MUSCAT, FEB 23 - Public bidding for the first two ‘pre-approved’ mining blocks opens on Wednesday, February 26, marking the start of a new, energetic and transparent effort to open up Oman’s promising minerals sector to local and international investment. The announcement came at a press briefing hosted by the Public Authority for Mining (PAM) on Sunday. Eng Hilal bin Muhammed al Busaidy, CEO – PAM, said the two blocks are the first of as many as 110 mineral sites distributed across the Sultanate that are being prepped by the Authority before they are offered for investment.
“The first two mining blocks, which will be offered for investment to Omani firms, are located in Muscat Governorate and North Al Sharqiyah Governorate,” said Al Busaidy. “The successful bidders will initially receive an exploration license to ascertain the quantity of the mineral – whether marble, limestone or limestone – based on which a further license for the commercial development of the deposits will be issued. This system of awarding ‘pre-approved blocks’ for investment will create sustainable opportunities for investment, as well as maximise value-addition of these minerals.”
The unveiling of the ‘pre-approved’ mining blocks schemes for investment marks the culmination of a prolonged effort by the Authority to put in place a regulatory framework for the award of these blocks against an open, competitive and transparent tendering process.
Initial studies on the suitably of mineral sites for inclusion in the ‘pre-approved’ mineral blocks scheme were undertaken by the Directorate General of Geological Research and Surveys at the Authority. The administrative, regulatory and marketing processes were formulated by the Directorate General of Mineral Investment Affairs. Assisting the effort was the Implantation Support and Follow Up (ISFU) Unit monitoring the implementation of projects proposed under the National Programme for Enhancing Economic Diversification (Tanfeedh).
While the initial two blocks on offer are home to primarily marble, limestone and dolomite resources, future preapproved blocks for investment hold rich deposits of chromite, silica, gypsum, carbonate, attapulgite, clay, basalt, laterite, and feldspars, according to officials.
The preapproved blocks have been classified into four different categories, said the CEO. Falling in the first category are blocks which will be offered as concessions for exploration and mining and covering more than five sq kilometres in area. The deposits could include precious minerals and stones.
In the second category are mineral sites covering an area of less than five square kilometres. The third category comprises larger blocks spread over 50 sq km and more, but with limited data on their mineral prospectivity, which will be offered for exploration. Finally, in the fourth category are blocks of five sq km or less, which are offered for mining.
The Authority has also outlined four different types of bidding processes based on the kinds of minerals offered up for investment. The first methodology, called ‘Public Bidding’, relates to blocks that are open to both Omani and international investors.
Blocks falling in ‘Local Bidding’ are restricted to investment by Omani players. Falling in the ‘Limited Bidding’ process are blocks that are open to specific local and international companies or both.
Blocks offered under the ‘Limited Single Source’ bidding process are offered to local and international companies that are specifically invited to make the best financial offer during negotiations.
(Picture by Khalfan al Tobi)
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