MUSCAT: Sohar International has signed an agreement with Al Hadeetha Resources LLC, an Omani-Australian JV, to provide financing to the tune of RO 19 million for its Wash-hi Majazah copper mining project in Al Mudhaibi in North Al Sharqiya Governorate.
Signing the agreement on behalf of the bank was Ahmed al Musalmi, Chief Executive Officer of Sohar International, whereas Sayyid Khalid bin Hamed al Busaidy, Chairman of Al Naba Holding, Devaki Gulabsi Khimji, Managing Director of Al Tasnim Group and Atmavireshvar Sthapak, Managing Director of Alara Resources Ltd represented the shareholders of Al Hadeetha Resources.
Ahmed al Musalmi of Sohar International said, “Regarded as one of the major mining projects in the Sultanate of Oman, the scale of its operations will contribute significantly to the overall economy, creating in-country value, job opportunities and much more. At Sohar International, we remain invested in supporting ventures that provide sustainable socio-economic benefits to the community enabling people to prosper and grow.”
Al Hadeetha Resources LLC, a joint venture between Alara Resources, Al Hadeetha and Al Tasnim, is the first international joint venture company that has been awarded a copper mining license in the Sultanate of Oman for the Wash-hi Majazah project. Located in the Governorate of North Al Sharqiyah, the Wash-hi Majazah copper deposit has been evaluated under JORC standards with over 16 million tons of copper resources and 10 million tons of mineable reserves.
With an increase in global demand for copper, the Wash-hi Majazah project provides various channels of growth and prosperity in the economy as well as socioeconomic benefits for the country and local communities such as providing employment for approximately 200 Omanis, local skill developments, opportunities for local suppliers and vendors, infrastructure development and much more. The plant will be inaugurated in November of this year.
“A project of this scale requires the right kind of support, and we are grateful to Sohar International for extending their project financing services to ensure that our operations are carried out without any hindrance,” said Sayyid Khalid al Busaidy, Chairman of Al Naba Holding.
With equity contribution of RO 8 million bringing up the total valuation of the project at approximately RO 27 million, Wash-hi Majazah project will generate cash flows of RO 200 million for a period of 10 years. The project will empower the local community in the governorate of North Al Sharqiyah and create significant in-country value that will have an impact on the neighboring governorates and regions harnessing local capabilities and creating a strong value chain impacting everything from skills to infrastructure development such as upgradation of local STP plants, power, road and water.
A V Sthapak, Managing Director of Alara Resources said: “Alara wishes to thank Sohar International, our fellow JV partners for their valuable support and for their disciplined approach towards realizing our mission of becoming a mid-tier mineral producer with a focus on mineral deposits and projects in the Sultanate of Oman. These are exciting times for global copper mining industry and Al Wash-hi Majazah Project is destined to write a new chapter for Oman copper.”
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