Sohar Aluminum Company signed Sunday the major project agreements and financial close for its aluminum smelter. Among the agreements signed were the major shareholder undertaking agreements with Oman Oil, ADWEA and Alcan, the gas supply agreement, sea water intake and usufruct and subusufruct agreements for the smelter and power plant.
Earlier in the day, agreements were also signed with international and regional banks and financiers who will provide RO. 563.5 million (US$1.4 billion) non recourse term loan facilities with the balance funded by equity from shareholders.
Sohar Aluminium was formed in September 2004. The Company will build a single AP35 pot line, together with associated carbon and casting facilities and a gas fired power station. The 350Kt smelter is expected to start production in mid 2008. Bechtel was appointed the EPCM contractor of the smelter in July this year. The shareholders of Sohar Aluminium are Oman Oil Company, Abu Dhabi Water and Electricity Authority and Alcan . For the first potline Oman Oil and ADWEA each own a 40% share of the company and ALCAN the remaining 20%.
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