MUSCAT, JUNE 25 - After a hiatus of around 14 years, copper mining activities in the Sultanate are set to resume in earnest following the formal award of a mining licence to Al Hadeetha Resources for the development of an integrated copper mining project in the Wilayat of Al Mudhaibi in North Al Sharqiyah Governorate. Total investment in the project is estimated at RO 25 million, although revenues expected to be generated over the initial 10-year life of the venture is projected at an impressive RO 200 million.
The formal launch of the project was celebrated at a ceremony held at the premises of the Public Authority for Mining (PAM), the sector’s regulator. Eng Hilal bin Mohammed al Busaidy, CEO of the Authority, presided over the event. Also present were the top executives representing the joint venture partners of Al Hadeetha Resources, notably Sayyid Khalid bin Hamad al Busaidy, Chairman of Al Hadeetha Investment Services, and Justin Richards, CEO of Alara Resources, an Australian based international mining development firm. In remarks to journalists, PAM Chief Executive Officer Hilal al Busaidy described the award of the mining licence as the culmination of continuous efforts by the Authority “to develop the mining sector in the Sultanate, diversify the sources of income, optimise investments inflows into the mining sector and increase its added value”.
“We are happy to see the commencement of this project, which is very important from two key standpoints. Firstly, it will prove immensely beneficial to the Omani economy, and secondly, it will mark the resumption of copper mining in the Sultanate after a break of about 14 years. Overall, the benefits will extend beyond mining to a range of associated activities as well.” Alara’s CEO, Justin Richard, said: “This represents a major milestone for the Al Hadeetha Copper Project and for future development of the copper sector in Oman. With global demand for copper rising and further supply deficits expected to widen in the coming years, it’s the right time to be developing a new copper mine.”
The Al Hadeetha Copper Project centres on the commercialization of the estimated 16 million tons of copper deposits at Washihi – billed as the largest single copper resource in the Sultanate to date. It includes plans for a 1 million tons per annum copper concentration plant with an initial 10-year mine life. The Washihi site is located approximately 160km southeast of the Daris Copper Project and Awtad Copper Project and is set to become the next producer of copper concentrate in the Sultanate, according to Alara Resources. The project will also create around 100 openings for Omanis in various technical and administrative positions, while opening up opportunities for ancillary investments that promise to support wider socioeconomic development in the wilayat.
Conrad Prabhu
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