Unified marketing to boost value creation in Oman’s mineral sector

MUSCAT: Oman is moving to tighten control over mineral exports and redirect more raw materials towards local industry, Energy and Minerals Minister Salim bin Nasser Al Aufi said at the fourth edition of Together We Advance Forum in Muscat, signalling a firmer approach to what he described as market distortions and low-grade shipments.
Al Aufi told participants that stronger export governance is needed to prevent what he called significant “distortion” in the way resources are marketed and shipped abroad. He argued that increasing ore concentration raises its value, and said Oman wants more material upgraded and supplied to domestic processing and manufacturing rather than leaving the country in low-value form.
A central pillar of the new approach is routing exports through Oman Minerals Trading Company, which is tasked with organising marketing and exports in order to raise in-country value from natural resources and strengthen Omani bargaining power in global markets.
The framework gives priority to meeting local demand for key raw materials before any exports are approved. It also tightens controls on gypsum and chromite exports, including a requirement that exported chromite ore must have a minimum concentration of 36%. Processed chromite may be exported at any concentration, subject to approval by the Ministry of Energy and Minerals.
Officials say the move responds to long-running structural challenges in the minerals market, including the proliferation of intermediaries and the absence of specialised marketing mechanisms—factors that have weighed on realised prices despite higher production.
According to official figures, Oman had 15 active gypsum mining licences and produced around 14 million tonnes in 2024. Chromite had 29 active licences, with production of about 300,000 tonnes in the same year. Policymakers say the numbers underline both the scale of resources and the need for unified, institutional management to maximise national returns.
The new trading model is expected to centralise export management, unify contracts and specifications, and negotiate with international buyers on more professional terms. The government also expects it to curb price manipulation, improve transport and export efficiency, raise transparency, and expand opportunities for local processing, employment and SME participation across supply chains.
A one-year transition period has been set to allow companies to conclude existing contracts and adapt to the new marketing mechanism. The ministry also plans awareness sessions and training for stakeholders, alongside developing specialised commercial capabilities for sales and negotiation within the new framework.
Al Aufi also highlighted a gap in accurate data on the presence of rare minerals, saying clearer geological information is needed before entering partnerships or opening the market more widely. He indicated that specialised national exploration work should come first, and that broader market opening should follow only once the resource base is properly.