As part of its Vision 2040, the Government of Oman has identified a number of strategic sectors that are key catalysts to support the country’s growth and development as it attempts to transition away from its traditional hydrocarbon economy. Mining has been highlighted as one of the top priority sectors and it is not hard to see why.
Mining in Oman dates back to the third millennium BC when the country was a significant regional copper producer. Due to its strategic position as a major regional trading hub, Oman became historically known as Majan — the land of copper. Over the past 50 years, various local and international explorers, geologists and academic researchers have contributed to the establishment of Oman’s mineral inventory and provided astonishing insight and understanding of the variety of minerals, lithology and deposits currently present.
Offering an exposed ophiolite geological outcrop containing minerals such as copper, gold, silver, chromite, lead, nickel, manganese, zinc, dolomite, limestone, gypsum, silica, cobalt, marble and iron, Oman’s untapped mineral resources have the potential to unlock major economic value, ensuring that mining becomes the next resource industry to support future growth in the Sultanate of Oman.
Oman's mining industry already has a successful track-record of producing high-quality mineral resources, with the country being the first GCC producer and exporter of ferrochrome with production reaching 210,000 metric tonnes in 2020 contributing 1.4% to the country's GDP, a sizeable increase from 0.6% in 2019 with the country exporting over $1.5 billion worth of minerals and mineral products which the government aims to increase to 10% by 2040.
In 2017, the Sultanate of Oman surpassed Thailand as the largest exporter of gypsum in the world, seeing a total of 7.4 million tonnes of gypsum supplied to major international markets. In 2020-2021, that numbers changed dramatically, with Oman accounting for 44.4% of the world’s gypsum supply, covering roughly 17.5million tonnes per year. As a result, Oman has been dominating the regional export markets of Asia, South & Eastern Africa and the GCC.
In order to capitalise on this momentum and achieve its Vision 2040 targets for mining, the Government has started to invest a significant amount of resources to progress and further develop the industry – its main investment being a $260 million injection into Minerals Development Oman (MDO) – the Sultanate of Oman’s flagship mining holding company that oversees a growing portfolio of mining assets and projects.
Despite these significant developments, Oman’s mining sector remains largely untapped and undeveloped, and this opens the door for major business opportunities such as:
- Exploration and processing of metallic minerals such as gold, Ccopper, chromite and magnesium
- Exploration and processing of non-metallic minerals such as marble, limestone, dolomite and gypsum
- Establishing manufacturing plants and quarries for non-metallic minerals
- Provide technical expertise and know-how and
- Market identification and promoting local produce to identified export markets.
With the country's strategic location and stability investor-friendly policies and well-established infrastructure, Oman is becoming an attractive destination for foreign direct investment (FDI), and the Government is establishing an inventory of regulatory measures and structures to actively incentivising FDI into mining for both local and international investors, developers and companies.
In conclusion, investment in the mining sector in Oman presents significant prospects and has numerous benefits and potentially positive financial returns for both investors (local and foreign) and the people of Oman. With the country’s rich mineral deposits, favourable business and tax incentives, a well-established infrastructure, strategic location, and a supportive regulations and processes, investors can expect to see positive financial returns on their investments with generous growth prospects ahead.
Dr Yousuf Hamed al Balushi
yousufh@omaninvestgateway.com
www.omaninvestgateway.com
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