OmanObserver_30-06-13

Inside
P 19 Internet overlords close to opening new domains P 24 EU clears Serbia membership talks
P18 P19
P24
www.omanobserver.om
Oman to ramp up quest
for new chromite deposits
By Conrad Prabhu
MUSCAT — Buoyed by the discovery
of dozens of prospective chrome
ore (chromite) sites, the Ministry of
Commerce and Industry is preparing
to embark on the next phase of an
extensive mineral exploration drive
that promises to sustain the low of
feedstock for the country’s rapidly
expanding ferrochrome smelting industry.
As many as 79 locations believed
to hold potentially rich chrome ore
deposits have been identiied by the
Ministry’s Directorate-General of
Minerals along a vast coastal swathe
spanning the wilayats of Shinas and
Sohar. These sites, according to Ministry
oficials, were unearthed during
a detailed survey of the area that concluded
last November.
“In the next stage of this effort, we
plan to extend this survey from the
Wilayat of Sohar south all the way to
the Wilayat of Samayil. Based on pre-
liminary studies conducted so far, as
well as our understanding of the mineral
potential of this region, the outlook
for new and exciting discoveries
remains good,” an oficial said.
In the Ministry’s sights as part of
Phase 2 of the survey is the mineralrich
Oman Ophiolite, a mammoth
geological outcrop believed to hold
an abundance of metallic minerals including
chrome ore.
Chromite reserves have already
been discovered and commercially
exploited in areas of the ophiolite
that extend into the Al Batinah North
Governorate.
Studies conducted by the Directorate-General,
as well as exploration
specialists from BRGM of France,
have also pointed to signiicant inds
in the wilayats of Sohar and Shinas,
the Governorate of Muscat, as well as
Ibra and Samad A’Shan in Sharqiyah
North Governorate. Privately-funded
surveys elsewhere around the Sultanate
have also unearthed evidence
— for the irst time — of potential
deposits in coastal areas of the Wusta
Governorate.
But with the Omani government
slowly putting the brakes on the exports
of raw minerals — with a view
to encouraging investments in mineral
processing and value addition
— the Directorate-General of Minerals
sees the country’s chrome ore deposits
as key to sustaining the growth
of Sohar’s burgeoning ferrochrome
smelting industry. Already four ferrochrome
smelters are in various stages
of development at Freezone Sohar
with an investment of around RO 100
million. To page 18
‘Weak Indian Rupee not hurting
demand for rough diamonds’
LONDON — The relentless fall of the
Indian rupee has not dampened demand
for rough diamonds in India,
by far the world's largest processor
of the stones, the chief executive of
miner Petra Diamonds Ltd said in an
interview. The rupee fell to a record
low of 60.76 to the dollar last week
and is down about 11 per cent since
the start of May.
"We haven't seen any effect...," Petra
Chief Executive Johan Dippenaar
said on Tuesday.
"Indian companies are still strong
buyers, but I don't want to for one
moment say 'no' it will certainly have
no effect."
Petra Diamonds has been holding
an auction in Johannesburg this
week, its last of the inancial year. "We
have not noticed an impact (from the
weak rupee) on the number of Indian
clients attending," company spokeswoman
Cathy Malins said in an
e-mail.
Petra Diamonds, whose customers
are primarily in India, the United
States and China, gets most of its production
from ive mines that it bought
from Anglo American Plc's De Beers
unit, the world's biggest diamond
producer by value.
India imported 31 million carats
of rough diamonds in April-May, up
about 26 per cent from the same period
in 2012, according to data from
the Gems and Jewellery Export Promotion
Council, an Indian trade body.
India processes more than 90 per
cent of the world's diamonds, most of
which are exported.
Petra Diamonds, which has seven
producing mines in South Africa and
one in Tanzania, is also sensitive to
the movement of the South African
rand, which hit a 4-year low against
the US dollar in June.
Like the rupee, the rand is getting
hit by both local economic factors and
demand for dollars as the US economy
recovers, arousing talk that the
US Federal Reserve will soon start to
wind down its stimulus programme.
Dippenaar said the weaker rand
was good for earnings but would add
to costs in the longer run.
"Materials that we use are based
on an international price, like explosives
and diesel; that's all linked to
oil price. (The weak rand) obviously
drives up those costs so it's a bit of a
double-edged sword," he said.
However, Dippenaar said he was
more concerned about markets overreacting
to last week's comments by
the Fed, which hinted that it would
begin slowing the pace of its bondbuying
stimulus later this year.
"When you see the type of reaction
that we've seen in the market it obviously
creates concern that people's
conidence and mood will be somewhat
subdued," he said.
"But we haven't made any sale
since those announcements so we
will monitor what happens in the
market."
Diamond prices have languished
over the past few years, mainly due to
sluggish demand in developed markets.
