The venture which will be based in Sohar industrial area, is 40 per cent owned by OOC, 40 per cent by Adwea and 20 per cent by Alcan, the statement said.  Alcan will also have the option to acquire up to 60 per cent of a second potline, which would produce an additional 330 kilotonnes per annum of aluminium.

The agreement provides that Alcan would license its smelter technology and take a substantial role in the construction and operation of the smelter while Adwea would play a substantial role in the development of the captive power plant.

"We are pleased to participate jointly with these two dynamic partners in a project of this nature and we are confident that it will be another milestone in project finance similar to all our recent projects," said Shaikh Diab bin Zayed Al Nahyan, chairman of Adwea.

"We are delighted that Alcan has decided to participate in the project thus further complementing the project's shareholding group of Adwea and OOC," said Maqbool Ali Sultan, Oman's minister of commerce and industry and OOC chairman.  The 1.5 million square metre-project, he added, meets the Omani government's objectives in diversifying the economy, creating job opportunities, encouraging foreign investment, and laying the foundation for future downstream industries.  "The project would offer Alcan an excellent opportunity to enhance its position as a leading low-cost aluminium producer and create further value for our metal group. It will utilise Alcan's most advanced version of its highly efficient AP30 technology," said Cynthia Carrol, CEO of Alcan.