Omani group Raysut Cement Company has announced that its wholly-owned subsidiary, Pioneer Cement Industries based in the UAE, has signed a deal for the development of a limestone mine near Tbilisi in the Eastern European nation of Georgia.
One of the largest producers of cement in the sultanate, Raysut said the agreement which has been inked with SFL International will focus on the production of limestone from a concession owned by Pioneer Cement Industries.
Under the 10-year deal, SFL International will pay a royalty to Pioneer Cement for mining the limestone deposits, stated Raysut Cement in its filing to the Muscat Securities Market.
Last year, Pioneer Cement had announced that it was in the process of setting up an integrated cement plant in Georgia, at an investment of $200 million.
The plant, which will come up near the limestone mines of Tbilisi, will boast a capacity of 1.2 million tonnes per annum, it stated.
The Georgia expansion comes close on the heels of the company’s announcement of signing a land lease agreement and Port of Terminal services agreement with Port of Duqm Company 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.
The Georgia investment 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, said the statement.
One of the largest and among the most modern cement manufacturers in the UAE, Pioneer Cement Industries has a 1.2 million tonne greenfield cement plant at Ras Al Khaimah.
One of the largest producers of cement in the sultanate, Raysut said the agreement which has been inked with SFL International will focus on the production of limestone from a concession owned by Pioneer Cement Industries.
Under the 10-year deal, SFL International will pay a royalty to Pioneer Cement for mining the limestone deposits, stated Raysut Cement in its filing to the Muscat Securities Market.
Last year, Pioneer Cement had announced that it was in the process of setting up an integrated cement plant in Georgia, at an investment of $200 million.
The plant, which will come up near the limestone mines of Tbilisi, will boast a capacity of 1.2 million tonnes per annum, it stated.
The Georgia expansion comes close on the heels of the company’s announcement of signing a land lease agreement and Port of Terminal services agreement with Port of Duqm Company 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.
The Georgia investment 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, said the statement.
One of the largest and among the most modern cement manufacturers in the UAE, Pioneer Cement Industries has a 1.2 million tonne greenfield cement plant at Ras Al Khaimah.
Source Link: www.tradearabia.com
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