Takamul Investment Company, the downstream investment subsidiary of Oman Oil Company, is actively weighing the feasibility of establishing a ferrochrome smelter project in the Sultanate.

The initiative is part of an expanding portfolio of downstream ventures under various stages of conceptualization design and development by Takamul, spanning the petrochemicals, metals and minerals sectors.

As a first step, Takamul has commissioned well known management, engineering and development consultancy Mott MacDonald to undertake a detailed feasibility study for the development of a major ferrochrome venture that would add value to Oman’s chromite resources. As part of its brief, Mott MacDonald is also evaluating the market scenario, market and financial forecasts and technical parameters surrounding the scope and size of investment in the project.

An official of Takamul said that “We are still in the process of finalizing the study and hopefully in a couple of months we should know what to do. The proposed location of the smelter has not been disclosed yet but as with all ferrochrome related ventures currently under development it is likely that the Takamul project will come up within Freezone Sohar.”

The special economic zone adjoining the industrial port of Sohar currently houses three ferrochrome schemes that are in various stages of construction, with a similar number on the anvil. The downstream opportunities and synergies associated with a cluster of ferrochrome smelters make the free zone ideal for the location of the Takamul project. Also adding to its suitability in this regard is the free zone authority’s ambition to attract investments in downstream value addition activities a vision shared by Takamul as well.

Gearing up to launch production in the Q1 of 2013 is a 75,000 tonnes per annum smelter promoted by Al Tamman Indsil Ferrochrome LLC. Also under development is a 50,000 tonne per annum smelter planned by Gulf Mining Materials Company one of the largest chrome ore mining and exporting companies in the Sultanate. India's Metkore Alloys & Industries has also announced plans to establish a world scale 165,000 tonne per annum capacity ferrochrome smelter project.

Set up in 2008, Takamul is a start up company with the main objective of developing, promoting and investing in Greenfield value added projects in three primary sectors downstream petrochemicals, metals and mining in order to produce finished and semi finished products which can further be utilized to produce finished products by local investors.

Last month, the company unveiled plans for the development of around 10 new projects that will see further value addition to new and existing ventures in the petrochemicals, metals and minerals sectors. Total investment in the projects in question is envisaged at between USD 500 million and USD 1 billion. They are among some 30 projects that are in various stages of conceptualization and study.