Oman’s minerals sector is experiencing a transformative year following the issuance of 26 new mining licences in 2024 by the Ministry of Energy and Minerals. This milestone, coupled with the launch of commercial copper exports, marks a significant stride toward economic diversification under the Oman Vision 2040 framework. The Ministry’s annual report for 2024 details the allocation of 14 permanent mining licences and 12 exploration licences across strategic governorates, including Dhofar, Al Wusta, Al Sharqiyah North, Al Batinah, and Al Dhahirah. These licences encompass a diverse range of resources such as gypsum, limestone, chromite, copper, iron ore, marble, and various construction materials, signaling a robust push to unlock the Sultanate’s untapped mineral wealth. This article delves into the implications of this development, the resources targeted, and the broader vision driving Oman’s economic evolution.
A Landmark Year for Oman’s Mining Industry
The issuance of 26 new mining licences in 2024 represents a pivotal moment for Oman, a nation historically rich in mineral resources yet only recently accelerating its mining sector. The Ministry of Energy and Minerals, formed under Royal Decree Number 75/2020 by merging the Public Authority for Mining with oil, gas, and renewable energy sectors, has spearheaded this growth. This restructuring aims to enhance transparency, streamline regulations, and attract investment, aligning with Oman Vision 2040’s goal of reducing dependency on hydrocarbons. The launch of commercial copper exports, a historic re-entry into the global market after nearly three decades, further underscores the sector’s resurgence, with projects like the Al Ghuzayn Copper Project in Al Khaboura setting the pace.
The licences, spread across five key governorates, reflect a strategic approach to leveraging Oman’s diverse geology. Dhofar, known for its mineral-rich southern terrain, and Al Wusta, with its vast desert expanses, join northern regions like Al Batinah and Al Sharqiyah North, as well as Al Dhahirah, to form a network of mining hubs. This geographic diversity not only mitigates regional risks but also optimizes resource extraction across the Sultanate.
Diverse Resources Fueling Growth
The 26 licences cover a broad spectrum of minerals, each playing a critical role in Oman’s economic diversification. Gypsum, a global export leader with reserves exceeding 30 million metric tons, saw 12.4 million tonnes exported in 2024, accounting for 35% of total mineral exports. Limestone, with a 49% export surge to 7.4 million tonnes, supports construction and industrial applications, while chromite, with its 30 million metric ton reserves, meets rising demand for ferrochrome, particularly from China. Copper, revitalized through projects like Al Ghuzayn and Wash-hi, exported 24,000 tonnes in 2024, marking Oman’s return as a copper supplier. Iron ore, marble, and construction materials round out the portfolio, catering to domestic infrastructure needs and international markets.
These resources align with Oman’s strategy to shift from raw material exports to value-added processing, as emphasized by the Ministry’s Industry Development of Energy and Minerals unit. The Law of Mineral Wealth of 2019, with its five-year minimum licence period and flexible royalties, provides a stable framework to attract investors, though foreign firms often navigate bureaucratic and environmental hurdles as joint venture partners with Omani entities.
Strategic Governorates and Economic Impact
The distribution of licences across Dhofar, Al Wusta, Al Sharqiyah North, Al Batinah, and Al Dhahirah highlights a deliberate effort to balance regional development. Dhofar’s southern location near the Yemeni border offers proximity to maritime trade routes, while Al Wusta’s central position supports large-scale operations like the Ahjaar gabbro project, targeting 2.4 million tonnes annually. Al Sharqiyah North and Al Batinah, with established mining histories, host copper and gold projects in Yanqul and Sohar, respectively, while Al Dhahirah’s ophiolite-rich mountains bolster chromite and copper exploration.
This expansion has yielded tangible results, with 2024 mineral ore production reaching 67.7 million tonnes, generating OMR 114.3 million ($297 million) from 62.5 million tonnes sold. Exports of 35.9 million tonnes, led by gypsum, underscore the sector’s global reach. The Al Ghuzayn Copper Project, with a $112 million investment, aims to extract six million tonnes over six and a half years, creating 50 direct jobs and supporting local communities with 1% of output, per the Mineral Wealth Law. These efforts contribute to Vision 2040’s target of boosting non-hydrocarbon exports to 26.9% of GDP by 2023, a trend continuing into 2025.
Aligning with Oman Vision 2040
Oman Vision 2040, launched by His Majesty Sultan Haitham bin Tarik, envisions a diversified, sustainable economy by 2040, with mining as a cornerstone. The Ministry’s issuance of licences and focus on copper exports align with this blueprint, reducing reliance on oil and gas, which historically dominated 70% of export earnings. The digital transformation, including an online bidding platform, enhances transparency and attracts national and international players like Minerals Development Oman (MDO) and foreign joint ventures.
The sector’s growth also supports infrastructure goals, with ports like Duqm and Sohar facilitating exports, and renewable energy integration—such as solar-powered desalination—complementing mining sustainability. The 1 million tonne annual copper concentration plant planned with an Australian partner exemplifies downstream processing ambitions, aiming to maximize local value addition and job creation.
Challenges and Opportunities Ahead
Despite progress, challenges persist. The 14% drop in 2024 production to 67.7 million tonnes, attributed to reporting delays, signals operational hurdles. Environmental concerns, particularly water usage in arid regions, and bureaucratic complexities for foreign investors could slow momentum. However, opportunities abound, with untapped reserves of cobalt, nickel, and rare earths in Oman’s ophiolites, and a projected $779 million GDP contribution by 2030. The Ministry’s exploration licences, targeting new deposits, position Oman to capitalize on global demand for critical minerals amid decarbonisation and electrification trends.
The issuance of 26 new mining licences in 2024, alongside the resumption of copper exports, heralds a new era for Oman’s minerals sector. Spanning governorates from Dhofar to Al Dhahirah, these licences unlock a wealth of gypsum, limestone, chromite, copper, iron ore, marble, and construction materials, driving economic diversification under Oman Vision 2040. While challenges like production delays and environmental oversight remain, the sector’s growth—supported by strategic investments and technological advancements—positions Oman as an emerging mining powerhouse. As the Sultanate bridges its resource-rich past with a sustainable future, the global market watches its ascent with keen interest.