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Oman is poised for a resurgence of investor interest in its extensive and mineral reserves including copper, chromite, gypsum, limestone, marble and potash.  The development of the mining and quarrying sector is a key pillar of the Sultanate’s economic diversification strategy as set out in the current ninth five-year plan 2016-2020.

A recent uptick in applications for copper mining licences reflects both Oman’s efforts to attract investment in the sector, and higher copper prices supported by increased electrification and growing global supply deficits. The grant of a copper mining licence, the first since 2004, to Al Hadeetha Resources (AHR) in June, marks the resumption of copper mining after a lengthy hiatus (output of copper ore dropped to zero in 2016). AHR is a joint venture between Australian-based mining firm, Alara Resources and Omani firm Al Hadeetha Investment formed in 2011 for the purpose of exploring and developing mining initiatives in the sultanate. The Al Hadeetha copper project at Washihi, the single-largest copper resource in Oman, is set to become the next producer of copper concentrate in Oman. The award of the EPC contract for the project’s copper concentrator plant with a capacity of 1 million tonnes per annum is imminent.

The UK’s Savannah Resources PLC also reported early July that they have made progress on obtaining mining licences for the first two of a planned series of high-grade copper mine developments in Oman. Savannah, a 65% shareholder in the Omani company Al Fairuz Mining, the holder of the Block 5 exploration licence, which includes the Mahab 4 and Maqual South copper deposits, has received ministerial sign-off clearing the way for the grant of a licence.

A new mining law and the national mining strategy currently in development by the Public Authority of Mining in collaboration with a consortium of international firms, are expected to be unveiled shortly in the second half of 2018. The draft Mineral Wealth law, which has undergone extensive stakeholder consultation for several years, as well as legislative scrutiny, edged closer to ratification after a joint meeting of Oman’s upper and lower houses of parliament at the end of June succeeded in consolidating views on a final draft. Hopes are high that the new law will add impetus to the solid minerals extractives sector by streamlining the licence application process (which currently requires regulatory approval from eight different ministries), and by extending the current five-year licence periods and mandatory annual renewal requirement.