5 days ago
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.
