Enhanced Minerals MoU: Key Implications for Business Growth in Oman and Türkiye
MUSCAT, OCTOBER 25 — A Memorandum of Understanding (MoU) signed between Oman and Türkiye during the recent state visit of President Recep Tayyip Erdoğan aims to enhance collaboration in the mining and critical minerals sectors, among others.
The MoU was signed by Eng. Salim bin Nasser al Aufi, Oman’s Minister of Energy and Minerals, and Alparslan Bayraktar, Türkiye’s Minister of Energy and Natural Resources. The signing ceremony was attended by His Majesty Sultan Haitham bin Tarik, President Erdoğan, and officials from both nations.
Post-signing, Bayraktar remarked, “This agreement will foster new collaborations and joint investments between the public and private sectors of both countries. We aim to enhance knowledge exchange in earth sciences to explore new opportunities in mineral exploration and production. Our objective is to solidify our strategic cooperation through tangible projects that benefit both nations.”
Under the terms of the MoU, Oman and Türkiye will share information regarding mining licence areas and existing investment opportunities. The agreement encourages joint investments in mineral exploration and production between public and private companies, alongside the exchange of expertise and data in mining, critical minerals, and earth sciences.
Oman is experiencing significant potential in critical minerals, particularly copper, chromite, silica, and other industrial minerals, as well as developing prospects for lithium, nickel, cobalt, and specific rare-earth elements. The government has transitioned from policy development to actionable initiatives, including new concessions and state investment projects. However, much of the activity surrounding lithium and rare-earth elements remains in the exploratory or early investment phases.
This latest MoU strengthens the growing partnership between the two nations in energy and mining. Türkiye’s extensive mining experience complements Oman’s rich mineral resources.
Furthermore, the Oman-Türkiye Joint Investment Fund, established in July with a capital of $500 million, prioritizes mining and metals for cooperation. Additionally, Oman’s Public Authority for Special Economic Zones and Free Zones (OPAZ) has formed a cooperation program with Türkiye’s Gebze Organised Industrial Zone (GOSB) to adapt the Turkish industrial zone model for the Special Economic Zone at Duqm (SEZAD). Key sectors for joint investment include mining, petrochemicals, food production, and logistics.
Earlier this July, during a visit by Bayraktar to Muscat, another MoU was signed to enhance partnership and technical cooperation in the energy sector. This agreement covers various aspects, including oil and gas exploration and production, liquefied natural gas (LNG) trade, renewable energy, energy efficiency, alternative fuels, green hydrogen, and carbon capture technologies. It also encompasses technology exchange, joint projects, and regulatory collaboration.
Moreover, Türkiye’s state-owned Turkish Petroleum Corporation (TPAO) signed a tripartite agreement with Oman’s Ministry of Energy and Minerals and OQ Exploration and Production New Ventures (OQEP). This agreement grants TPAO exclusive short-term rights to assess certain Omani oil and gas fields and includes a cooperation agreement with OQEP to explore new opportunities in the upstream energy sector.
Special Analysis by Omanet | Navigate Oman’s Market
The recent MoU between Oman and Türkiye marks a pivotal moment for businesses in Oman, particularly in the mining and critical minerals sectors. This cooperation presents significant opportunities for investment and technological exchange, especially for smart investors looking to leverage Oman’s rich mineral resources amid Turkey’s expertise. However, firms should also be aware of the risks associated with early-stage projects in lithium and rare earth elements, necessitating vigilant market assessments and strategic planning.
