MUSCAT: The Ministry of Energy and Minerals has signed a concession agreement for the exploration and mining of potash ore in Umm Al Samim, a potash rich region in the Rub Al Khali (The Empty Quarter) in the far west of the Sultanate of Oman.
This agreement was reached after the ministry approved a new methodology for developing the mineral sector. The concession agreement encompasses legal, technical, and financial aspects that will be agreed upon between the ministry and the investor. It aims to serve as an investment mechanism to manage mineral ores extracted from selected concession areas.
The agreement was signed by Eng Salem bin Nasser al Aufi, Minister of Energy and Minerals, and Nasser al Araimi, Chairman – Sinbad Mining Resources Company, for Concession Area 53-A in Sabkhat Umm Al-Sameem.
The ministry’s identification of concession areas in the mining sector is aimed at overcoming challenges related to the previous request-receiving mechanism. It also aims to establish an integrated database that includes geological, geophysical, and exploratory surveys covering all regions of the Sultanate of Oman.
Furthermore, the ministry aims to secure a regular and sustainable supply of exploration and mining opportunities in Oman while protecting the sites of raw material deposits from urban expansion and encroachment. The focus is on minerals of high economic value, such as metallic minerals, as well as attracting international companies specialized in exploration and mining. This will facilitate the establishment of mining industries and the creation of various safe job opportunities.
The ministry has been actively working to regulate investment in the mining sector. The objective is to ensure optimal utilization of the mineral resources in Oman and establish a sustainable sector that adds value. The concession areas project is one of the initiatives that will contribute to advancing the sector and promoting economic growth in Oman.
The ministry’s vision is to streamline the licensing process and expedite issuance by offering ready-to-invest concession areas. This approach will create an organized sector, reduce environmental impacts, and maximize the sector’s potential.
With a clear regulatory environment and legislative framework, the marketing process will be facilitated, saving investors time and effort. Additionally, the concession areas will position Oman on the global investment map in the mining sector, thereby strengthening related sectors such as industry, innovation, logistics, and construction.
The project will also promote sustainable development, social responsibility, capacity building, and job creation within local communities. Furthermore, it will provide opportunities for individuals with innovative ideas to launch new projects related to the mining industry, fostering increased commercial activity in proximity to the concession areas.
SOURCE: OMAN DAILY OBSERVER
DATE: 25 June 2023
