Oman signs exploration, mining deals worth $500 million

Dubai: Oman’s Ministry of Energy and Minerals has signed three mining and exploration agreements worth a combined $500 million with two specialised companies, as part of a broader push to expand the Sultanate’s mining sector and boost domestic production, the Oman News Agency (ONA) said on Tuesday.

The deals are intended to increase the value of the Sultanate’s mineral resources and attract investment in priority geological zones. The initiative reflects the government’s strategy to position mining as a central pillar of its long-term plan to expand the economic base, while advancing sustainable growth.

Under the first agreement, Gulf Mining Materials Company will explore and develop concession area 11-C in Al Buraimi Governorate, an expanse of 1,089 square kilometres known for ophiolite rock formations and signs of copper and chromium deposits. The two- to three-year initial phase will involve topographic, geochemical, and geophysical surveys, alongside exploratory trenching and drilling.

The other two agreements, signed with Novel Muscat International Company, cover concessions 51-G1 and 51-G2 in Al Wusta Governorate. In 51-G2, spanning 30 square kilometres, the company will build a factory to produce salts and sodium carbonate — or soda ash — using seawater transported through channels to evaporation and drying basins. In 51-G1, which covers 558 square kilometres, Novel Muscat plans a hydrated lime plant, preceded by studies to assess the quality and quantity of raw materials in formations rich in silica, limestone, and various clays.

High-quality investments

Eng. Salim bin Nasser Al Aufi, the Minister of Energy and Minerals, said the agreements align with the ministry’s strategy to attract “high-quality investments capable of delivering tangible economic impact.”

He stressed that the projects are designed not only for resource extraction but also for building downstream industries, strengthening value chains, and creating jobs. “These agreements,” he said, “focus on harnessing the knowledge and technical expertise of specialised companies and enhancing public-private cooperation to ensure optimal utilisation of our resources.”

The ministry expects that the projects will expand Oman’s economic base, improve the competitiveness of its products, and raise the mining sector’s contribution to GDP. They are also projected to create job opportunities for citizens in the host governorates and support small and medium-sized enterprises in the supply chain.