Minerals Development Oman (MDO) is happy that 12 Royal Decrees have been issued to approve mining concession agreements. These 12 Royal Decrees give MDO 12 concession areas for exploration and mining.
The pacts are in line with the newly adopted strategy of the Ministry of Energy and Minerals to develop the minerals sector through concession agreements that include legal, technical, and financial terms to be signed between the Ministry and investors as an investment management method to lead the mechanism of managing the mined minerals found in concession areas.
The agreements cover a total of about 21,480 square kilometers/km2 of concession areas. There are a number of possible minerals there, mostly metallic strategic minerals like copper, gold, and chromium.
The agreements cover eight sites, most of which are in Al Batinah North and South, Al Dhahirah, Al Buraimi, Al Dakhiliyah, and Al Sharqiyah North and South. All of them are exploration-to-mining concession areas. One site in the Wilayat of Yanqul is a copper concession area that has reached a stage where it is ready to be mined. It is a 20-square-kilometer area.
Read on : Company Incorporation in Oman
En.Nasser bin Saif al Maqbali, CEO of MDO, said, “Today is a big day for MDO because the 12 Royal Decrees that approve mining concession agreements are being signed. This is a historic moment.” This will help MDO spread the word about its plans to invest in exploration programmes for a number of strategic minerals, which will be the backbone of an Omani mining industry that is large and well-run.
He also said, “It is hoped that this will help Oman attract strategic partnerships, get the most out of the mining industry, and make Oman a good place for mining investment around the world.” It will also promote sustainable development and social responsibility by building national capabilities, rehabilitating mining forces, and realising that the mining sector plays a big role in building up local communities and helping small and medium-sized businesses.
By figuring out where the concession areas are in the minerals sector, the Ministry hopes to make the licencing system work better by:
- Contributing to the creation of an integrated database are geological, geophysical, and exploration surveys that cover most of the Sultanate of Oman. This is done to create an organised and sustainable source of mining opportunities in Oman where investors can explore all the minerals available in the concession areas.
- The concessions include all the rules about the government agencies that are in charge, such as environmental rules. This means that investors will be able to get approvals from these agencies and move smoothly from the exploration phase to the mining phase.
- Providing the right size and amount of primary metal ores so that they can be used commercially in the minerals processing operation to increase the concentration levels and, as a result, the market value. With these amounts of mineral reserves, Oman will be able to build mining and manufacturing industries that will add value to the mineral ores that are already there.
- By making a long-term agreement with the investor, we can make it easier for banks to give money for investments in the mining sector.
- Focusing the Ministry’s efforts and resources on high-strategy minerals (metallic minerals) by bringing in international specialised companies and making it possible for mining industries to be set up and jobs to be made in many different fields.
Earlier, MDO announced that an airborne survey to look for metallic minerals would begin. This survey is being done with the Ministry of Energy and Minerals (MEM) and a number of other government agencies.
Keep reading : LLC Company Registration Service in Oman