Alcan agrees to Oman smelter project
Sun Dec 11, 2005
MONTREAL (Reuters) - Alcan Inc. (AL.TO: Quote, Profile, Research) (AL.N: Quote, Profile, Research) said on Sunday it agreed to proceed with the construction of a $1.7 billion aluminum smelter in Oman.
Alcan, the world's second-largest maker of primary aluminum, said it is taking a 20 percent stake in the smelter, which will have an annual production capacity of 350,000 metric tons. Production is expected to begin in the third quarter of 2008.
Alcan's partners in the project are Oman Oil Co., and the Abu Dhabi Water and Electricity Authority.
In June 2004, Alcan, Oman Oil and the electric authority announced their commitment to the Sohar Aluminum Co. which will own and operate the smelter.
The smelter will be based near the existing Sohar Industrial Area, in the Al Battinah Region of Oman. The smelter will have long-term access to a dedicated supply of electricity through the construction of a new Sohar Aluminium-owned 1,000 megawatt power plant.
The smelter's initial scope will be based on a single potline using Alcan's AP35 technology, but there are provisions for adding a second potline, of which Alcan has an option to acquire up to 60 percent, the Canadian company said.
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