Oman extends bid deadline for various mining projects
Oman’s Ministry of Energy and Minerals has announced the extension of the auction period for several mining projects in the country. The move is aimed at attracting more local and international companies to invest in Oman’s mineral sector and to promote economic growth in the country.
The auction process was initially launched in March 28, 2023, with a deadline of May 28, 2023, for interested companies to submit their bids. However, due to the high level of interest shown by local and international investors, the Ministry of Energy and Minerals has decided to extend the deadline for submitting bids until July 30, 2023.
The projects that are up for auction include the exploration and mining of minerals in various parts of the country.
The concession areas in Dhofar Governorate are believed to be rich in gypsum, limestone, dolomite, phosphates and clay. It covers Concession 71 — a 5,638 square kilometres (sq km) mining area, Concession 73 (1,551 sq km) and Concession 77 (1,355 sq km).
In Al Sharqiyah North Governorate, copper, gold, silver, chrome and basalt are the raw materials expected in Concession 22-B (1,144 sq km), Concession 22-D (790 sq km) and Concession 22-E (810 sq km). The same raw materials are expected in Concession 11-A (1,438 sq km) located in Al Buraimi Governorate.
The Ministry of Energy and Minerals has stated that the projects offer significant opportunities for investors to participate in Oman’s growing mining sector and contribute to the country’s economic development.
The mining sector in Oman has a proven history of producing top-notch mineral resources. In fact, the country holds the distinction of being the first GCC producer and exporter of ferrochrome, with production reaching 210,000 metric tonnes in 2020.
This has contributed significantly to Oman’s GDP, accounting for 1.4% of the country’s total output, a marked improvement from 0.6% in 2019. Oman has also exported minerals and mineral products worth over $1.5 billion, and the government aims to increase this figure to 10% by 2040.
In 2017, Oman became the world’s top gypsum exporter, surpassing Thailand.
The country supplied major global markets with 7.4 million tonnes of gypsum. However, in 2020-2021, the situation changed significantly, with Oman now accounting for 44.4% of the world’s gypsum supply, which equates to roughly 17.5 million tonnes annually.
The ministry is committed to promoting the mining sector in Oman and creating a conducive environment for investors. The government has implemented several measures to support the development of the mining sector, including the establishment of a dedicated mining authority and the introduction of new mining laws and regulations.