Jindal Group will increase its investment in Oman to $1b

Indian steel giant Jindal Group plans to increase its investment in Oman to $1 billion (Dh3.67 billion) over the next two years. Naveen Jindal, executive vice-chairman and managing director of the Jindal Steel and Power Ltd (JSPL), told reporters in Sohar last week that the company plans to broaden the scope of its operations in Oman into power generation and mining. He said that future investments would include $400 million spent on the two-phased expansion of its Sohar plant, Oman's first integrated iron and steel manufacturing facility, which was recently acquired from Abu Dhabi-based Shadeed at a cost of $464 million. Expansion phase Jindal announced that a steel melting shop with a capacity to produce two million tonnes of steel per annum will be commissioned by May 2013. "The third phase will include setting up of a seven million tonne capacity pelletisation plant," Jindal said, adding that the plan would depend on the availability of raw material and natural gas. "The [Oman] government has not given any assurance for gas for the third phase," he said in reply to a question. The head of the Indian steel giant was quick to add that the pelletisation project was at an early stage. "It is in the planning stage, but we will keep all the plans ready. The pelletising plant would depend on the availability of iron ore and whether we can get adequate gas," he said.