New Trading Arm Launched: How It Will Boost Value Creation and Investment Opportunities in Oman’s Mineral Resources
MUSCAT — Minerals Development Oman (MDO), the state-owned mining and minerals investment company, is set to launch a new minerals trading entity designed to bolster Oman’s role in the global minerals supply chain and unlock greater value from the nation’s mineral resources.
Mattar bin Salim al Badi, CEO of MDO, explained that the Oman Minerals Trading Company, currently under formation, will provide strategic market insights, enhance pricing leverage, and support the development of downstream value chains. These initiatives are key drivers of MDO’s investment and expansion plans.
“Trading is a central pillar of MDO’s long-term strategy,” Al Badi stated. “We are establishing Oman Minerals Trading Company as a wholly owned subsidiary to oversee the marketing and export of mineral commodities. By regulatory mandate, minerals such as chromite and gypsum cannot be exported without this company’s approval, ensuring structured, transparent, and value-driven trade.”
The trading platform will allow MDO to engage in existing mining operations through offtake and equity participation without directly managing the mining assets. This approach provides a flexible and capital-efficient model to support regional growth while generating steady revenue.
First announced by the Ministry of Energy and Minerals in May 2025, the new trading arm will serve as a central export manager, consolidating shipments, standardising contracts and pricing, and reducing market fragmentation that has kept Omani minerals, including gypsum and chromite, sold at low margins.
MDO plans to establish a specialist trading desk dedicated to handling commercial negotiations, offtake agreements, and risk management. The company will actively engage global commodity traders and buyers to negotiate longer-term contracts, enabling pre-financing and price stability for higher-value processed mineral products. This initiative is also expected to enhance downstream value addition and logistics, supporting Oman’s ability to export processed minerals rather than low-margin raw materials.
A Ministerial Resolution issued in May grants Oman Minerals Trading Company exclusive rights to export gypsum and chrome ore, with priority given to the local market for mineral purchases. Chromium ore exported must have a minimum concentration of 36 percent, while processed chromium ore of any concentration requires written approval from the Ministry of Energy and Minerals.
Al Badi highlighted MDO’s vision to evolve into a diversified mining investment company. He noted, “We expect significant growth in the coming years driven by technological advances and government support, particularly in electric vehicle battery manufacturing. MDO aims to attract strategic investors and form joint ventures to leverage these emerging opportunities.”
He also outlined plans for substantial expansion in copper production, with upstream developments potentially extending beyond Oman’s borders while maintaining downstream processing domestically to maximise value creation. “Our goal is to transform MDO into a leading mining investment company with a diversified portfolio and a strong presence across the entire value chain,” Al Badi added.
The formal launch of Oman Minerals Trading Company is scheduled for May 2026.
Special Analysis by Omanet | Navigate Oman’s Market
The launch of Oman Minerals Trading Company signifies a strategic shift towards greater market control and value addition in Oman’s mineral sector, offering businesses opportunities to engage in more stable, transparent, and higher-margin trading. Smart investors should consider the emerging downstream processing and electric-vehicle battery supply chain prospects, while entrepreneurs can anticipate growth in copper and chromite markets driven by regulatory backing and technological advancements. This development poses a risk to fragmented, low-margin raw mineral exports but opens doors for integrated, value-focused enterprises aligned with Oman’s long-term mining diversification goals.
