Oman’s Ministry of Energy and Minerals is seeking to attract foreign investments, represented by international companies specialised in the field of minerals, which have advanced technologies and capabilities to mine latent mineral resources.
The Ministry emphasised recently that the Sultanate is characterised by the availability of various high-quality mineral ores, distributed across various governorates, to meet the growing demands and requirements of industries, specifically in the construction and advanced technologies sectors.
This helps the sector contribute to supporting the local economy in various possible aspects and nourishing the needs of companies for raw materials.
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The mining sector of Oman provides opportunities for investors, especially those focusing on copper ore – a mineral that has entered the production phase in several locations around the Sultanate – says the Ministry. Though, it notes that some sites are still in the stages of exploration and economic evaluation.
A positive outlook has been maintained for minerals and industrial rocks too, owing to the diversity and large quantities of ore distribution. The Ministry also adds that the proximity of industries near export ports and the possibility of establishing industries revolving around marble, limestone, iron, salt, and dolomite ores can dole out added value to investors.
Such is also the case with gypsum ores for the production of gypsum boards, and the manufacturing of building materials using gabbro rocks or setting up cement manufacturing units.
The Ministry of Energy and Minerals says that it has begun implementing steps to maximise the benefits of these resources through strategic directions and developing the sector’s work system by ways of investing in it to maximise the economic returns from it.
Eng. Saud bin Khamis Al-Mahrooqi, the Director General of Minerals at the Ministry of Energy and Minerals, said: “The Ministry’s direction in the mineral sector in the next stage is to complete the strategic directions that serve the ambitions in terms of developing and strengthening the geological portfolio, digitizing it, raising the volume of investments and promoting them, especially with the emergence of good mineral indicators in the Sultanate, in particular through the Ministry’s identification of 12 mining concession sites for the Oman Minerals Development Company of the Oman Investment Authority.”
According to Eng. Al-Mahrouqi, the Ministry has partnered with organizations in the minerals sector to implement several projects, one of which is to provide accessible sites for bidding on marble ore and building materials (the first package). This effort aims to foster a competitive investment environment for these materials through a transparent, equal, and financially efficient bidding process.
The technical aspect of the project involves streamlining the license-granting process and attracting serious investors to establish actual and sustainable investment opportunities for the sector. It is expected that the initial phase of the project will be completed by the end of the first quarter of this year.
In regards to the economic feasibility study project for “the lower part” of dolomite ore at the Al-Ahqaf Company “Kunooze”, Eng. Al-Mahrouqi explained that the objective of this project is to gradually produce up to 3 million tons of raw dolomite annually. The initial geological survey suggests that the area may contain over 250 million tons of dolomite ore. The implementation of this project is planned to be finished by 2026 AD.
Saud Al-Mahrooqi highlighted the Al-Ghizain mine project, which is an underground mining and processing project for copper ore located in Al-Khaboura of the Al-Batinah North Governorate. He stated that this project is of significant economic value and aims to extract approximately 6.5 million tons of copper ore with a purity of 2 per cent over a span of 6 and a half years. The project has progressed to 21 per cent completion.
Regarding the Shalim mining area development project, it aims to process gypsum, limestone, and dolomite ores for export to the global market initially. The project has progressed to advanced stages in the economic feasibility study. Geological studies indicate the availability of raw materials in large quantities and of high purity within a specified mining area of approximately 3,314 km. The completion of this project is planned for 2026.
With regard to the Naqaa salt project, the Director-General of Minerals at the Ministry of Energy and Minerals explained that the project aims to produce salt with high quality and purity for commercial and industrial uses at the upper and lower levels.
It was also noted that the Mazoon Mining Company is engaged in the development of Block No. 10 in Yanqul for copper and gold ore. Exploration work has resulted in commercial discoveries at multiple sites thus far. The estimated annual production of copper from this project is over 1 million tons and with substantial revenue potential. The project is planned to be completed by 2025, with a current completion rate of 16 per cent.
Regarding the development of the copper mine in Al-Mudhaibi, Eng. Al-Mahrouqi stated that the objective of the project is to extract and utilize copper ore, which will produce concentrate copper that can be sold at a rate of 24 per cent copper per ton in the new processing plant. The project involves approximately 16 million tons of copper, with a 37 per cent achievement rate.
The Director-General of Minerals at the Ministry of Energy and Minerals confirmed that the innovation project in mining is currently undergoing a study and evaluation of the various stages and processes of quarrying and mining for various minerals to enhance the value-add and supply chain through the implementation of innovative tools. The project is expected to be completed in the current year.
