Oman finalizes exploration and mining agreements totaling $500 million
Oman's Ministry of Energy and Minerals has recently inked three significant mining and exploration agreements with two local companies – Gulf Mining Materials Company and Novel Muscat International Company. The combined value of these agreements amounts to approximately $500 million (RO 192 million) [1][2][3][4][5].
The agreements mark a crucial step in Oman’s broader government strategy to diversify its economy, enhance local manufacturing, increase the value of mineral resources, create sustainable jobs for Omani citizens, and reduce dependence on hydrocarbon revenues. The projects are expected to significantly boost Oman’s mining sector and contribute to GDP growth.
Gulf Mining Materials Company has been granted exploration and extraction rights for Concession Area 11-C in Al Buraimi Governorate (northwest Oman), covering 1,089 sq km. This area is known for its ophiolite rock formations and shows promising copper and chromium deposits [1][2][3][4][5]. The first phase, lasting 2-3 years, includes topographical, geochemical, and geophysical surveys, plus drilling and exploratory trenching to assess commercial viability.
Meanwhile, Novel Muscat International Company signed two agreements for Concession Areas 51-G1 (558 sq km) and 51-G2 (30 sq km) in Al Wusta Governorate (central Oman). In 51-G2, the company will build an industrial facility to produce salts and sodium carbonate (soda ash) by using seawater processed in evaporation and drying basins. In 51-G1, it will develop a hydrated lime plant following studies to determine ore locations, quality, and reserve estimates of silica, limestone, and clays [1][2][3][4][5].
These agreements aim to attract "high-quality investments" that can deliver significant economic impact. The projects focus on leveraging the knowledge and technical expertise of specialized companies to expand Oman’s economic base, improve the competitiveness of its products, and raise the mining sector’s contribution to GDP.
In addition, the projects are designed for resource extraction, building downstream industries, strengthening value chains, and creating jobs. The projects are projected to create job opportunities for citizens in the host governorates. Furthermore, they aim to support small and medium-sized enterprises in the supply chain.
These initiatives align with similar efforts across the Gulf region focusing on mining to meet the rising global demand for critical minerals connected to energy transition technologies [1][2][3][4]. The agreements aim to increase the value of Oman’s mineral resources, attract investment, and contribute to the government’s long-term plan to advance sustainable growth.
The new mining and exploration agreements, signed between Oman's Ministry of Energy and Minerals and Gulf Mining Materials Company for Concession Area 11-C, present a promising opportunity for the extraction of copper and chromium deposits, contributing to business growth and finance revenues.
Novel Muscat International Company's agreements for Concession Areas 51-G1 and 51-G2 focus on the development of industries for salts, sodium carbonate, and hydrated lime, enhancing the value of Oman's mineral resources, and fostering energy sector expansion, thereby reinforcing the nation's strategic industry diversification and finance dependence reduction.
