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UK firm plans Oman's first nickel pilot plant

UK firm plans Oman's first nickel pilot plant

Observer24-05-2025

MUSCAT, MAY 23
UK-based mining company Knights Bay says it plans to establish a pilot nickel production facility in Oman, marking the initial phase of a major integrated mining project in the Middle East. The pilot plant, which will process 10,000 tonnes per annum (tpa) of nickel, is designed to scale into full production modules capable of producing up to 100,000 tpa.
The facility will be based on mineral resources extracted from Knights Bay's 1,444 km² concession in the Wilayat of Ibra, Al Sharqiyah North Governorate. The project also includes significant deposits of iron ore, cobalt, chrome and silica.
'Knights Bay (KB) is revolutionising the Middle East's mining sector with the development of the first fully integrated Nickel and Iron Ore mining project," said Chris Stava, Senior Executive, in a recent post.
According to Stava, the company is seeking a strategic partner to support the staged development of the project. Key milestones include securing a mining license, mobilising drilling operations, refining engineering and processing for carbon-neutral production; and enhancing corporate governance with the recruitment of independent board members.
Backed by a Royal Decree, the concession offers substantial long-term potential. Stava noted that historical and contemporary studies conducted between 2000 and 2025 estimate over 37 million tonnes of resources and reserves, with an exploration target of more than 1.5 billion tonnes.
Geological exploration has so far focused on approximately 300 km² of the concession, revealing average nickel grades between 1.05% and 1.2% and iron ore grades between 60% and 66%. At full production, the facility is expected to produce up to 112,000 tpa of nickel, 120,000 tpa of iron ore and 5,100 tpa of cobalt.
Knights Bay has already completed drilling for its initial batch of exploration holes in the concession. 'This project holds the potential to play a pivotal role in industries transitioning to clean energy and providing alternative sourcing options for western markets,' Stava said.
The geology team recently concluded Phase 1 of its scout drilling campaign, reporting consistent mineral values across the laterite zones. 'Excitingly, new zones of nickel and cobalt laterites, up to 35 metres thick, have been discovered and sampled, with more details to follow,' added Stava.
Current findings indicate over 95 million tonnes of measured, indicated and inferred resources with average grades of 1.06% nickel, 560 ppm cobalt, 35% iron and 4% chromite. Laterite thicknesses in target zones average 25 metres.
Initial feedstock for the pilot plant will come from 400,000 tonnes of existing mined material with nickel grades between 1.0% and 1.3%; and cobalt levels of around 500 ppm.
The project has also uncovered potential new opportunities, including a borehole with elevated lithium values and a 40-metre laterite sequence capped by a 1.5-metre thick pyrite layer — suggesting possible massive sulphide formation.
Over 3 million tonnes of iron laterite have already been extracted, which opens up the potential for shallow surface mining operations to support future growth. The company also sees potential in supplying iron and nickel products to steelmakers in the Gulf region.
HIGHLIGHTS
The facility will be based on mineral resources extracted from Knights Bay's 1,444 km² concession

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