Oman Signs Two Mining Agreements Worth $15.4 Million

Oman Signs $15.4 Million Mining Exploration Agreements Covering 1,687 sq km

Muscat:  The Ministry of Energy and Minerals today signed two agreements in Muscat to develop two mining concession areas covering a total of about 1,687 square kilometres, with exploration investments estimated at approximately RO 6 million ($15.4 million).

The first agreement covers Concession Area 51-B, located in Al Dakhiliyah and Al Wusta Governorates, with an area of 1,050 square kilometres and estimated exploration investments of about $6.2 million.

The first-phase exploration programme will run for two years and three months and include topographic, geophysical and remote-sensing surveys, geochemical and physical analyses, as well as excavation and exploration trenching.

The second agreement covers Concession Area 25-E in South Al Sharqiyah Governorate, spanning approximately 637 square kilometres, with exploration investments estimated at about $9.2 million.

The work programme will include topographic, geophysical and remote-sensing surveys, geochemical and physical analyses, and exploratory drilling and trenching to enhance geological knowledge and assess the mineral potential of the area.

The agreements were signed on behalf of the Ministry by Eng. Salem bin Nasser Al Aufi, Minister of Energy and Minerals. On behalf of the investing companies, they were signed by Ahmed bin Khalid Al Shanfari, Managing Director of Emaar Mining Company, which is investing in Concession Area 51-B, and Zhang Xiaolong, Chairman of the Board of Directors of Gulf Royal Minerals and Energy Company, which is investing in Concession Area 25-E.

Al Aufi said the agreements extend the Ministry’s efforts to provide investment opportunities, expand mineral exploration and prospecting and develop projects that can progress from exploration to production.

He added that the next phase will focus on accelerating the conversion of exploration results into productive projects and maximising the local value of mineral resources through manufacturing and related processing industries.

The Minister noted that Oman’s minerals sector has undergone significant developments in its investment and regulatory framework over the past five years, with 28 mining concession areas awarded for the exploration and development of various mineral resources, including copper, chromium, gypsum, limestone, dolomite, silica and salts.

He said these efforts have been accompanied by developments in the legislative and regulatory framework, the adoption of an occupational health and safety guide to improve mining standards and operational efficiency, and the establishment of the Omani Company for Minerals Trading to regulate the trading and marketing of raw materials and facilitate their access to markets.

The sector has also undergone digital transformation, with transactions and services being shifted from paper-based procedures to an integrated digital system that provides a sector database, improves the efficiency and flexibility of submitting and tracking applications, and offers investment opportunities based on transparency and equal opportunity.

Al Aufi said the impact of these measures has begun to emerge in the sector’s economic indicators, with minerals sector revenues growing by about 39% in 2025 compared with 2024, alongside increased activity and the entry of copper ore into production.

He stressed that the gradual progression of concession areas from exploration to development and production, together with the entry of new projects and sites into production — most notably the Mazoon Copper Mine next year — will support revenue growth, enhance the economic value of mineral resources, expand value chains and local content, and strengthen the sector’s contribution to economic diversification and the objectives of Oman Vision 2040.