Producers are hoping for sales to
pick up as disposable incomes rise in
populous nations like China and India.
"We remain conident that in the
medium term, and especially in the
medium to longer-term, our market
should remain robust because of the
supply to market," Dippenaar said.
"Effectively no new ore bodies
have been found, so it all points to
one thing: tight supply to the market."
The supply of diamonds in the
world remains constrained as no major
deposits have been discovered in
20 years despite billions of dollars
spent on exploration. — Reuters
Sunday
JUNE 30, 2013 | SHAABAN 21, 1434 AH
Inside
Workshop highlights marketing chances
China banking system ‘stable’
WB: No country immune from turmoil
editor@omanobserver.om
MSM eases downtrend,
outlook seen positive
By Samuel Kutty
MUSCAT — While volatility continued to grip the global
markets, the Muscat Securities Market showed some kind
of ease in the inal two sessions of trading last week.
With its better year-on-year performance, analysts are
optimistic that the outlook of the market continues to be
positive.
“There are still positive catalysts for the markets to
perform well,” says an analyst at a local brokerage house.
Long-term investors are conident strong economic
growth and large budget surplus in the country will help
overcome any weakness the market, he says.
"We are at the end of the month, quarter and half. So
here may be an element of... holding off and recovering”,
he says.
Global stock, bond and commodity markets have
been highly volatile since Federal Reserve Chairman Ben
Bernanke had signalled that the US central bank would
soon cut the pace of its stimulative bond buying unless
the economic recovery slows.
As a fall-out, the regional markets too witnessed partial
sell-offs.
On the inal day of trading on Thursday, the MSM30 index
closed at 6,333.98 points, up by 0.19 per cent. Gulf Investment
Services was the most active in terms of volume
as well as turnover.
Ominvest was the top gainer for the day to close up by
8.98 per cent while Al Shurooq Investment was the top
loser for the day and closed down by 10.00 per cent.
A total number of 1,320 trades were executed in the
trading session generating turnover of RO 6.31 million
with over 24.95 million shares traded.
Of the 45 traded stocks, 16 advanced, 14 declined and
15 remained unchanged. At the session close, GCC & Arab
investors were net buyers for RO 63,000 followed by
Omani investors for RO 50,000 while foreign investors
were net sellers for RO 113,000 worth of shares.
With the earning season is set to kick in by the middle
of July, the market is expected to shed the downtrend in
view of anticipated positive results from the companies,
Murdoch
splits empire
into 2 irms
NEW YORK — Rupert
Murdoch split his corporate
empire into two
parts on Friday under a
long-promised plan to
"unlock value" by separating
high-lying entertainment
operations
from struggling publishing
activities.
The split became effective
at the close of
trade in New York, creating
a new group called
21st Century Fox while
retaining the name News
Corp for the publishing
group. Murdoch remains
in charge of both.
The 21st Century Fox
group, which includes
the Fox Hollywood studios
and television entities,
"launches as a
unique force bringing
news and entertainment
to more than a billion
customers every day in
over 100 languages," said
Murdoch.
"Our success will continue
to be rooted in a
deep belief in originality
and a commitment
to empowering creative
minds and entrepreneurs
around the world.
"Our management
teams are the best in
the business and we will
drive growth and shareholder
value by expanding
our existing assets
and brands, while embracing
new opportunities
and technology."
— AFP
said the analyst, adding, “liquidity has been improving for
small and medium-sized companies as well as large ones.
We don’t expect to see this trend changing.”
Except for the industrial sector index, the other two indices
ended up on Thursday.
Financial sector index was up by 0.80 per cent and
closed at 7693.25 points. Ominvest, Oman United Insurance,
National Bank of Oman, ahlibank and Bank Nizwa
increased by 8.98 per cent, 1.26 per cent, 1.12 per cent,
1.04 per cent and 0.91 respectively.
Al Shurooq Investment, DBIH, ONIC Holding, Transgulf
Holding and HSBC Bank Oman declined by 10 per cent,
2.66 per cent, 1.91 per cent, 1.90 per cent and 1.55 per
cent respectively.
In the industrial sector, Oman Fisheries, Al Hassan Engineering
and Al Anwar Ceramic increased by 1.92 per
cent, 0.98 per cent and 0.23 per cent respectively. National
Aluminium, Oman Cement, Galfar Engineering, Oman
Cables and Raysut Cement declined by 1.29 per cent, 1.08
per cent, 0.82 per cent, 0.80 per cent and 0.26 per cent
respectively.
Services sector index, which rose marginally by 0.06
per cent, closed at 3302.08 points. Renaissance Services,
OIFC and Al Maha Marketing increased by 0.50 per cent,
0.38 per cent and 0.02 per cent respectively.
Nawras was the only loser in the sector and was down
by 0.20 per cent to close at 0.490.