MUSCAT, DEC 4 - The Sultanate’s first antimony smelter project is set for cold commissioning next month, paving the way for Oman’s elevation into a select grouping of global producers of a strategically important metal widely used in the industrial, electronics and plastics sectors.
Construction of the so-called ‘Oman Antimony Roaster (OAR)’ — a $100 million investment by Strategic & Precious Metals Processing LLC (SPMP) — is nearing completion at Sohar Freezone. When operational going into 2018, the 20,000 tonnes per annum capacity project will account for a significant chunk of total global production of antimony products and position the Sultanate as a world-scale producer.
“SPMP is pleased to confirm that the OAR project remains on budget and on schedule. Cold commissioning is expected to start in January 2018,” said SPMP in a statement. “Commitments to supply concentrates have been received from a number of suppliers to enable the facility to ramp-up to design capacity by the end of 2018,” it added.
Oman-based SPMP is a partnership of Oman Investment Fund (OIF), a sovereign wealth fund of the Sultanate, with a 40 per cent equity interest in the company; Tri-Star Resources, a London-based mining development firm, also with a 40 per cent stake; and DNR Industrials Ltd, part of Dubai-based investment and project development corporation Dutco Group of Companies (Dutco), with the balance 20 per cent.
Last week, SPMP announced that it has begun the quest for a new chief executive for the company following the resignation of Emin Eyi, who as a founder member of the project has played a leading role in progressing this landmark venture. Emin, who remains Deputy Chairman of Tri-Star Resources plc, a 40 per cent equity investor in SPMP, will continue to have “a key role advising the company on their branding strategy for antimony as well as focusing on other uses for SPMP’s current technology”, SPMP said. It named Jason Peers, an existing SPMP Director, as the interim Chief Executive Officer.
At the same time, Tri-Star announced the investment of an additional $6 million via a mezzanine loan to SPMP to enable the further development of the project. Tri-Star said the funds stemmed from the issuance of short-dated secured loan notes to Odey European Inc and OEI MAC.
In addition to the production of over 20,000 tonnes of antimony products per annum, the roaster project is also designed to recover over 50,000 ounces of associated gold from the raw materials.
Feedstock for the project will be sourced from Luxembourg-headquartered Traxys Europe SA, an agreement for which was signed earlier this year. Under the multi-year pact, Traxys — a physical commodity trader and merchant in the metals and natural resources sectors — will supply antimony and antimony gold concentrates for the roaster. The agreement provides SPMP with access to the global expertise provided by Traxys on minor metal concentrate sourcing and supply chain logistics management.
Conrad Prabhu
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