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JSW Infrastructure has signed agreements to acquire a 51% stake in Oman’s South Minerals Port Company SAOC.
The company is a newly formed special purpose vehicle (SPV) set up to develop and operate port facilities in Oman.
What’s happening: JSW will make this purchase through its subsidiary, JSW Overseas FZE.
The company has teamed up with Minerals Development Oman and the port authority to join the project. JSW Overseas FZE will become the main partner by buying a little over half of the new project company’s shares, giving it a 51% ownership stake.
The Port SPV will build, own and run a large port with a capacity of 27 million tonnes per year in Oman’s Dhofar region. The entire project will cost $419 million. The new port will mainly ship out minerals like limestone, gypsum and dolomite.
Why it matters: this investment helps JSW move toward its goal of increasing its cargo-handling capacity to 400 million tonnes a year by 2030, up from 177 million tonnes today.
Why Oman: it is located right along major global shipping routes, and its modern logistics and closeness to South Asia, Southeast Asia and East Africa make it a strong location for exporting minerals.
Oman also has large reserves of these minerals, which India needs for industries like steel and cement. The port will act as a key outlet for minerals from MDO’s mines, helping speed up transportation, cut costs and improve regional trade links.
