MUSCAT, MAY 21
Marking a significant milestone in Oman’s efforts to commercialise its promising mineral resources, a maiden shipment of copper-gold concentrate from a newly commissioned mining project in North Al Sharqiyah Governorate is being prepped for export from Sohar Port and Free Zone next week.
Al Hadeetha Resources LLC, an Omani-Australian joint venture, announced on Tuesday that the first consignment of concentrates from its Al Wash-hi Majaza mine in the Wilayat of Al Mudhaibi is scheduled to set sail on May 27, 2024.
It marks the culmination of a years-long effort by the JV to explore, appraise and develop the copper-gold resources of the mine ever since its Australian partner, Alara Resources (51%), became the first international mining company to secure a mining license from the Omani government in June 2018 under the country’s modernized mining laws.
The inaugural shipment also comes amid a strong uptrend in the international prices of copper fuelled by investor concerns that the ongoing global energy transition may cause significant shortages of the strategically important metal. Earlier this week, copper futures on the London Metal Exchange surged 4.1% to reach $11,104 per tonne, surpassing a previous record set in March 2022.
Global commodities group Trafigura is the offtaker of copper concentrate from the Al Wash-hi Majaza project under an agreement signed with Al Hadeetha Resources committing all output for a period of eight years from the start of production. Pricing is based on the official London Metal Exchange cash settlement quotation for Grade A copper at the time of delivery.
Muscat-headquartered Al Hadeetha also revealed that technical problems associated with a ‘tailing filter press’ within its newly commissioned 1 million tonne per annum capacity copper concentrator plant are being addressed by a team of engineers. The glitch has been hampering the optimal performance of the plant.
Meanwhile, in a further boost for its growth strategy in Oman, Alara Resources announced that its Omani joint venture company Awtaq Copper LLC has been granted a renewal of its exploration license of Block 8 in the Samail Ophiolite.
Copper and gold mineralisation is thought to occur in the volcanic rock units of the ophiolite, according to Alara. More than 150 volcanic massive sulphide (VMS) prospects have been discovered along the 500 km length of the Samail Ophiolite, it noted.
Welcoming the license renewal, Alara Managing Director Atmavireshwar Sthapak said: “With the grant of a mining concession over Block 22B and the renewal of this license, Alara and partners now have the right to explore more than 1900 km2 ground in Oman. These are exciting times for the global copper mining sector, which is urgently seeking new deposits around the world. Alara, which has recently begun producing copper concentrate in Oman, is eager to collaborate with its joint venture partners to explore Oman’s promising geology in the hope of making additional copper-gold finds.”
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