Pact inked for new mining block in Oman

MUSCAT: The Ministry of Energy and Minerals signed yesterday a mining concession agreement with Al Tamman Indsil FerroChrome LLC to grant it the right to explore and mine in Area 22-D in North Al Sharqiyah Governorate, which spans an area of 790 square kilometres. The area is characterized by the presence of a series of ophiolite rocks, and the most important indicators of minerals found in this area are copper and chromium.

Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals, signed the agreement on behalf of the Government of the Sultanate of Oman, while Dr. Roman Lorf signed on behalf of the Chairman of the Board of Directors of the company.

The agreement obligates the company to implement a comprehensive exploration programme during the first two years, which includes conducting topographic and geophysical surveys, using remote sensing techniques, and preparing detailed geological maps for a large part of the area. The programme also includes detailed geochemical and physical analyses, as well as implementing an intensive drilling program of up to 250 boreholes with an average depth of 35 metres per borehole.

Al Aufi highlighted the remarkable development witnessed by the minerals sector thanks to the approach adopted by the ministry in recent years, which focuses on achieving a balance between expanding mining activities and economic, social, and environmental dimensions. The ministry's efforts have been manifested in identifying concession areas that are offered for competition based on the principles of transparency and equal opportunity, in addition to adopting initiatives that contribute to developing the sector, such as designing specialized training programs to qualify national cadres, launching an innovative digital platform that provides investment opportunities to attract the best qualified investors, and issuing a comprehensive safety and security guide that enhances the efficiency and safety of mining operations.

He also pointed out the existence of a package of development programs that the ministry is working on to ensure the sustainability of growth and achieve sustainable progress in this vital sector.

The minister affirmed that these efforts are part of the ministry's strategy to enhance the contribution of the minerals sector as a fundamental pillar to support the national economy, not only through optimal utilization of natural resources and providing sustainable economic returns, but also by enhancing local content through supporting manufacturing industries and providing raw materials that contribute to the construction and development witnessed by the Sultanate of Oman. The sector also contributes to the integration of its operations with other sectors such as industry, commerce, transport, and logistics, which is in line with the objectives of the minerals sector outlined in Oman Vision 2040.

On his part, Omar bin Mohammed bin Ali al Maashani, Commercial Director of Al Tamman Indsil FerroChrome, said: "We are delighted to sign an exploration and mining concession agreement with the Ministry of Energy and Minerals for Area D22. This agreement will enhance the integration between mining projects and downstream industries in the Sultanate of Oman, as the raw materials extracted from chromium ore will be used to feed Al Tamman Ferro Alloys plant, the largest ferrochrome production plant in the Middle East. This joint Omani-foreign investment project reflects the importance of international partnerships in achieving sustainable development and supports the Sultanate of Oman's aspirations for a brighter and more sustainable economic future."

Moreover, this agreement contributes to supporting the local economy by enhancing local content and localizing industries related to the mining sector. The added value resulting from the processing of Omani raw materials within the Sultanate of Oman reflects our commitment to achieving sustainable economic development, as well as providing job opportunities for national competencies, supporting small and medium-sized enterprises, and stimulating the local value chain. This agreement will also contribute to supporting the local community in the concession area by providing direct and indirect economic and social opportunities, thereby enhancing the participation of the local community in the success of this project.