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Bids invited for 3 new mining sites in Dhofar

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MUSCAT: The Ministry of Energy and Minerals has invited bids for mining sites located within the Ayoun area in Dhofar Governorate. Omani companies with prior experience in mining sector projects are eligible to participate in the bidding process, the Ministry said in a post.


The bidding will cover three mining sites of areas 1.72 km², 1.41 km², and 1.87 km² respectively. The targeted resource in these sites is construction materials, such as aggregates. Companies interested in participating can register their interest and submit their bids by June 11, 2023.


“This announcement presents a significant opportunity for Omani companies with mining sector experience to participate in a transparent and fair bidding process for the construction materials mining sites, with equal opportunities for all,” the Ministry stated.


It added that the mineral sites hold abundant reserves of construction materials that will contribute to the growth of the construction industry in Oman. Further, commercialization of these sites will also drive economic activities in Dhofar Governorate, it said.


Sunday’s public tender comes on the heels of a major tender for as seven mining concession areas, covering a total area of 12,726 square kilometers and distributed in the governorates of Dhofar, North Al Sharqiyah and Al Buraimi.


The new blocks, unveiled towards the end of last month, are home to industrial minerals such as gypsum, limestone, phosphate, dolomite and clay, as well as metallic minerals including gold, silver, copper, chromite and basalt.


Just earlier, the Ministry signed an agreement with the British company Knights Bay granting it the concession to explore and develop mineral resources, including valuable nickel ore, in Block 21 in North Al Sharqiyah Governorate. It was the first direct concession agreement with an international investor.


Knights Bay has committed to spending between $25 – 30 million during the initial 3-year appraisal phase, covering the 1,444 square kilometer block. If successful in unearthing commercial quantities of minerals, chiefly nickel ore, Knights Bay will build, develop and process battery minerals (nickel and cobalt) in the Sultanate of Oman to meet the global demand for nickel through electric car manufacturers.


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