Latest news with #OmanMineralsTradingCompany
Observer
27-05-2025
- Business
- Observer
Oman launches national company to regulate mineral exports and boost revenues
MUSCAT: In a significant move to optimise the economic potential of its mineral wealth, the Ministry of Energy and Minerals has announced the establishment of Oman Minerals Trading Company as the central authority to oversee the marketing and export of mineral resources from the Sultanate of Oman. The initiative is formalised through Ministerial Resolution No 18/2025, issued by Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals. The resolution marks a key step in reforming the mineral management system and aligns with Oman Vision 2040's goal of sustainable, diversified economic growth. It aims to address existing structural challenges in the mineral sector — such as fragmented marketing, price instability and the dominance of intermediaries — by centralising export control under a national entity. KEY PROVISIONS FOR TRANSPARENCY AND MARKET STABILITY Under the new regulation, gypsum and chrome ore exports will be strictly monitored. Export of raw chrome ore will require a minimum concentration of 36%, while processed ore can be exported at any concentration upon Ministry approval. Local market needs will be prioritised before exports are approved, a policy that supports domestic manufacturing and ensures stability in local supply chains. The regulation also seeks to standardise contracts, enhance negotiation leverage with international buyers and improve pricing transparency for Omani ores — factors that have historically impacted competitiveness despite strong production levels. In 2024 alone, Oman produced about 14 million tons of gypsum across 15 licensed sites and 300,000 tonnes of chrome ore from 29 licensees. However, revenue gains have been diluted by inconsistent marketing and a lack of pricing discipline. STRATEGIC ROLE OF OMAN MINERALS TRADING COMPANY As a subsidiary of Minerals Development Oman, the new trading firm will manage exports, unify contract terms, enforce quality specifications and negotiate international sales. This professionalised approach is expected to lift the average price of Omani minerals and boost national income. Dr Salah bin Hafiz al Dhahab, Director General of Investments at the Ministry, described the move as a 'pivotal milestone,' adding that it enables the government to streamline the export process, reduce price manipulation and better monitor sectoral returns. The decision is also designed to: a. Improve the efficiency of logistics and export operations. b. Increase transparency and curb rent-seeking behaviour. c. Support SMEs involved in supply chains. d. Create more jobs and promote local content through in-country value (ICV) initiatives. The resolution falls under the Ministry's broader 'Majd' initiative, which aims to evaluate and enhance local content across the energy and minerals sectors. Companies will be required to submit ICV plans and support domestic manufacturing activities that add value to raw mineral exports. ONE-YEAR TRANSITION PERIOD To ensure a smooth shift, a one-year transitional period has been granted. During this time, companies can conclude existing contracts and adapt to the new system. The Ministry also plans to conduct orientation and training workshops to support stakeholders and build internal capacity. Dr Al Dhahab emphasised that the transformation reflects the Ministry's broader institutional reform following the merger of energy and minerals portfolios. 'With clearer policies, enhanced geological databases and improved investor privileges, we are creating a transparent and regulated business environment that meets the goals of Oman Vision 2040,' he noted. By streamlining mineral exports and empowering a centralised entity, Oman aims to attract more reliable investments, strengthen national industries and secure better returns from its abundant mineral resources.
Muscat Daily
27-05-2025
- Business
- Muscat Daily
Oman to set up new state-owned firm to manage mineral resources and exports
Muscat – Oman's Ministry of Energy and Minerals on Tuesday issued a decision to establish a national company named the Oman Minerals Trading Company (OMTC). The company aims to regulate the marketing and export of minerals within the sultanate and enhance the local added value of the country's natural resources. This initiative forms part of a comprehensive reform of the mineral resource management system, aiming to integrate economic exploitation with environmental and social sustainability, according to a statement issued by the Ministry of Energy and Minerals. The decision also includes provisions for the regulation of gypsum and chromite ore exports, prioritising the fulfilment of local market demand before allowing any overseas sales. Furthermore, it mandates that the concentration of exported chromite ore must not be less than 36%. However, the export of processed chromite at any concentration will be permitted, subject to approval by the ministry. This move is intended to tighten control over marketing operations, enhance Oman's bargaining power in international markets, and promote greater transparency in the pricing of Omani mineral ores. This development comes in response to structural challenges facing the minerals market -particularly the proliferation of intermediaries and the lack of specialised marketing mechanisms. These challenges have contributed to a decline in prices, despite increased production. Currently, there are 15 valid mining licences for gypsum ore, with production reaching approximately 14mn tonnes in 2024. Meanwhile, there are 29 valid licences for chromite ore, with output during the same period totalling around 300,000 tonnes. These figures underscore the abundance of mineral resources in the sultanate and the necessity for a unified institutional management framework to ensure optimal utilisation and marketing, thereby contributing to increased national revenue. Oman Minerals Trading Company, a subsidiary of the Oman Minerals Development Company, will be responsible for centrally managing exports, standardising contracts and specifications, and conducting negotiations with international buyers in accordance with professional standards. These measures are expected to increase the average price of exported raw materials and boost the nation's income. The new regulations aim to reduce price manipulation, improve the efficiency of transportation and export operations, enhance market transparency, and enable the government to better monitor rents and returns. The decision is also expected to support local manufacturing and employment opportunities, particularly for small and medium-sized enterprises (SMEs) involved in supply chains. It will foster a business environment based on efficiency, integration, and long-term economic sustainability. The ministry has granted a one-year transition period for companies to terminate existing contracts and adapt to the new marketing mechanism. It also plans to organise induction and training sessions for stakeholders, alongside the training of specialised personnel to manage sales and negotiation processes under the new framework.
