Oman has finalized a deal worth $520 million (OR200 million) with local firm Global Integrated Engineering to extract salt compounds from a concession in the Wusta region, as the Sultanate accelerates its push to diversify its economy through mining.
According to the Ministry of Energy and Mineral Resources, the 15-square-kilometer concession is expected to produce 1.2 million tonnes of salt annually.
Salim Al Aufi, Oman’s Minister of Energy and Mineral Resources, described the project as “a crucial strategic step that will significantly advance Oman’s economic diversification.” Production is scheduled to begin in the second quarter of next year, aiming to supply domestic demand.
This follows Oman’s awarding of a concession to Naqaa Salt Company last year for a 110 sq km site in Wusta, targeting an annual output of 400,000 tonnes of salt.
The salt concession is the latest initiative under the oversight of state-owned Minerals Development Oman (MDO), which is leading efforts to grow the country’s mining industry through projects focused on extracting silica, titanium, chromite, and copper.
MDO currently manages 14 concession areas across the country. Its exploration has identified nearly 500,000 tonnes of chromite, 111 million tonnes of high-purity silica, and 242 million tonnes of dolomite.
Meanwhile, MDO’s subsidiary, Mazoon Mining Company, is developing a copper mining project in Yanqul, about 300 km northwest of Muscat, with proven reserves of around 23 million tonnes of copper ore.
In a further boost to the sector, UK-linked Power Arabia recently announced a significant copper discovery in Oman’s northern Batnah region.
Oman is ramping up mining investment as part of its broader strategy to reduce reliance on oil revenues and generate new sources of income to address persistent budget deficits. Mining is expected to play a key role in supporting long-term economic stability.
Source: agbi.com
