RO 204 Million Pact: What It Means for Business Growth in Oman’s South Minerals Project
BUSINESS REPORTER
MUSCAT, NOV 17
Minerals Development Oman (MDO) has entered a significant partnership agreement with India’s JSW Group to advance the South Minerals Project, a pivotal initiative in the country’s industrial minerals sector, valued at RO 204 million.
The project aims to create an integrated value chain for the extraction of gypsum and limestone, augmented by a dedicated marine terminal located at Shuwaimiyah in the Wilayat of Shalim and the Hallaniyat Islands. This terminal will have the capacity to handle up to 27 million tonnes annually, enhancing the national port network and improving supply chains for Omani exports to regional and global markets. This initiative aligns closely with the goals of Oman Vision 2040, particularly regarding economic diversification and industrial growth.
Covering three concession zones that encompass 1,500 sq km, the project is supported by proven mineral reserves, verified through extensive exploration conducted by MDO in recent years. Once fully operational, the quarries are projected to yield 30 million tonnes of gypsum and limestone per year, significantly boosting Oman’s exports of industrial minerals and creating new logistical and industrial opportunities, especially in the Dhofar Governorate.
With substantial mineral reserves and robust infrastructure, this project is well-positioned to attract downstream industries and stimulate local value chains. The selection of JSW Group as the strategic partner is attributed to its technical expertise, financial strength, and global proficiency in iron and steel, metals, energy, infrastructure, and related sectors.
Abdulsalam bin Mohammed al Murshidi, President of the Oman Investment Authority, stated that the South Minerals Project exemplifies Oman’s proactive investment strategy aimed at establishing a competitive mining sector throughout the entire value chain. He noted that the partnership will facilitate foreign investment, expedite sector development, and bolster national diversification efforts.
Dr. Badar bin Saud al Kharusi, Chairman of MDO, explained that the project consists of two primary components: the construction of a port specifically for exporting gypsum and dolomite, along with the mining operations, which will be the largest of their kind in Oman. He highlighted that the initiative will also include new factories that will provide employment opportunities for young Omanis.
Engineer Matar bin Salim Al Badi, CEO of MDO, underscored that this initiative represents a significant milestone in the company’s long-term strategy to expand the mining industry and enhance Oman’s logistics capabilities. He pointed out that the project is expected to improve the competitive edge of Omani exports, facilitate access to new markets, and deliver substantial economic benefits.
The Shuwaimiyah marine terminal is an integral part of national plans to enhance maritime transport efficiency and related infrastructure.
Rankesh Roy, CEO of JSW Infrastructure, characterized the partnership as a crucial advancement in expanding the company’s footprint in the Middle East. He emphasized that Oman’s favorable investment climate, strong regulatory framework, and supportive environment for investors are key advantages that will contribute to the project’s success. Roy reaffirmed JSW’s commitment to developing world-class maritime infrastructure that provides sustainable value to all stakeholders.
Special Analysis by Omanet | Navigate Oman’s Market
The landmark partnership between Minerals Development Oman (MDO) and India’s JSW Group signals a significant advancement for Oman’s industrial mineral sector, creating opportunities for businesses to engage in a burgeoning export market. This project not only enhances supply chain efficiency through the establishment of a dedicated marine terminal but also fosters the growth of downstream industries, presenting a rich landscape for investors and entrepreneurs to capitalize on emerging logistics and manufacturing opportunities. With the focus on attracting foreign investment, smart players should consider aligning strategies with Oman Vision 2040 to leverage the anticipated economic diversification and job creation in the region.
