MUSCAT, AUG 27
Oman Chromite Company has successfully brought a new chromite ore mine into production within its vast 11A Concession Area in Al Buraimi Governorate, marking a significant operational milestone that, together with the launch of the Jibjiba mine operated on behalf of Minerals Development Oman (MDO), is helping position the company for stronger growth in 2026 and beyond.
The new operation under Concession Area 11A represents a particularly important breakthrough for Oman Chromite, which has been working to reverse a decline in chromite ore production by expanding its resource base and developing new mining opportunities. The company obtained its first mining permit within the concession at the end of June and subsequently commenced operations, officials explained in a discussion with the investor community focused on the Oman Chromite’s financial performance in the first half of this year.
Oman Chromite was awarded the 1,438-square-kilometre concession in Al Buraimi under an agreement signed with the Ministry of Energy and Minerals in October 2024. The wider area remains under exploration and resource development, but the commencement of initial mining marks the transition of 11A from a purely exploration-led project into an operating asset.
The milestone comes shortly after Oman Chromite began production at the Jibjiba chromite mine in May. The mine is owned by MDO, while Oman Chromite has been appointed as operator under a mining cooperation arrangement - providing the company with an additional source of production and a new revenue stream without requiring ownership of the underlying resource.
The twin developments are expected to underpin a sharp improvement in Oman Chromite's operational performance, officials said. The company expects to produce around 75,000 tonnes of chromite in 2026 and sell between 83,000 and 85,000 tonnes, with sales exceeding production partly because it is reducing inventory to strengthen liquidity.
Including material handled through the Jibjiba operation, Oman Chromite expects total volumes handled during the year to reach approximately 123,000 tonnes - potentially a historic record for the company. Management estimates that the MDO operating arrangement could contribute around 30 per cent of Oman Chromite's profit during 2026.
The expansion comes after a strong first-half financial performance, despite disruption to regional supply chains and shipping. Sales rose 33 per cent year-on-year to 58,000 tonnes, while revenue increased 49 per cent to approximately RO 3.5 million.
However, management cautioned that the outlook remains affected by geopolitical developments and elevated shipping costs, which have influenced global chromite prices and increased logistics expenses.
Looking beyond 2026, the company sees Concession Area 11A as a potential platform for sustained expansion. Management has indicated an ambition to grow production by approximately 10 - 20 per cent annually, although it has not yet provided a firm forecast for 2027 as exploration and resource delineation continue.
Based on preliminary geological work, the company believes the concession could potentially support mining operations for at least four to five years, subject to further drilling and confirmation of reserves under internationally recognised JORC standards.
Oman Chromite is also examining the longer-term potential for underground mining. While still at an early engineering stage, the initiative could open additional opportunities to recover chromite resources economically from deposits that are unsuitable for conventional surface mining.
Oman Observer is now on the WhatsApp channel. Click here
