Oman to Harness Critical Minerals to Support Energy Transition

In parallel with its ambitions to jumpstart the growth of a green-hydrogen centric economy, the Sultanate of Oman is also seeking to unlock the potential of its prodigious minerals sector, specifically with the goal of uncovering critical minerals necessary to drive the country’s energy transition. According to Mohsin al Hadhrami, Under-Secretary of the Ministry of Energy and Minerals, the quest for critical mineral resources will enable the cost-competitive adoption of technologies necessary to, on the one hand, accelerate the energy transition, and on the other, unlock localization and value creation opportunities within Oman. Speaking at the Green Hydrogen Summit Oman (GHSO) 2023 forum, which concluded in Muscat last week, the Under Secretary said the decarbonization of certain economic activities will necessitate their electrification. This energy transition will require the adoption of technologies and hardware that utilize certain critical minerals, he noted. While acknowledging that the campaign to harness the country’s critical mineral resources is still in its relative nascent stages, he stressed nevertheless that it is being pursued in a modern and results-driven manner. Data is being digitalized with the goal of making all such information available to investors for their consideration. As the same time, health, safety and environmental standards (HSE) are being embedded in the mining sector, he stated.

A promotional campaign launched by the Ministry, of late, seeks to put the spotlight on Oman’s wealth of mineral resources that can be commercialized to support, on the one hand, the country’s energy transition, and on the other, the growth of the future green hydrogen economy. The list includes: Laterite – a source of nickel and cobalt, which are useful in the manufacture of lithium-ion batteries and electric vehicle batteries, energy storage, and hydrogen production; Chromite (with applications in renewable energy technologies, emission reduction, CCUS and electrolyzer manufacturing; Copper (with application in electrical grids, renewable energy systems, energy storage, and electric vehicles); Silica (with application in PV solar cells, solar panels, energy storage and power electronics); Carbonatite (used in the manufacture of magnets for wind turbines, batteries, energy saving lighting); and Potash: (clean energy technology, renewable energy storage and portable devices). In May, the Ministry signed agreements with local Omani firms for the exploration and development of potash and lithium ores in concessions located in Al Dhahirah and Wusta governorates. In North Al Sharqiyah Governorate, a UK based mining firm is studying the resource potential of a large nickel laterite deposit with cobalt, chrome and iron-ore credits in Block 21 in the Wilayat of Ibra. The company has pledged to explore opportunities for domestic processing of battery minerals, such as nickel and cobalt, to supply the global Electric Vehicle (EV) manufacturing industry.