Oman Chromite wins new mining block
Published: 05:04 PM,Apr 06,2024 | EDITED : 09:04 PM,Apr 06,2024
New mining concession is set to bolster Oman Chromite’s dwindling resource base.
MUSCAT: Oman Chromite Company has announced that its bid for a mining block in north Oman has received tentative approval from the Ministry of Energy and Minerals.
The provisional award, subject to the finalization of a Concession Agreement, represents a major shot in the arm for the publicly-traded company’s efforts to shore up its rapidly depleting chromite ore resource base.
Block 11-A – a 1,438 sq km land parcel in Al Buraimi Governorate – was one of seven mining blocks offered for investment and development as part of a licensing round launched by the Ministry in March 2023. Besides chromite ore, the block is also thought to be prospective for copper, gold, silver and basalt resources.
In its Annual Report for 2023, Oman Chromite reported a steep 44% decline in ore production for the year, attributing the slump to depleting reserves in its existing mining concessions in north Oman. Output plummeted to 59,438 tonnes in 2023, down from 105,992 tonnes a year earlier.
Humaid bin Masoud al Maqbali, Board Chairman, said the company was focused on evaluating the potential of new mining sites awarded by the Ministry, as well as the acquisition of other concessions.
Abdulmonem bin Mohammed al Murshidi, CEO, added that the company is also exploring joint investment opportunities with concession owners open to collaborating with Oman Chromite and benefiting from its capabilities in the field of chrome ore mining.
In June 2022, Oman Chromite entered into a joint arrangement with Minerals Development Oman (MDO), the nation’s mining investment and development flagship, to share the cost of exploration, evaluation and feasibility phases covering the development of two sites at Liwa and Mahdha. MDO, a subsidiary of Oman Investment Authority (OIA), has a 25.4% stake in Oman Chromite.
Established by Royal Decree in 1991, Oman Chromite produces metallurgical and refractory chromite ores for a variety of industrial applications.
The provisional award, subject to the finalization of a Concession Agreement, represents a major shot in the arm for the publicly-traded company’s efforts to shore up its rapidly depleting chromite ore resource base.
Block 11-A – a 1,438 sq km land parcel in Al Buraimi Governorate – was one of seven mining blocks offered for investment and development as part of a licensing round launched by the Ministry in March 2023. Besides chromite ore, the block is also thought to be prospective for copper, gold, silver and basalt resources.
In its Annual Report for 2023, Oman Chromite reported a steep 44% decline in ore production for the year, attributing the slump to depleting reserves in its existing mining concessions in north Oman. Output plummeted to 59,438 tonnes in 2023, down from 105,992 tonnes a year earlier.
Humaid bin Masoud al Maqbali, Board Chairman, said the company was focused on evaluating the potential of new mining sites awarded by the Ministry, as well as the acquisition of other concessions.
Abdulmonem bin Mohammed al Murshidi, CEO, added that the company is also exploring joint investment opportunities with concession owners open to collaborating with Oman Chromite and benefiting from its capabilities in the field of chrome ore mining.
In June 2022, Oman Chromite entered into a joint arrangement with Minerals Development Oman (MDO), the nation’s mining investment and development flagship, to share the cost of exploration, evaluation and feasibility phases covering the development of two sites at Liwa and Mahdha. MDO, a subsidiary of Oman Investment Authority (OIA), has a 25.4% stake in Oman Chromite.
Established by Royal Decree in 1991, Oman Chromite produces metallurgical and refractory chromite ores for a variety of industrial applications.