Jordan Signs Historic Agreement for Copper Exploitation

Strategic Insights -

Jordan took a significant step in reviving its mining sector with the signing of its first executive agreement for copper exploitation. Minister of Energy and Mineral Resources, Saleh Kharabsheh, and Hani Ma'touq Asmar, General Manager of Wadi Araba for Minerals, inked the 30-year concession agreement, granting the company rights to mine copper ore in Abu Khushaybah, Wadi Araba region. The deal aims to drive economic growth, create jobs, and maximize value for the national economy through in-country processing of extracted minerals. Crucially, the agreement requires the company to process all extracted minerals in-country before export, ensuring maximum economic benefit.

Key Takeaways:

  • The agreement grants Wadi Araba for Minerals a 30-year concession to mine copper ore across a 48-square-kilometer area in Abu Khushaybah, Wadi Araba region.
  • The concession is tied to the company's compliance with in-country processing requirements, preventing the export of raw, unprocessed ore.
  • Feasibility studies indicate geological estimates of 20-30 million tons of copper ore with commercially viable concentrations.
  • The government will receive a sliding-scale royalty of no less than 3% of gross revenue, increasing with global copper prices, as well as collect all standard taxes estimated at 31% of the company's net profit.
  • Wadi Araba for Minerals will be structured as a Jordanian public shareholding company and required to offer at least 49% of its shares to the public via an IPO.
  • The company is required to provide a performance bond and the Jordanian Parliament must pass a special law to formalize the concession rights.
  • This agreement is part of a broader push by the ministry to develop the country's mining sector, with current negotiations for deals in gold, rare earth elements, copper in Dana, and phosphate in the Risha area.

Statistics:

  • 30 million tons: estimated geological reserves of copper ore.
  • 48 square kilometers: area granted for copper mining.
  • 20-30 million tons: commercially viable concentrations of copper ore.
  • 3%: minimum sliding-scale royalty of gross revenue.
  • 31%: estimated standard taxes on the company's net profit.
  • 30 years: duration of the concession agreement.
  • 49%: minimum shareholding to be offered to the public through an IPO.

Sources:

  • Jordan News Agency (01 Jun 2025)
  • Memorandum of Understanding (2022)