ABU DHABI, 24 February 2005 — The Abu Dhabi Water and Electricity Authority (ADWEA) announced yesterday its signing of a shareholders agreement with Oman Oil Co. (OOC) and Canadian Alcan Inc. to develop a $2 billion aluminum smelter project in Sohar, Oman.
Construction on the plant, whose first phase will have a capacity of 325,000 tons per annum, will start soon after financial close, expected in the second half of this year, a statement said. The plant, to be based adjacent to the existing Sohar Industrial Area, will be operational by 2008. With completion of the second phase, annual capacity will rise to 650,000 tons.
The Sohar Aluminum Co. was created in September to own and operate the new smelter. ADWEA and the state-owned OOC each own 40 percent and Alcan the balance.