calcium carbonate is used in PVC, plastic and rubber products. IMC's products are currently supplied in substantial quantities to consumers in Oman and the UAE. In the near future, we hope to supply to other markets in the region."
Also on the anvil are plans for the establishment of a quick [CaO] and hydrated [Ca(OH)2] lime project with an investment of around RO 6 million. "A study into the feasibility of the project has already been completed, and we are right now in the process of shortlisting suppliers of equipment for a fuel-efficient lime kiln. Government approval for the project has already been obtained," the Group General Manager said. Over the past five years, NMC has invested in modern mining infrastructure, including sophisticated crushing units, high efficiency screening plants, storage silos for bulk products, and logistics support for prompt delivery of materials.
The emphasis on modernisation has paid rich dividends with the company continuing to perform exceptionally well. NMC 's operations have been delivering profits from the inception of the company despite the recent economic downturn, he added.

© Oman Daily Observer 2012

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