MUSCAT: Port of Duqm has named Omani lender Ahli Bank as its Financial Advisor to help secure the requisite funding for the development of a major steel hub in Duqm.
An agreement to this effect was signed by the two parties on Wednesday. Port of Duqm CEO Reggy Vermeulen inked the pact with Hanaa al Kharusi, GM & Head of Corporate Banking – Ahli Bank, in the presence of key representatives from two sides.
“We are thrilled to share that the Port of Duqm Company has appointed Ahli Bank as the sole financial advisor to raise the required funds for the set-up of a steel hub in Duqm,” said the port in a post on Wednesday. “As the port expands its assets to set up the steel hub in Duqm, this strategic milestone will provide more opportunities for employment and In-Country Value,” it stated.
The appointment of a financial advisor comes on the heels of landmark announcements by a number of local and international companies unveiling plans to invest in large-scale iron and steel projects powered by renewables in and around Port of Duqm. They envision billions of dollars in new investments flowing into the Special Economic Zone at Duqm and its anchor port. The resulting steel hub, combined with the availability of green steel and other low-carbon intermediate products, has the potential to drive the growth of a decarbonized steel-based industry in Duqm.
Leading the line-up of prospective investors in Duqm is Oman-based Jindal Shadeed Iron & Steel (JSIS). Last December, the company signed land allocation pacts with Omani authorities for the establishment of a renewables-powered and green hydrogen-ready steel complex in Duqm with an investment of $3 billion. The centerpiece is a 5 million tonnes per annum green steel mill that will provide high quality, decarbonized steel for the automobile, wind energy and consumer durables sectors, amongst others.
South Korean steelmaking giant POSCO Holdings has also revealed that it is weighing investment in a mega green hydrogen project, alongside a green steel mill, at Duqm. A heavyweight consortium is being assembled to bid for available acreage offered up by the Omani government under a public auction programme for the development of green hydrogen projects in Oman, an official said last December.
Duqm is also a candidate site being weighed by Brazilian-based global mining conglomerate Vale SA for the establishment of a low-carbon steel mega hub – one of three under consideration at key locations around the word. A Memorandum of Understanding was signed to this effect with the Public Authority for Special Economic Zones and Free Zones (OPAZ) last November.
As the main gateway for the handling of all raw materials and finished products associated with the future steel hub, Port of Duqm is gearing up to provide the requisite logistics support to ensure the growth and success of this ground-breaking initiative.
“This is a great step for all of us, and we are thrilled to see such a project happen in Port of Duqm - a successful pairing of Jindal Shadeed Group’s expertise in steel production and Port of Duqm’s logistical prowess,” Reggy Vermeulen, CEO – Port of Duqm, said at the signing of the Jindal Shadeed pacts last December.
“This green steel project aligns very well with Port of Duqm’s vision to be a green port operating on sustainable and renewable energy sources in line with the Oman vision 2040 to support economic diversification and reduce reliance on the oil and gas sector. This huge project will not only attract foreign investment but also provide work opportunities for local talent,” he further noted.
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