Oman’s Sohar Port and Freezone has entered into an agreement with Gulf Alloys and Metals to set up a low carbon ferrochrome alloy production facility at the freezone, said a report.

The project will be capable of manufacturing of 10,000 mt per annum and is a part of the efforts of Sohar to bring in new global investments, added the Times of Oman report.

The OR3.5 million ($9 million) investment will occupy 37,000 sq m of land at Sohar Freezone and will utilise chrome ore and calcined lime, sourced from local mines and plants, respectively, it said.

The agreement was signed between Dr Mohammed Nasser Al Zaabi, chairman of the Board of Sohar Port and Freezone and Appala Satyanarayana Varma, owner of Gulf Alloys and Metals, representing the company.

The mining industry is one of the most promising sectors in the sultanate. Therefore, there is great interest in developing it to increase its contribution to the GDP.

In line with this framework, Sohar Freezone seeks to attract new investments capable of providing local added value in this field, such as the upcoming ferrochrome alloy production facility.

This new project is expected to pave the way for more investments in the future.

This facility will serve as a positive step towards enhancing in-country value, by boosting the competitiveness of Sohar Freezone in bringing in new investments linked to the downstream of these industries, added the report.