MUSCAT, FEB 15
Oman Chromite, a publicly-traded mining firm partly owned by Minerals Development Oman (MDO), says it anticipates a positive upturn in its financial and operational performance on the back of a number of notable milestones achieved during 2024.
Most significant has been the acquisition of a new mining concession which, upon development, is set to bolster access to new chromite ore deposits and reverse a decline in availability of this key commodity.
“The company’s acquisition of an exploration and mining concession for Area 11-A, located in northern Oman with an area of 1,438 km², represents one of the most significant achievements in its history,” said Humaid bin Masoud al Muqbali, Chairman of the Board of Directors.
“This area is expected to help address previous challenges such as the lack of available sites and the depletion of ore reserves in the company’s old mines. Exploration activities have already commenced,” he added in the Directors’ Report for fiscal 2024.
Despite production stoppages linked to weather-related disruptions during the year, Oman Chromite performed moderately well operationally and financially, according to the Chairman.
Chromite ore (also known as chrome ore) is processed to make metallic chromium, which is used in the production of stainless steel, in chromium plating, and as an alloy in cast iron and steel. Chromium compounds are also used as colours in paint, ceramics, and plastics, and as a catalyst in making chemicals and refining oil. Additionally, it is used as a refractory in furnace linings.
Production of chromite ore totaled 70,817 tonnes in 2024, reflecting a 19 per cent increase compared to the previous year, the company said. However, sales and exports dipped 13.88 per cent to about 74,780 tonnes, down from 86,840 tonnes a year earlier. “This decline is attributed to capitalizing on the high prices in 2023 and the availability of large stockpiles due to accumulated production from previous years,” the Chairman stated.
Reflecting this trend, revenue from sales amounted to RO 4.9 million in 2024, down from RO 5.9 million for the previous year. Net profit declined to RO 1.001 million, down from RO 1.631 million in 2023.
However, buoying earnings for the company was its 20 per cent stake in Gulf Alloys and Metals (FZC) LLC, which brought into operation its low-carbon ferrochrome plant at Sohar Freezone last year. A second production line commenced operations in January this year, promising to further bolster returns for Oman Chromite.
Established by Royal Decree in 1991, Oman Chromite produces metallurgical and refractory chromite ores for a variety of industrial applications. In June 2022, the company entered into a joint arrangement with MDO – a subsidiary of Oman Investment Authority (OIA) - to share the cost of exploration, evaluation and feasibility phases covering the development of two sites at Liwa and Mahdha. MDO has a 25.4% stake in Oman Chromite.
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