18 January 2017
A E James
Muscat: State-owned Oman Mining Company (OMC) plans to restructure its operations with additional investment from private investors, especially from global players who can provide modern technology.
Oman Mining Company, which discontinued its operation few months ago, is looking for global investors for investment as well as technology to relaunch the premier firm on a new platform, Abdulsattar Al Murshidi, chairman of OMC, told Times of Oman.
“Right now, the company is going through a restructuring process because the original mines have been depleted and it relied on imports for feedstock for the last ten years,” added the chairman, while talking on the side lines of Oman Minerals and Mining Exhibition and Conference here.
However, with a wide fluctuation in metal prices since 2015, it was not feasible to continue that business model as the company needs its own domestic mines.
While assets have been discovered lately, it needs to be developed and the company is looking for foreign partners for major development programmes.
“We have issued an expression of interest globally. We are looking at global investors to come and join us.”
Al Murshidi said that the company, which was formed almost 35 years ago, proposes three models for foreign participation. The foreign firms can enter as a joint venture partner with OMC for developing mines or as an investor (and OMC will operate mines) or jointly operate.
Oman Mining Company’s main mines, which have copper and gold deposits, are in block 10 in Yankul area. The OMC chief said that the company’s old smelter, which discontinued operation, requires reburbishment as it is not efficient. “So, it is costly to produce.”
Therefore, the plan is to either build a new smelter or refurbish the old one, which will depend on the findings. “We are also getting proposals for refurbishing from different parties.”
“If we develop new resources, we may go for concentrates or go all the way to produce final product. We are all busy with the development of the new field. We are at the stage of studies and inviting investors,” added Al Murshidi.
A E James
Muscat: State-owned Oman Mining Company (OMC) plans to restructure its operations with additional investment from private investors, especially from global players who can provide modern technology.
Oman Mining Company, which discontinued its operation few months ago, is looking for global investors for investment as well as technology to relaunch the premier firm on a new platform, Abdulsattar Al Murshidi, chairman of OMC, told Times of Oman.
“Right now, the company is going through a restructuring process because the original mines have been depleted and it relied on imports for feedstock for the last ten years,” added the chairman, while talking on the side lines of Oman Minerals and Mining Exhibition and Conference here.
However, with a wide fluctuation in metal prices since 2015, it was not feasible to continue that business model as the company needs its own domestic mines.
While assets have been discovered lately, it needs to be developed and the company is looking for foreign partners for major development programmes.
“We have issued an expression of interest globally. We are looking at global investors to come and join us.”
Al Murshidi said that the company, which was formed almost 35 years ago, proposes three models for foreign participation. The foreign firms can enter as a joint venture partner with OMC for developing mines or as an investor (and OMC will operate mines) or jointly operate.
Oman Mining Company’s main mines, which have copper and gold deposits, are in block 10 in Yankul area. The OMC chief said that the company’s old smelter, which discontinued operation, requires reburbishment as it is not efficient. “So, it is costly to produce.”
Therefore, the plan is to either build a new smelter or refurbish the old one, which will depend on the findings. “We are also getting proposals for refurbishing from different parties.”
“If we develop new resources, we may go for concentrates or go all the way to produce final product. We are all busy with the development of the new field. We are at the stage of studies and inviting investors,” added Al Murshidi.
© Times of Oman 2017
