Oman's MEM Inks 2 Mining Concession Agreements

The Ministry of Energy and Minerals (MEM) on Wednesday signed two mining concession agreements for the exploration and extraction of copper ore, other ores, and sea salt.

The first agreement was made with Modern Resources Company, granting the right to prospect and mine in concession area No 22-B. The agreement was signed by H E Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals, and Sayyid Khalid bin Hamad al Busaidi, Chairman of Modern Resources Company.

Concession area No 22-B is located in North Sharqiyah Governorate and covers an area of 1,448 sqm. Modern Resources is the first Omani company with an international joint venture to obtain a licence to mine copper in Oman, at the Al Washhi-Al Majazah site in the Wilayat of Al Mudhaibi in North Sharqiyah Governorate.

According to international standards, more than 16mn tonnes of copper have been explored at the project site, with mineable reserves exceeding 10mn tonnes. The agreement stipulates that during the first exploration period of three years, topographical, geophysical, and remote sensing surveys will be conducted, along with geological mapping, geochemical analysis, and the drilling of approximately 27 holes, totalling 4,000m in depth.

The second agreement was signed with Al Baraka Petrochemical Salts Company, granting exploration and production rights for concession area No 62-A. This agreement was also signed by H E Aufi, and Dr Abdul Redha Mohammed Harmati, CEO of Al Baraka Petrochemical Salts Company.

Concession area No 62-A is located in Al Wusta Governorate and covers 46 sqm. The project aims to extract salt from the Lakbi area by evaporating seawater, with a production rate of approximately 4mn tonnes of salt annually.

Several industrial projects are expected to be established under the agreement, including a salt washing and purification plant for industrial salt, a separate salt washing and purification plant for food salt, a magnesium compounds production plant, a sodium sulphate plant, a bromine compounds production plant, and a lithium compounds production plant.

In a statement to Oman News Agency, H E Aufi said that the agreements signed with Modern Resources Company and Al Baraka Petrochemical Salts Company represent significant steps towards maximising the use of local resources, enhancing social responsibility by creating economic opportunities, and positively impacting the lives of citizens.

He highlighted that MEM continues its efforts to strengthen the mining sector as one of the main pillars of economic diversification in Oman, noting that 21 concession agreements for exploration and mining, and two areas for sea salt production, have been signed in recent period, with total investment commitments for exploration amounting to around $86mn. Approximately $46mn has already been spent on exploration activities, which included drilling several wells to depths of up to 500m and carrying out geophysical and geochemical surveys.

The ministry launched six new concession areas through the Taqa digital services platform, located across various regions of Oman and targeting a range of raw materials, including copper, chromium, nickel, silica, gabbro, and kaolin. These initiatives are aimed at boosting local content and supporting manufacturing industries.

H E Aufi added that these efforts seek to localise manufacturing industries by linking upstream mining activities with downstream processing, thereby contributing to vital sectors such as industry, trade, transportation, and ports.