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MUSCAT – Omani listed firm Raysut Cement Company SAOG, which is the largest producer of cement in the Sultanate, has announced that its wholly-owned subsidiary, the UAE based Pioneer Cement Industries, has signed a deal for the development of limestone mines in Georgia in Eastern Europe. Raysut Cement said in a filing to the Capital Market Authority that deal, signed by Pioneer Cement with SFL International, will focus on the production of limestone from a concession owned by Pioneer Cement. Under the deal, spanning a 10-year timeframe, SFL International will pay a royalty to Pioneer Cement for mining the limestone deposits.
Last year, Pioneer Cement announced that it is in the process of setting up a 1.2 million tonnes per annum capacity integrated cement plant in Georgia. Pioneer Cement owns concession to limestone mines in Georgia that will provide the key raw materials to this project. Georgia provides Pioneer Cement an opportunity to diversify from the Middle East into a market with large infrastructure growth and shortage of clinker and high-quality cement, the company had said in a statement. The plant will be located near Tbilisi, adjacent to the limestone mines. The value of the project is estimated at $200 million.
The Georgia expansion of Raysut comes close on the heels of the company’s announcement of the signing a land lease agreement and Port of Terminal services agreement with Port of Duqm Company SAOC for building a new grinding unit in Oman at an investment of $30 million. The Duqm plant is being set up as part of the company’s aggressive expansion strategy in the local and regional markets. Last year Raysut also joined hands with MSG Group in East Africa to set up a $40 million cement grinding unit in Berbera, Somaliland as well as acquired Sohar Cement Factory LLC at a value of $60 million.
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