Oman Advances Strategic Mineral Exploration: Key Implications for Investors and Businesses in the Resource Sector
MUSCAT: Oman’s mining sector is rapidly becoming one of the country’s most promising areas for growth, bolstered by a comprehensive exploration roadmap and enhanced geological data availability across various governorates. Recent aerial and geochemical surveys conducted by Minerals Development Oman (MDO) have uncovered geological indicators of strategic minerals, including gold, copper, zinc, lead, and chromium.
Engineer Mattar bin Salim al Badi, CEO of MDO, stated that these findings suggest fertile geological environments that necessitate further detailed exploration to determine the size and quality of the resources. He emphasized that the current phase remains highly technical, with commercially viable reserves only verifiable after completing internationally recognized exploration programs.
Al Badi indicated that official reserve estimates will not be released until they conform to standards such as the Australian or Canadian reporting codes, which are essential for investors and financial institutions. Thus, it is too early to declare specific quantities of minerals, including gold.
He noted that Oman’s mining sector had experienced significant regulatory reforms between 2017 and 2023, adopting a new investment model similar to that of the oil and gas industry. This model focuses on allocating large concession areas, which renders extensive aerial surveys more cost-effective and internationally competitive.
MDO, acting as the investment and development arm for the sector, oversees 14 concession areas covering approximately 24,000 square kilometers. Since the commencement of intensive exploration activities in 2022, the company has carried out aerial surveys over more than 16,000 square kilometers, drilled over 100,000 meters, and analyzed more than 80,000 samples through ground surveys and satellite imagery.
The company’s strategy aims to mitigate investor risk by providing high-quality geological data while promoting the responsible development of metallic, precious, and rare earth minerals. Additionally, it seeks to attract international partnerships and enhance downstream value creation.
Al Badi also highlighted a significant industrial minerals project in the Al Shuwaymiyah region, which features a dedicated export terminal and aims to produce 23 million tonnes of limestone and gypsum in its initial phase, eventually increasing to 40 million tonnes. He underscored the importance of environmental protection and community acceptance, referencing the use of dry tailings technology at the Yanqul project to preserve groundwater.
MDO is also focused on establishing a local mining services ecosystem, issuing tenders for specialized laboratories and promoting the localization of drilling and surveying services. The long-term vision is to cultivate an integrated mining industry in Oman that encompasses research, services, and downstream processing while maximizing local added value. — ONA
Special Analysis by Omanet | Navigate Oman’s Market
Oman’s mining sector is poised for significant growth, driven by improved geological data and strategic reforms that attract investment. This creates opportunities for businesses, particularly in mining services and downstream processing, while also presenting risks related to resource verification and environmental sustainability. Smart investors should focus on partnerships with MDO and be prepared for the long-term nature of exploration and development.
