PHOTO
24 July 2016
Muscat - At a time when global commodity markets are hurting, Oman risks turning away prospective investors if it doesn't act quickly enough on mining-related licenses and permits. This was one of the key messages emanating from a meeting of mining industry stakeholders who met at the Grand Hyatt Muscat at the weekend to finalize the programme agenda of the next edition of the Oman Minerals & Mining Exhibition and Conference due to be held in Muscat next January.
In attendance were top officials representing a number of government and private sector organisations. They included Ibrahim Said al Amri, Project Manager of Minerals Development Oman (under formation); Henry Antwi -- Head of Mining at Oman Oil Company; Dr Salim al Busaidi, Founder of Awtad / Madaen Projects; Dr Nasir Sobhi of Sultan Qaboos University, as well as representatives from ITHRAA and Kunooz Oman Holding.
Later, in a briefing to journalists, officials voiced hope that the much-anticipated new Oman Mining Law would address many of the shortcomings currently plaguing the industry.
Articulating one such concern for investors, a representative said: "Private investors would like to see clear decisions and speedy actions by the government on their applications for licenses and permits. If I wish to apply for a mining licence, I don't want to wait for years for a response. Investors want to know where they stand with regard to that application within 3-6 months. If they don't receive a response within a reasonable period of time, they will go elsewhere with their investment."
An official representing a public sector entity added: "Mining investors are risk takers given the risky nature of the business. Commodities are susceptible to price fluctuations. In the circumstances, investors look at no longer than three-year projections when planning their investments. But if they have to wait for two years or more for a licence, all of the feasibility studies and projections they have done come to nothing."
He further added: "We hope the revised mining law will specify precise timelines and milestones for the processing of applications. This is imperative. We would also welcome clarity on issues to do with royalties, taxation, tax exemptions, and so on, in the new mining code."
On the question of incentives for mining investors, the stakeholders stressed that the industry was not looking to be coddled by the government.
"Official support is always welcome, but we do not want anything more than what is already offered to other economic activities of a comparative nature. Incentives should be decided by the Public Authority for Mining (PAM) based on the merits of each project. For example, if a mining venture is located far away from logistics infrastructure, then it's only fair that it receives some support in the form of incentives, as opposed to one that is located next door to a port, for instance."
Officials also stressed the need for investors to be made suitably aware upfront of the challenges that may crop up during the implementation and operation of a mining project. "You don't want someone to launch a quarry project and then suspend it midway, only to relaunch it later. We need continuity of operations in the national interest, and not to have projects switched on and off like a tap." Well-known event management firm Oman Expo is organising the Oman Minerals & Mining Exhibition and Conference, which will take place at Oman International Exhibition Centre during January 16-18, 2017.
Muscat - At a time when global commodity markets are hurting, Oman risks turning away prospective investors if it doesn't act quickly enough on mining-related licenses and permits. This was one of the key messages emanating from a meeting of mining industry stakeholders who met at the Grand Hyatt Muscat at the weekend to finalize the programme agenda of the next edition of the Oman Minerals & Mining Exhibition and Conference due to be held in Muscat next January.
In attendance were top officials representing a number of government and private sector organisations. They included Ibrahim Said al Amri, Project Manager of Minerals Development Oman (under formation); Henry Antwi -- Head of Mining at Oman Oil Company; Dr Salim al Busaidi, Founder of Awtad / Madaen Projects; Dr Nasir Sobhi of Sultan Qaboos University, as well as representatives from ITHRAA and Kunooz Oman Holding.
Later, in a briefing to journalists, officials voiced hope that the much-anticipated new Oman Mining Law would address many of the shortcomings currently plaguing the industry.
Articulating one such concern for investors, a representative said: "Private investors would like to see clear decisions and speedy actions by the government on their applications for licenses and permits. If I wish to apply for a mining licence, I don't want to wait for years for a response. Investors want to know where they stand with regard to that application within 3-6 months. If they don't receive a response within a reasonable period of time, they will go elsewhere with their investment."
An official representing a public sector entity added: "Mining investors are risk takers given the risky nature of the business. Commodities are susceptible to price fluctuations. In the circumstances, investors look at no longer than three-year projections when planning their investments. But if they have to wait for two years or more for a licence, all of the feasibility studies and projections they have done come to nothing."
He further added: "We hope the revised mining law will specify precise timelines and milestones for the processing of applications. This is imperative. We would also welcome clarity on issues to do with royalties, taxation, tax exemptions, and so on, in the new mining code."
On the question of incentives for mining investors, the stakeholders stressed that the industry was not looking to be coddled by the government.
"Official support is always welcome, but we do not want anything more than what is already offered to other economic activities of a comparative nature. Incentives should be decided by the Public Authority for Mining (PAM) based on the merits of each project. For example, if a mining venture is located far away from logistics infrastructure, then it's only fair that it receives some support in the form of incentives, as opposed to one that is located next door to a port, for instance."
Officials also stressed the need for investors to be made suitably aware upfront of the challenges that may crop up during the implementation and operation of a mining project. "You don't want someone to launch a quarry project and then suspend it midway, only to relaunch it later. We need continuity of operations in the national interest, and not to have projects switched on and off like a tap." Well-known event management firm Oman Expo is organising the Oman Minerals & Mining Exhibition and Conference, which will take place at Oman International Exhibition Centre during January 16-18, 2017.
© Oman Daily Observer 2016
