Vandana Global plans to set up ferro chrome plant in Oman

Raipur based ferro alloys producer, Vandana Global plans to establish
a 1,20,000 MT/year capacity ferrochrome smelter in Oman, sources have confirmed.

The firm has already signed an agreement with an Omani
chrome ore supplier to guarantee feedstock, and is currently in talks with
representatives of Oman’s Sohar Freezone to obtain land, water and electricity supply
for the new plant which is said to commission by 2014.

According to sources, “To establish a new plant in Oman, it
is essential to have a local partnership with a mining company or a trading company
based in Oman. Mostly companies in Oman go for a 60:40 or 70:30 partnership with
the local company in Oman holding the maximum share”.

Speaking about the raw material source & power he added,
“Chrome ore in Oman is mostly of low grade i.e.it has less than 40% cr ore
content. Moreover, the ore found in Oman is very lumpy with a size of as high
as  300mm & it is difficult to sample such huge lumpy ore. But power cost is cheap in the Sohar Freezone &
that can be a advantage for the upcoming plants.”

Vandana’s investment will represent Oman’s fourth foray into
ferrochrome production, following the 150,000 mt/year joint venture between
local Muscat Overseas Group and India’s Indsil Group, Gulf Mining Materials’
50,000 mt/year plant, and India’s Metkore Alloys and Industries’ 165,000
mt/year smelter.

All are being carried out in Sohar, which aims to establish a
“metals and mining cluster” and already houses Vale’s 9 million mt/ year iron
ore pelletizing plant and Jindal Shadeed’s 1.5 million mt/year DRI plant. 

Although
most ferro chrome will be exported, the Gulf Cooperation Council is projected to
build 2 million mt/year of new stainless steel making capacity in the near
future.