Delays risk mining investment

July 24: At a time when global commodity markets are hurting, Oman risks turning away prospective investors if it doesn’t act quickly enough on mining-related licenses and permits.

This was one of the key messages emanating from a meeting of mining industry stakeholders who met at the Grand Hyatt Muscat at the weekend to finalize the programme agenda of the next edition of the Oman Minerals & Mining Exhibition and Conference due to be held in Muscat next January.

In attendance were top officials representing a number of government and private sector organisations. They included Ibrahim Said al Amri, Project Manager of Minerals Development Oman (under formation); Henry Antwi — Head of Mining at Oman Oil Company; Dr Salim al Busaidi, Founder of Awtad / Madaen Projects; Dr Nasir Sobhi of Sultan Qaboos University, as well as representatives from ITHRAA and Kunooz Oman Holding.

Later, in a briefing to journalists, officials voiced hope that the muchanticipated new Oman Mining Law would address many of the shortcomings currently plaguing the industry.

Articulating one such concern for investors, a representative said: “Private investors would like to see clear decisions and speedy actions by the government on their applications for licenses and permits. If I wish to apply for a mining licence, I don’t want to wait for years for a response. Investors want to know where they stand with regard to that application within 3-6 months. If they don’t receive a response within a reasonable period of time, they will go elsewhere with their investment.”

An official representing a public sector entity added: “Mining investors are risk takers given the risky nature of the business. Commodities are susceptible to price fluctuations. In the circumstances, investors look at no longer than three-year projections when planning their investments. But if they have to wait for two years or more for a licence, all of the feasibility