Oman Chromite boosts stake in ferrochrome venture
Published: 04:07 PM,Jul 07,2025 | EDITED : 08:07 PM,Jul 07,2025
Gulf Alloys’ plant in SOHAR Port and Freezone.
MUSCAT: Oman Chromite has increased its equity stake in Gulf Alloys and Metals (FZC) LLC, the operator of a low-carbon ferrochrome smelter at SOHAR Port and Freezone, further strengthening its position in the value-added segment of the chrome supply chain.
The company disclosed last week that the additional investment was funded entirely from internal accruals, underscoring its financial stability and long-term commitment to downstream integration.
The publicly-traded mining firm, partly owned by Minerals Development Oman (MDO), says it anticipates a positive upturn in its financial and operational performance on the back of a number of notable milestones achieved during 2024.
Most significant has been the acquisition of a new mining concession which, upon development, is set to bolster access to new chromite ore deposits and reverse a decline in availability of this key commodity.
“The company’s acquisition of an exploration and mining concession for Area 11-A, located in northern Oman with an area of 1,438 km², represents one of the most significant achievements in its history,” said the Chairman of the Board of Directors.
“This area is expected to help address previous challenges such as the lack of available sites and the depletion of ore reserves in the company’s old mines. Exploration activities have already commenced,” he added in the Directors’ Report for fiscal 2024.
Chromite ore (also known as chrome ore) is processed to make metallic chromium, which is used in the production of stainless steel, in chromium plating and as an alloy in cast iron and steel.
Chromium compounds are also used as colours in paint, ceramics and plastics; and as a catalyst in making chemicals and refining oil. Additionally, it is used as a refractory in furnace linings.
Established by Royal Decree in 1991, Oman Chromite produces metallurgical and refractory chromite ores for a variety of industrial applications. In June 2022, the company entered into a joint arrangement with MDO — a subsidiary of Oman Investment Authority (OIA) — to share the cost of exploration, evaluation and feasibility phases covering the development of two sites at Liwa and Mahadha. MDO holds a 25.4 per cent stake in Oman Chromite.
Gulf Alloys’ ferrochrome smelter, in which Oman Chromite originally held a 20 per cent stake, began operations last year, with a second production line launched in January 2025. The expansion is expected to further bolster Oman Chromite’s earnings.
The company disclosed last week that the additional investment was funded entirely from internal accruals, underscoring its financial stability and long-term commitment to downstream integration.
The publicly-traded mining firm, partly owned by Minerals Development Oman (MDO), says it anticipates a positive upturn in its financial and operational performance on the back of a number of notable milestones achieved during 2024.
Most significant has been the acquisition of a new mining concession which, upon development, is set to bolster access to new chromite ore deposits and reverse a decline in availability of this key commodity.
“The company’s acquisition of an exploration and mining concession for Area 11-A, located in northern Oman with an area of 1,438 km², represents one of the most significant achievements in its history,” said the Chairman of the Board of Directors.
“This area is expected to help address previous challenges such as the lack of available sites and the depletion of ore reserves in the company’s old mines. Exploration activities have already commenced,” he added in the Directors’ Report for fiscal 2024.
Chromite ore (also known as chrome ore) is processed to make metallic chromium, which is used in the production of stainless steel, in chromium plating and as an alloy in cast iron and steel.
Chromium compounds are also used as colours in paint, ceramics and plastics; and as a catalyst in making chemicals and refining oil. Additionally, it is used as a refractory in furnace linings.
Established by Royal Decree in 1991, Oman Chromite produces metallurgical and refractory chromite ores for a variety of industrial applications. In June 2022, the company entered into a joint arrangement with MDO — a subsidiary of Oman Investment Authority (OIA) — to share the cost of exploration, evaluation and feasibility phases covering the development of two sites at Liwa and Mahadha. MDO holds a 25.4 per cent stake in Oman Chromite.
Gulf Alloys’ ferrochrome smelter, in which Oman Chromite originally held a 20 per cent stake, began operations last year, with a second production line launched in January 2025. The expansion is expected to further bolster Oman Chromite’s earnings.