$100m worth pact for developing copper-gold reserves in Yanqul

An agreement was signed here yesterday between state-owned entities Oman Mining Company (OMCO) and Minerals Development Oman (MDO), with international mining investment firm EXO, for the exploration and development of copper and gold reserves in Block 10 near Yanqul in ِAl Dhahirah Governorate. The agreement was signed by Abdulsattar al Murshidi, Chairman of Oman Mining Company; Nasser Saif al Maqbali, Deputy CEO – Minerals Development Oman; and Kari J R Haataja, CEO & Managing Partner, EXO Mining. It will pave the way for investments of over $100 million over an initial three-year period targeting just 10 per cent of the potentially mineral-rich Block. According to Al Murshidi of OMCO, equity in the Yanqul project company will be shared as follows: OMCO — 29 per cent, MDO — 20 per cent, and EXO — 51 per cent. Block 10, located near Yanqul town in the Wilayat of Yanqul, covers a 370 square kilometre area. The first phase of development will focus on five known copper (Cu) and gold (Au) prospects within Block 10 accounting for 10 per cent of the total Block 10 area. “The Yanqul Project has been well explored in the past and has a high confidence Mineral Resource Estimate, according to JORC guidelines (the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves). The first phase investment is estimated at approximately $100 million over the coming three-year period. The Yanqul Project company will also engage in further exploration of the entire Block 10 area,” said Al Murshidi. Subject to further proven mineral reserves in the coming years, the Yanqul Project company will also evaluate potential investment opportunities in a smelter project in the local region, the official stated. “The company will carry out detailed feasibility study and related studies of process flow, engineering, machinery selection, construction and operation cost estimates. We intend to use the latest technology available and the most efficient processes. Particular attention will be given to cooperation with local authorities and community for developing a world-class mining operation in the Sultanate of Oman,” he added. Oman Mining Company LLC (OMCO), established by Royal Degree, commenced operations in 1979 with two copper mines and a copper concentrating plant including a smelter and refinery at Suhar. Also partnering in the venture is Minerals Development Oman (MDO), a new entity set up as a holding company that contributes to the development of the Omani mining sector. MDO’s shareholders comprise: the State General Reserve Fund (SGRF), Oman Investment Fund (OIF), Oman Oil Company (OOC) and Oman National Investments Development Company (TANMIA). EXO is an active investor through direct investments and joint ventures with known industry specialists and participants. EXO Group has been investing in the mining sector since 2002. EXO Group has current operations and investments in both developed and emerging markets and offices in Switzerland, UK and Oman. EXO is collaborating with China National Geological & Mining Corporation (CGM), established in 1987, and is an integrated state-owned enterprise operating under China Energy Conservation and Environmental Protection Group. CGM will operate as a technical partner in the Yanqul Project company during the feasibility phase. Jomar Mendoza - MUSCAT, JAN 24 -