Talks over the Omani smelter have reached an advanced stage, with discussions centred on a possible acquisition of stakes held by existing shareholders. Sohar Aluminium is owned by OQ, Abu Dhabi National Energy Company and Rio Tinto, with OQ and TAQA each holding 40 per cent and Rio Tinto holding 20 per cent. Oman is expected to seek continued strategic influence over the asset, given its role in the country’s industrial diversification plans.
EGA’s interest comes as supply chains across the Gulf have been forced to adapt to disruption around the Strait of Hormuz. The company had to shut about 60 per cent of its roughly 2.5 million tonnes a year smelting capacity in the United Arab Emirates after an Iranian attack in late March. It has since used Sohar port on the Gulf of Oman to move aluminium and raw materials after its usual shipping route through the strait became unreliable.
Sohar’s appeal lies in its geography as much as its industrial base. The port sits outside the Strait of Hormuz, giving producers access to the Arabian Sea and wider export markets without depending entirely on the contested waterway. For an aluminium producer whose business relies on steady flows of alumina, carbon products and finished metal, that location has gained strategic value.
Sohar Aluminium operates Oman’s only primary aluminium smelter, with annual capacity of about 390,000 to 400,000 tonnes. Its site includes a captive power plant and port facilities, giving it a level of integration that fits EGA’s preference for assets where energy, logistics and technology can be aligned. The company supplies aluminium to downstream manufacturers and export customers, while supporting Oman’s ambitions to expand industrial activity around Sohar.
EGA is jointly owned by Mubadala Investment Company and Investment Corporation of Dubai. The group is one of the world’s largest producers of premium aluminium, supplying more than 400 customers in over 50 countries. Its 2025 sales reached 2.83 million tonnes of cast metal, supported by favourable aluminium prices and demand from transport, construction, packaging and renewable-energy supply chains.
The move would extend EGA’s expansion beyond its home base at a time when aluminium markets are tightening. Benchmark aluminium prices on the London Metal Exchange climbed sharply after the Iran war disrupted Gulf production and shipping. Physical premiums in Europe also rose as buyers faced higher freight costs, longer delivery times and concern over supply security from Middle East smelters.
A stake in Sohar would not immediately replace lost production in the United Arab Emirates, but it would give EGA a stronger position in Oman and a practical hedge against future chokepoint disruption. It could also create scope for operational cooperation, shared procurement, technology deployment and stronger bargaining power with customers seeking reliable low-carbon and value-added aluminium supplies.
Rio Tinto’s involvement adds another dimension. The mining group has long-standing experience in aluminium technology and raw-material supply. A sale of its stake, if agreed, would mark a shift in its exposure to the Gulf smelting sector. TAQA’s position is also significant because it links the asset to Abu Dhabi’s wider energy interests, making the structure of any deal politically and commercially sensitive.
Oman is likely to weigh the benefits of new investment against the need to retain control over a flagship industrial asset. Sohar Aluminium has been central to the country’s strategy of building manufacturing capacity beyond oil and gas. The smelter supports downstream aluminium fabrication, logistics activity and skilled employment, making any ownership change a matter of wider economic policy.
For EGA, the talks also reflect a broader industry trend. Aluminium producers are reassessing where capacity is located, how power is secured and whether export routes can withstand geopolitical stress. Smelters are energy-intensive and capital-heavy, so access to stable electricity, dependable ports and predictable regulation often matters as much as headline production capacity.
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