Sohar Aluminium Achieves Positive Results in Pandemic Hit 2020
Oman Observer reported that Sohar Aluminium has closed pandemic-impacted 2020 with positive bottom-line results despite a collapse in global aluminium prices on the London Metal Exchange last year. The joint venture, which owns and operates a world-scale smelter in Suhar, described 2020 as an abnormal yea” that sent aluminium prices on the LME tumbling to below USD 1500 per tonne in the second quarter of the year. It said “In spite of difficult market situations, SA concluded the year with positive financial results above Business Plan supported by lower cost of production coupled with an increase in production volume.”
Notwithstanding the challenges posed by the constrained global economic environment, Sohar Aluminium reported record aluminium production last year. Hot metal production rose to 396,929 tonnes, up 1.64 per cent from the previous year’s tally of 390,516 tonnes. Metal purity also reached the highest level in its history at 593.08 ppm of Fe/ tonne of metal.
Sohar Aluminium, set up in 2004 as a greenfield smelter, is a partnership of OQ (40 per cent), Abu Dhabi National Energy Company TAQA (40 per cent) and Rio Tinto (20 per cent). Electricity as the principal energy source for the 390,000 tonne-capacity smelter comes from a 1,000 MW captive power plant located at Sohar Port. The project also has its own dedicated waterfront berth at the port for the unloading of alumina and other raw materials.