Oman: Plans to build a cement plant in Oman's northern city of Al Duqm are progressing, with the promoters starting to identify limestone mines in the area. The project, which will have a production capacity of 3-4Mt/yr, is aimed at enhancing the availability of cement in the country to meet additional demand arising from major government-supported infrastructure projects and other construction activities.
Sources said that the Duqm cement project will be promoted by a well established 100% Omani firm, which will carry out exports through Duqm port. "It is going to be a very big project. The cement plant will be set up in coordination with the port," said a source.
Presently, the two cement producers in the country, Raysut Cement and Oman Cement, have a combined capacity of 4.7Mt/yr. However, if the capacity of Raysut's Ras Al Khaimah, UAE-based Pioneer Cement Industries is included, the total installed capacity is much higher at 6.4Mt/yr. An important advantage for the proposed cement plant is the rich deposits of limestone in the region.
In a recent forecast Raysut predicted that the construction industry in Oman would grow to US$5bn by 2016 at an average rate of 6%/yr. It supported this assertion with the news that a number of formerly suspended programmes in the United Arab Emirates (UAE) have been reinstated. However, the group added that cement supplies in Oman remain under 'significant' pressure from imports from UAE. It is estimated that UAE has an overcapacity of cement of around 65%. Raysut also expects that demand in Yemen and east Africa will aid the company.
