Oman’s Sohar Aluminium Company signed a deal with US firm Bechtel to build a $2.2 billion aluminium smelter project in the north of the country.

The Omani company said in a statement that construction of the 325,000 tonnes-per-year facility, part of a project, which also includes desalination and electricity plants, would begin before the end of the year.
The smelter is expected to start production in 2008.
Tony Kinsman, Sohar Aluminium’s CEO, said the firm would borrow up to 55 per cent of the project’s cost. He gave no further details.
The smelter project, expected to contribute 2 per cent to Oman’s gross domestic product, is part of a drive by non-Opec oil producer Oman to wean is economy off crude sales.
It would also further boost aluminium production in the Gulf Arab region, already home to major smelters Aluminium Bahrain and Dubai Aluminium which have a combined capacity of more than 1.5 million tonnes.
Sohar Aluminium is a joint venture of the state-owned Oman Oil Company and Abu Dhabi Water and Electricity Authority (Adwea), each holding a 40 per cent stake. Canada’s Alcan owns the remaining 20 percent.
A joint venture of Canada’s SNC Lavalin and Murray & Roberts Engineering of South Africa had also bid for the project.
Bechtel was also involved in another big smelter project in the Middle East. The new Line 5 of the Aluminium Bahrain (Alba) smelter will be officially opened in September, increasing that plant’s capacity by 60 per cent.
Founded in 1898, Bechtel is one of the world’s premier engineering, construction, and project management companies. Its 40,000 employees are teamed with customers, partners, and suppliers on a wide range of projects in nearly 60 countries.