Oman's first mining economic cluster taking shape at Shaleem
MUSCAT: A significant initiative to commercialise the abundant industrial minerals found in Oman's Dhofar Governorate is advancing with the establishment of the Sultanate of Oman's first Integrated Mining Economic Cluster at the Wilayat of Shaleem and Al Hallaniyat Islands on the southeast coast.
The project is being spearheaded by the Public Authority for Special Economic Zones and Free Zones (OPAZ), which earlier this week floated a tender inviting qualified consultancy firms to bid for a contract covering the master planning, detailed design and supervision of Phase 1 of the cluster. Bids are due by July 9, 2025.
The cluster forms part of the ambitious Shaleem Industrial Minerals Block development — an initiative backed by subsidiaries of the Oman Investment Authority (OIA) in collaboration with the Public Establishment for Industrial Estates (Madayn).
Shaleem is home to one of the world's largest deposits of gypsum, a non-metallic mineral widely used in plaster, fertiliser and construction materials, as well as in a variety of chemical compounds. The area also hosts massive reserves of limestone, a key raw material for cement, steelmaking, paper production, water treatment and plastics.
Equally promising is the vast reserve of dolomite, a highly versatile mineral with critical applications across multiple sectors. Industrially, dolomite serves as a flux in steelmaking, a refractory material and a source of magnesium oxide (MgO). It is also used in the glass and ceramics industries for its calcium and magnesium content. In the construction sector, crushed dolomite is used as aggregate in concrete and road base, while dolomite marble is prized as decorative stone. Agriculturally, it functions as a soil conditioner and fertiliser component, supplying essential nutrients to crops. Environmentally, it is used in water treatment and flue gas desulfurisation, while in animal feed and pharmaceuticals, it serves as a magnesium supplement. These wide-ranging applications underscore dolomite's importance in supporting industrial development, environmental protection and food security.
Geological studies by state-owned Minerals Development Oman (MDO) estimate the site contains approximately 960 million tonnes of gypsum (with 97 per cent purity), 1.9 billion tonnes of limestone (99.5 per cent purity) and around 1.3 billion tonnes of dolomite, with a magnesium oxide (MgO) content exceeding 19 per cent.
Given these promising estimates, the cluster aims not only to attract investments in downstream value-added industries but also to leverage Shaleem's strategic location on the Arabian Sea to drive large-scale exports of processed mineral products.
Integrated economic clusters like the one envisioned at Shaleem are expected to add new momentum to Oman's industrialisation and manufacturing goals. According to the Oman Vision 2040 Implementation Follow-up Unit, 'Integrated economic clusters represent a strategic approach adopted globally to accelerate growth and diversify economies. These clusters comprise interconnected industries and sectors within a specific geographic area, sharing value chains, services and products. They provide a structured framework that optimises resource allocation, fostering collaboration and competitiveness among various entities.'
At least four such Integrated Economic Clusters are planned for implementation at key locations across Oman, aimed at harnessing synergies linked to their advantageous geographical position, local natural resources, proximity to overseas export markets; and access to transport and logistics infrastructure. These new hubs are proposed in Najd (Dhofar Governorate), Al Dakhiliyah Governorate, Al Duqm and Suhar, each focused on their respective value propositions around agriculture, tourism, manufacturing and aluminium processing.
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