Join Webinar

Business News

Oman’s largest cement plant to come up in Duqm with $435 million investment

Construction work is set to begin on Oman’s largest integrated cement manufacturing facility with an investment of $435 million in the Special Economic Zone (SEZ) at Duqm.

Duqm Cement Projects International LLC (DCPI) is developing the mega project plant with a capacity of 3.50 million tonnes per annum (equating to 10,000 tonnes per day) — an investment that is expected to give impetus to the development of downstream industries.

“The economies of scales resulting from the envisaged capacity of 10,000 Tons per Day coupled with the latest technology would help us in achieving our aim of becoming one of the most efficient cement producers in the region’’, said DCPI in a press statement.

The project aims to contribute to the national objective of making Oman a hub for industrial excellence in the region by virtue of its abundant mineral resources, additives, world class ports, efficient economic zones and strategic location, it further noted.

Seven Seas Company LLC, the lead promoter, has announced the release of the EPC tender to world’s leading equipment suppliers. The Usufruct Agreement has been signed with the SEZ. The results of prospecting for a quarry with limestone reserves allotted adjacent to the cement plant have been very encouraging. All the utility requirements for the project like power and water have been allotted and the environmental clearance for the plant and the quarry obtained, the company stated.

The project will conform to the latest and advanced specifications of environmental standards and is expected to be operational by Q1 2023. This new plant will help to meet local demand as well cater to the overseas markets of India, Sri Lanka and East Africa with the support of a well-equipped and dedicated port facility at the Port of Duqm.

To cater to the export demand, the promoters are planning to install an additional clinkerisation unit once the operations are stabilised. Currently raw limestone is imported by India due to a shortage of limestone in the subcontinent. The project expects to bridge this gap by providing value added clinker, the company said.

“This project will substantially contribute to the twin national objectives of diversifying the economy and productively employing nationals. It is also expected to stimulate a series of downstream opportunities in the building materials sector. It will substantially add value to local resources which are otherwise exported in raw form. The project is also expected to generate 340 direct and 1,000 indirect employment opportunities. A sizable part of this will be nationals’’, it further added.

The project is also expected to contribute to the development of the proposed Mineral Rail project by boosting its economic viability.

The promoters are in the advanced stages of tying-up with strategic investors and in achieving financial closure by the last quarter of 2020.
  • #Oman
  • #Duqm
  • #Investment
  • #Minerals
  • #Economic
  • #Development
JSRS Banner
JSRS Banner