Minerals Development Oman & Petroleum Development Oman Announce Initiative

Minerals Development Oman (MDO) has announced a groundbreaking research and development initiative in collaboration with Petroleum Development Oman (PDO) to extract valuable minerals from produced water associated with oil wells. In a post by Jamal Al Mandhri, Business Development Manager at MDO, he highlighted that the project will initially focus on extracting salt and bromine, with future plans to recover lithium and other elements. The pilot phase of this initiative, set to take place in Qarn Alam, represents an estimated investment of over $10 million. Encouragingly, lab researchers have already delivered promising results, reinforcing the project’s potential and paving the way for large-scale implementation. The initiative aligns with Oman’s broader vision of sustainable mineral extraction and resource maximisation, strengthening the country’s position as a key player in innovative mining technologies.

MDO, the nation’s largest mining company and an arm of Oman Investment Authority (OIA), has been at the forefront of revitalising the Sultanate of Oman’s mineral sector. The company recently restarted copper concentrate production at its Lasail mine after a three-decade hiatus and is now targeting the Al Baydha copper mine for development by 2025-2026. These efforts form part of MDO’s strategy to enhance Oman’s mining industry and support the global energy transition through critical minerals such as copper. Beyond copper, MDO has demonstrated its commitment to mineral exploration through large-scale projects such as the Airborne Geophysical Survey. This two-year initiative, completed in 2024, mapped Oman’s vast mineral wealth across 21,500 square kilometers. Conducted in collaboration with Canadian firm Sander Geophysics Ltd, the survey identified key metallic minerals, including copper, gold, and chromium, laying the groundwork for future exploration and commercialisation.

The new mineral extraction project with PDO represents a significant step in diversifying Oman’s mineral sector. Produced water, a byproduct of oil extraction, typically requires costly disposal methods. By turning this waste stream into a source of valuable minerals, MDO and PDO are pioneering a sustainable approach that could have wide ranging economic and environmental benefits. With the global demand for lithium surging due to its critical role in battery storage and renewable energy technologies, the project’s future phases hold considerable potential. If successful, Oman could emerge as a key regional supplier of lithium, further reinforcing its role in the global clean energy transition. As MDO continues to invest in innovative mining technologies and resource development, its partnership with PDO exemplifies Oman’s strategic approach to harnessing its natural wealth while supporting economic diversification and sustainability.