In a landmark development for Oman’s mining sector, Minerals Development Oman (MDO), has signed a mining concession agreement with the Ministry of Energy and Minerals (MEM).

This agreement empowers MDO to explore and develop strategic minerals within concession area 51F, located in the Al Wusta Governorate, covering 2,156 sq km in the Wilayat of Mahout. The area holds high-value deposits of silica, limestone, and dolomite - critical minerals poised to drive industrial growth and economic diversification in Oman.

Silica is in increasing demand, driven by industries such as glass manufacturing, renewable energy technologies (e.g., solar panels), and energy storage. In 2021 the glass industry emerged as the largest consumer of silica sand in the region, a trend that shows no signs of slowing. According to a Syndicated Analytics Report for GCC Silica Sand Market, projections estimate a compound annual rate growth of 6.7% from 2022 to 2027, reaching $513.5 million by 2027.

Diversifying mineral portfolio

MDO’s new concession positions the company to become Oman’s first silica sand miner, advancing its strategy to diversify its mineral portfolio and tap into new growth opportunities. Silica sand, also known as industrial sand, is primarily composed of quartz and valued for its high silica content, strength, and non-reactive properties —qualities essential to industries like glass, solar technology, and chemicals. Preliminary studies indicate that the site holds significant reserves of silica ore, with purity levels reaching above 97% naturally.

The signing of this agreement reflects the shared confidence of MDO and the Ministry of Energy and Minerals in the long-term viability and commercial potential of the concession area.

Nasser Al Maqbali, CEO of MDO, remarked: "This agreement underscores MDO’s commitment to harnessing the nation’s mineral wealth to create investment opportunities, generate employment, and drive sustainable industrial development. Our exploration of silica resources reflects Oman’s untapped potential to support critical industries, especially those related to the energy transition.”

With this new agreement, MDO’s total concession area has expanded to 24,119 sq km, reinforcing the company’s role as a key player in supporting Oman’s economic diversification and strengthening industrial capacity. The focus on silica aligns with Oman’s national objectives, particularly in advancing the energy transition and expanding the industrial base.

Strategic projects and regional impact

Beyond being an asset owner, MDO positions itself as a catalyst for regional mining sector development. Each project aims to generate value for investors while ensuring direct benefits to local communities through employment and economic empowerment.

Throughout 2024, MDO has undertaken several strategic exploration projects targeting key minerals such as copper, chromite, gypsum, limestone, dolomite, salt and hard silica. Earlier this year, the company celebrated the groundbreaking of the Lasil and Al Baydha Copper Mines Redevelopment Project in Sohar, Liwa. This project aims to produce 800,000 tonnes of copper ore per year after confirming 2.78 million tonnes of commercial-grade copper reserves.

In the coming months, MDO will announce the commencement of construction on the Yanqul Copper Project, led by its subsidiary Mazoon Mining. Located in the Yanqul region, Mazoon Mining was granted exclusive rights by the Ministry of Energy and Minerals in 2022 to explore, develop, and produce copper concentrates, with gold as a secondary by-product.

Following extensive feasibility studies, the Canadian firm Lycopodium was appointed as the EPCM contractor, aiming to break ground by the end of 2024. This project marks a significant milestone for MDO, positioning Oman among copper-producing nations and contributing to the country’s economic diversification efforts.

Al Maqbali said: "With these projects, MDO is becoming a key player in the region’s mining industry and helping Oman achieve its goals of economic diversification and sustainable growth. By focusing on strategic minerals and building impactful partnerships, we are committed to boosting the mining sector’s role in the national economy."

Commitment to responsible mining

MDO’s growth strategy is centered on responsible mining, community collaboration, and local economic empowerment, particularly in remote areas. The new silica project will translate these values into action through training local Omanis to develop industry-relevant skills, engaging local suppliers for transportation, logistics, and construction, adhering to Omanisation targets to boost local employment and foster community development.

With an expanding portfolio of projects and a commitment to Oman’s sustainable development goals, MDO is shaping the future of the sultanate’s mining industry, unlocking new opportunities, and driving industrial progress for a prosperous and sustainable future.

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