Mazoon Mining Company Secures RO104mn Financing for Yanqul Copper Concentrate Production Project

Strategic Insights -

The Mazoon Mining Company, a subsidiary of Minerals Development Oman (MDO), has taken a significant step forward in its Yanqul Copper Concentrate Production Project with the signing of construction and service package agreements with local contractors. The project, which has undergone several preparatory phases, including the assignment of engineering, procurement, and supervision responsibilities to the Canadian firm Lycopodium, has now secured RO104mn in financing from a number of local and regional banks. This financing, which covers approximately 60% of the total project value, marks a critical milestone in the project's implementation phase. The project aims to produce approximately 115,000 tonnes of copper concentrate annually, with a purity of up to 21.5%, based on proven reserves of approximately 22.9mn tonnes of copper ore.

Key Takeaways:

  • The Mazoon Mining Company has secured RO104mn in financing from local and regional banks, including Sohar Islamic, National Bank of Oman, Qatar National Bank, Bank Nizwa, ahlibank, and Ahli Bank Islamic.
  • The project has attracted strong interest from financial institutions, with the offering being more than twice oversubscribed.
  • The construction and service packages include a transportation and logistics services contract with Asyad Group, a contract for the development of the electricity grid and transformer station with Oman National Engineering and Investment Company (ONEIC), and a contract for initial site preparation works with Strabag Oman.
  • The project has undergone several preparatory phases, including the assignment of engineering, procurement, and supervision responsibilities to the Canadian firm Lycopodium and the signing of contracts for the supply of main equipment with Metso.
  • Environmental sustainability is a key focus of the Yanqul Copper Production Project, which will implement a zero-water discharge system and advanced waste management solutions.
  • The project span an area of 20 sqkm and aims to deliver significant social and economic benefits, including job creation, support for small and medium-sized enterprises, and stimulation of the local economy.

Statistics:

  • The project has secured RO104mn in financing from local and regional banks.
  • The financing covers approximately 60% of the total project value.
  • The project aims to produce approximately 115,000 tonnes of copper concentrate annually.
  • The copper concentrate will have a purity of up to 21.5%.
  • The project spans an area of 20 sqkm.
  • The project has a total project value of approximately RO175mn (based on 60% financing cover).

Sources:

  • Oman News Agency
  • Mazoon Mining Company
  • Minerals Development Oman
  • Lycopodium
  • Metso
  • Asyad Group
  • Oman National Engineering and Investment Company (ONEIC)
  • Strabag Oman