'Sohar Aluminium's capacity expansion decision by year-end'

 

 

The capital expenditure of the proposed expansion, which includes a massive captive power plant, is envisaged at slightly higher than $4 billion, Henk Pauw, the company's chief executive, told Times of Oman from Sohar. 

 

 

He spoke to Times of Oman after the company celebrated a new production milestone of one million tonnes of aluminium at Sohar plant yesterday. 

 

 

Pauw said the Ministry of Oil and Gas is in negotiation with British energy giant BP for determining the natural gas price. "Until that is concluded, it is very hard for me to speculate on what it means for us." 

 

 

Sohar Aluminium chief also said that his company is looking at different options or scenarios for the proposed expansion. "We will have some kind of understanding before the end of the year." 

 

 

Sohar Aluminium, which produces aluminium ingots and sows, needs commitment from the government on natural gas availability (to feed its gas-fired power plant) for proceeding with its plans to enhance capacity of its Sohar plant. 

 

 

Ranked as the world's most modern smelter with its own 1,000MW power station, Sohar Aluminium attributes the achievement of its one millionth tonne production milestone to its strategic focus on maximising operating efficiencies, continuous improvement and the dedication of its employees, said a company statement. 

 

 

"We have achieved one million tonne production ahead of schedule and without any lost time injuries during three million hours." 

 

 

Sohar Aluminium was formed in September 2004 to undertake a landmark greenfield aluminium smelter project in the Sultanate. Jointly owned by Oman Oil Company, Abu Dhabi National Energy Company-TAQA and Rio Tinto Alcan, Sohar Aluminium reached full capacity on February 19, 2009 and 30 months later celebrates its 1 millionth tonne produced. In that time, capacity was quickly upgraded from 350,000 tonnes per year to 375,000 tonnes per year. 

 

 

Omanisation 

 

 

Sohar Aluminium also focuses on number important issues outside of its production. Omanisation, which currently stands at 70 per cent of its workforce is a driving force within the organisation. 

 

 

The company's target by 2015 is to be 85 per cent Omanised. The development of its young employees is paramount and with that in mind, Sohar Aluminium has launched a training academy which will give each and every employee the opportunity for further learning. 

 

 

Sohar Aluminium said 56 per cent of its spend is in the local market which equated to $50 million for the year 2010 and a 0.6 per cent contribution to the Oman's gross domestic product. 

 

 

As companies do not work in a vacuum, Sohar Aluminium is committed to working with its local community. To enable this, the shareholders have committed 1.5 per cent of their profits towards corporate social responsibility. 

 

 

Currently, Sohar Aluminium is working together with Oman Oil Refineries and Petroleum Industries (Orpic) and Vale on the formation a foundation that will benefit the greater community for years to come.