Times of Oman
27-05-2025
- Business
- Times of Oman
National company established to regulate, market mineral exports
Muscat: The Ministry of Energy and Minerals has issued a decision to establish a national company in the Sultanate of Oman, named the "Oman Minerals Trading Company," to regulate the marketing and export of minerals and enhance in-country value (ICV) from natural resources. This move is part of a comprehensive reform path to restructure mineral management and achieve integration between economic utilisation, environmental sustainability, and social responsibility. The decision also regulates the export of gypsum and chrome ores, prioritising domestic market needs before considering export operations. Additionally, exported chrome ore must have a minimum concentration of 36%, while processed chrome may be exported at all concentrations subject to ministry approval. The decision aims to tighten oversight of marketing operations, strengthen Oman's negotiating position in global markets, and enhance transparency in pricing Omani ores. This move responds to structural challenges in the mineral market, including the proliferation of intermediaries and the lack of specialised marketing mechanisms, which have led to declining prices despite rising production volumes. Currently, there are 15 active gypsum mining licenses, with production reaching approximately 14 million tonnes in 2024, while 29 chrome mining licenses produced around 300,000 tonnes during the same period. These figures reflect the abundance of mineral resources and the need for a unified institutional framework to ensure optimal utilisation and marketing that maximises national returns. The 'Oman Minerals Trading Company'—a subsidiary of Minerals Development Oman (MDO)—will centrally manage exports, standardise contracts and specifications, and negotiate with international buyers under professional standards to raise average export prices and increase national revenues. The new regulatory framework is expected to reduce price manipulation, improve logistics and export efficiency, enhance market transparency, and enable better government oversight of revenues. It will also boost local processing and employment opportunities, support small and medium enterprises (SMEs) in supply chains, and foster a business environment based on efficiency and integration. This step aligns with the Ministry of Energy and Minerals' efforts to enhance ICV by requiring companies to adopt clear plans for increasing local content, localizing supply chains, and supporting downstream industries that add value to raw minerals before export. It falls under the "Majd" initiative launched by the ministry to consolidate and evaluate ICV efforts in the energy and minerals sector. The ministry has granted a one-year transitional period for companies to conclude existing contracts and adapt to the new marketing mechanism. It also plans to organise awareness and training sessions for stakeholders while developing specialised cadres to manage sales and negotiations under the new framework. Dr. Salah bin Hafeedh Al Dhahab, Director General of Investments at the Ministry of Energy and Minerals, stated that this decision marks a pivotal milestone in developing Oman's mineral sector, reflecting the ministry's commitment to optimising national resource management through export chain restructuring and the establishment of a dedicated national trading company. He added that the decision addresses past market challenges, including lack of coordination, multiple intermediaries, and price fluctuations, which weakened the competitiveness of Omani products in some markets despite high production volumes and ore quality. The company will consolidate quantities, standardise specifications, and negotiate professionally with global markets, enhancing the marketing value of Omani products and delivering higher returns for both the government and investors. Prioritising domestic market access to ores before export is a strategic step to support downstream industries and stabilise industrial supply chains within Oman. He noted that this decision is part of the institutional transformation led by the Ministry of Energy and Minerals since merging the energy and mining sectors. The ministry has developed policies, improved investment frameworks, and implemented unified governance systems, supported by national geological databases, ICV plans, and streamlined investor licensing in a transparent regulatory environment—all aligned with 'Oman Vision 2040' goals to build a diversified, knowledge-driven economy based on optimal natural resource utilisation. He expressed confidence that this regulation will foster a more reliable investment environment, support national enterprises, unlock viable industrial and commercial partnerships, enhance employment, and uphold occupational health, safety, and environmental (HSE) standards—positioning the mining sector as a vital contributor to the national economy. Eng. Matar bin Salim Al Badi, CEO of Minerals Development Oman (MDO), stated that this mandate represents a strategic step to enhance supply chain efficiency, unify marketing efforts, and ensure price transparency and fairness—aligning with Oman's aspirations to maximize economic returns from its natural resources. He explained that the company is developing an integrated system covering registration procedures, purchase contracts, globally benchmarked pricing mechanisms, and logistics services to ensure supply reliability and shipping flexibility. Prioritising domestic market access and ensuring private sector readiness for the new model are key focuses. He added that the company will launch a supplier and buyer registration programme starting in Q3 of 2025, ahead of the system's official activation in May 2026. He emphasised early engagement with market stakeholders and invited producers, investors, and trade partners to explore collaboration opportunities under the new framework—whether in exports or industrial partnerships for local processing and promising investment prospects. He affirmed that this approach represents a qualitative leap toward enabling Oman to maximise the mining sector's potential and strengthen its competitive position in global markets.
