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Muscat Daily
7 days ago
- Business
- Muscat Daily
RO192mn agreements to boost Oman's mining sector growth
Muscat – Ministry of Energy and Minerals (MEM) signed three exploration and mining agreements on Tuesday with two specialised companies, with total investments estimated at RO192mn (US$500mn). The deals aim to boost Oman's mining sector, enhance the value of mineral resources and attract new investment in key geological areas. The first agreement grants Gulf Minerals and Materials Company exploration and mining rights in the 11-C concession area in Buraimi, covering 1,089sqkm. The site is noted for ophiolite rocks, and copper and chromium ore indicators. The initial two-to-three-year phase will focus on topographic, geochemical and geophysical surveys, alongside drilling and exploratory trenching. Two agreements signed with Novel Muscat International cover concession areas 51-G1 and 51-G2 in Al Wusta. A factory will be built in area 51-G2 (30sqkm) to produce salts and sodium carbonate (soda ash) using seawater evaporated in basins. Area 51-G1 (558sqkm) will see establishment of a hydrated lime factory. Exploratory studies will assess raw material locations, quality and reserves, focusing on silica, limestone and clay deposits. H E Salim bin Nasser al Aufi, Minister of Energy and Minerals, described mining as a key driver of economic growth in Oman. He said the ministry seeks to attract quality investments that create economic impact not only through mineral extraction but also by developing advanced industries that support value chains and national expertise. 'These agreements reflect our strategy to harness specialised knowledge, boost public-private cooperation and optimise resource use,' he said. 'The projects will diversify the economy, enhance product competitiveness, increase mining's GDP contribution and create jobs for residents of host governorates, while supporting local small and medium enterprises.' Abdullah bin Ahmed al Hadi, CEO of Gulf Minerals and Materials, said the company is expanding its ferrochrome plant in Suhar with international partners to raise production capacity to 7,200 tonnes per month by 2026. He added that the company is focused on operational sustainability, localisation of technology, developing national talent, attracting foreign investment and providing subcontract opportunities to SMEs. Hamoud bin Saeed al Awfi, Managing Director of Novel Muscat International, said the agreements with his company will mark the start of a national manufacturing phase by establishing an integrated industrial complex to convert mineral resources into locally made products, raising added value and creating jobs. 'This aligns with national sustainable development goals and promotes manufacturing growth,' he said. The ministry said these agreements demonstrate Oman's commitment to developing an integrated mining sector that aligns with global industry trends and improves the sultanate's regional and international competitiveness. It is focused on creating a flexible investment environment to attract specialised companies and foster public-private partnerships.
Observer
7 days ago
- Business
- Observer
Oman signs mining deals worth RO 192 million
The Ministry of Energy and Minerals has signed three new exploration and mining agreements with two specialised companies, marking a significant step in strengthening Oman's mining sector, maximising the added value of mineral resources and attracting investment to priority geological areas. The agreements are part of the government's wider strategy to diversify the economy, boost local manufacturing and create sustainable job opportunities for Omanis. The first agreement grants Gulf Mineral Materials Company exploration and mining rights in Concession Area 11-C, located in Al Buraimi Governorate. Spanning 1,089 square kilometres, the concession is distinguished by its ophiolite rock series, with promising indicators of copper and chromium ore deposits. The initial phase of the project, expected to last two to three years, will involve topographical mapping, geochemical and geophysical surveys, as well as drilling and exploratory trenching to determine the commercial viability of mining operations. The second and third agreements, signed with Novel Muscat International Company, cover Concession Areas 51-G1 and 51-G2 in Al Wusta Governorate. In Area 51-G2, covering 30 km², the company will develop an integrated industrial project that includes a plant to produce salts and sodium carbonate (soda ash) using seawater transported to evaporation basins for drying and processing. In Area 51-G1, which extends over 558 km², a hydrated lime production facility will be established. Initial work will focus on identifying the location, quality and reserves of raw materials within geological formations rich in silica, limestone and various clays. Combined, these projects represent a total investment of RO 192 million ($500 million), including the cost of establishing industrial facilities, conducting feasibility studies and implementing mining plans in line with international standards. Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals, stressed that the mining sector is a key driver of Oman's economic growth and diversification. He noted that these agreements reflect the ministry's commitment to attracting high-quality investments that can transform raw mineral resources into advanced manufacturing industries, thereby supporting national value chains and opening new opportunities for local talent. Abdullah bin Ahmed al Hadi, CEO of Gulf Mineral Materials, highlighted the company's track record, including its successful development of the ferrochrome plant in Suhar in partnership with international strategic partners. The facility's production capacity is set to increase to 7,200 tonnes per month by 2026, with a focus on operational sustainability, technology localisation and SMEs participation. Hamoud bin Said al Aufi, Managing Director of Novel Muscat International, emphasised that the projects will contribute to Oman's manufacturing sector by producing high-value products locally, generating skilled employment and supporting sustainable development. The ministry views these agreements as part of its long-term vision to build an integrated, globally competitive mining industry that enhances Oman's position as a regional hub for advanced mineral-based industries.
