Tuesday 12 / August / 2025
Muscat: The Ministry of Energy and Minerals has signed three new agreements for exploration and mining with two specialised companies. The aim is to strengthen the mining sector, enhance the added value of mineral resources in the Sultanate of Oman, open new horizons for investors in geologically prioritised areas and boost national production.
The first agreement grants exploration and mining rights to Gulf Mining Materials Company in Concession Area C-11 in Al Buraimi Governorate. This area spans 1,089 square kilometres and is characterised by the ophiolite rock series and indicators of copper and chromium ores. The first phase of the project, which will last for two to three years, will include topographical, geochemical, and geophysical surveys, in addition to drilling and exploratory trenching.
The second and third agreements cover Concession Areas G1-51 and G2-51 in Al Wusta Governorate. The Ministry signed these agreements with Novel Muscat International Company to implement an integrated industrial project in Area G2-51, which spans 30 square kilometres. A factory will be built to produce salts and sodium carbonate (soda ash) through water channels that transport seawater to specialised evaporation, drying, and production basins.
In Area G1-51, which covers 558 square kilometres, a factory will be established to produce hydrated lime. The company will begin with exploratory studies to identify the locations and quality of ores and estimate their reserves in geological formations rich in silica, limestone, and various clays.
The total investment in these projects, which includes factories, studies, and mining plans, is estimated at OMR192 million ($500 million) and in accordance with approved international standards.
Eng. Salim Nasser Al Aufi, Minister of Energy and Minerals, stated that the mining sector is one of the main engines of economic growth in Oman. He explained that the Ministry is working to attract qualitative investments capable of creating a tangible economic impact, not just through the extraction of mineral resources, but also by transforming them into advanced processing industries that support value chains and open new opportunities for national competencies.
He noted that the agreements signed today are part of this direction, as they focus on leveraging the knowledge and technical expertise of specialised companies and enhancing cooperation between the public and private sectors to ensure optimal utilisation of resources.
The Minister pointed out that these projects will contribute to diversifying the economic base, increasing the competitiveness of Omani products, and raising the mining sector's contribution to the GDP. They will also provide meaningful job opportunities for the people of the governorates and wilayats where these projects are located, in addition to providing support services for local small and medium enterprises.
Abdullah Ahmed Al Hadi, CEO of Gulf Mining Materials Company, explained that the company has successfully developed a ferrochrome factory in the Wilayat of Sohar, North Al Batinah Governorate, in alliance with strategic international partners. The aim is to increase production capacity to 7,200 tons per month by 2026 and improve the efficiency of operational processes.
Al Hadi noted that the company is committed to enhancing operational sustainability according to best global practices, localising modern technologies, developing national cadres, attracting foreign direct investment, and contributing to economic diversification. He emphasised that national cadres will be prioritised for employment and that sufficient opportunities will be provided to small and medium enterprises through subcontracts.
Hamoud Said Al Aufi, Managing Director of Novel Muscat International Company, stated that with the signing of the concession agreement, the company will begin the phase of national manufacturing by establishing an integrated industrial complex that transforms mineral resources into locally processed products. This will enhance added value and create job opportunities. He explained that this agreement will contribute to developing processing industries and maximising the added value of natural resources, in line with national sustainable development goals.
These agreements reflect the Ministry of Energy and Minerals' direction toward building an integrated mining sector that keeps pace with global developments in mining industries and enhances Oman's competitiveness at the regional and international levels. They also confirm the Ministry's commitment to creating a flexible and attractive investment environment that draws in specialised companies with high technical expertise and opens the door for qualitative partnerships between the public and private sectors.
Through these projects, the Ministry of Energy and Minerals seeks to develop processing industries related to mineral resources, improve the efficiency of national resource utilisation, expand the base of local production, create qualitative job opportunities for the residents of the targeted governorates, and increase the mining sector's contribution to supporting the national economy and diversifying income sources. This solidifies Oman's position as a regional hub for advanced mining industries.
