Oman Signs Exploration and Mining Agreements Worth RO192mn ($500mn)

Strategic Insights -

The Ministry of Energy and Minerals (MEM) has signed three exploration and mining agreements with two companies, Gulf Minerals and Materials, and Novel Muscat International, to boost Oman's mining sector and enhance the value of its mineral resources. The deals, estimated to be worth RO192mn ($500mn), aim to attract new investment in key geological areas and create jobs for residents of host governorates. The agreements also seek to develop advanced industries that support value chains and national expertise.

Key Takeaways:

  • The agreements cover a total area of 1,089sqkm in Buraimi and 1,609sqkm in Al Wusta governorates.
  • The deals focus on the exploration and mining of copper and chromium ore, silica, limestone, and clay deposits.
  • The first agreement grants Gulf Minerals and Materials exploration and mining rights in the 11-C concession area in Buraimi.
  • The second agreement with Novel Muscat International covers concession areas 51-G1 and 51-G2 in Al Wusta.
  • The agreements will lead to the establishment of factories for the production of salts and sodium carbonate (soda ash) in area 51-G2 and hydrated lime in area 51-G1.
  • Exploratory studies will assess raw material locations, quality, and reserves, and focus on developing national talent and attracting foreign investment.
  • The agreements aim to diversify the economy, enhance product competitiveness, and increase the GDP contribution of the mining sector.
  • The deals will also support local small and medium enterprises (SMEs) and provide subcontract opportunities to them.

Statistics:

  • Total estimated investment: RO192mn ($500mn)
  • Area covered in Buraimi: 1,089sqkm
  • Area covered in Al Wusta: 1,609sqkm
  • Total production capacity of ferrochrome predicted by 2026: 7,200 tonnes per month
  • Size of area 51-G2: 30sqkm
  • Size of area 51-G1: 558sqkm

Sources:

  • Ministry of Energy and Minerals (MEM)