Contracts inked for Oman’s largest copper concentrate project in Yanqul
MUSCAT: Mazoon Mining, a subsidiary of Minerals Development Oman (MDO), has successfully secured OMR 104 million ($270 million) in strategic financing from leading local and regional banks. In parallel, the company signed a number of construction and service contracts with local contractors to commence the development of Oman’s largest integrated copper concentrate project.
The agreement signings took place during the “Rawabit” Forum, organised by Oman Investment Authority (OIA), underscoring strong institutional confidence in the project’s strategic importance and its pivotal role in advancing the Sultanate of Oman’s mining sector.
Located in the Wilayat of Yanqul, A’Dhahirah Governorate, the project spans 20 square kilometres and aims to produce approximately 115,000 tonnes of copper concentrate annually, with a purity of 21.5%, based on confirmed reserves estimated at 22.9 million tonnes of copper ore.
The project’s financing was arranged through strategic partnerships with several of the region’s foremost financial institutions: Sohar Islamic Bank, National Bank of Oman, Qatar National Bank, Bank Nizwa, Ahli Bank, and Ahli Islamic Bank.
The offer attracted substantial interest and was oversubscribed by more than two times, reflecting strong market confidence in the project’s long-term potential and financial resilience. This achievement marks Mazoon Mining as one of the most attractive and mature investment opportunities in Oman’s mining sector.
To support project execution, Mazoon Mining signed a number of key construction and service contracts, including: Transport and Logistics Services with ASYAD Group, Oman’s national logistics arm; Power Line and Substation Construction with Oman National Engineering and Investment Company (ONEIC); And Bulk Earthworks with STRABAG Oman.
These packages are expected to bolster local private sector participation, stimulate economic activity, and enhance the project’s contribution to national value creation.
Eng. Mattar Salim Al Badi, CEO of MDO, stated: “Securing this financing represents a strategic milestone that confirms the project’s readiness to enter the execution phase. The funds cover nearly 60% of the total project cost, and the signing of these construction and service packages ensures that work proceeds according to the established schedule.”
He added that the project has undergone extensive preparatory work, including the appointment of Lycopodium (Canada) for EPCM (Engineering, Procurement, and Construction Management), and the signing of equipment supply agreements with Metso, a global leader in mineral processing solutions. These foundational steps further strengthen the project’s capacity to meet its ambitious objectives under MDO’s strategy to sustainably harness Oman’s mineral wealth.
With global demand for copper surging—particularly across sectors such as renewable energy and advanced technologies—the Mazoon Copper Project positions Oman as a key regional hub for copper concentrate production, leveraging the Sultanate of Oman’s strategic location and global market access.
The project also places high emphasis on environmental sustainability, incorporating a zero-liquid-discharge system and advanced waste management technologies. Additionally, it will generate tangible socio-economic benefits, including job creation, SME development, and broader stimulation of the local economy.
MDO currently holds 14 mining concessions covering an area of 23,763 square kilometres, with a clear focus on the exploration and development of high-value metallic minerals. This aligns with Oman Vision 2040, which seeks to build a diversified and sustainable economy while maximizing value from the nation’s natural resources.
Date: 13 May 2025
Source: ONA
