In an effort to reorganise the mining sector and give priority to local industries over the allocation of raw materials, the Ministry of Commerce and Industry (MoCI) is working to amend Oman's existing mining law.
Issued in 2003, the mining law regulates concessions for mining activities in the sultanate, but despite recent growth in mineral production, the total value of mineral product exports declined by 31 per cent to RO422mn in 2011 compared to RO612.7mn in 2010.
Speaking to Muscat Daily on the sidelines of the first Ramadan Evening organised by the Oman Chamber of Commerce and Industry (OCCI) at its headquarters on Tuesday, H E Ali bin Masoud al Sunaidy, the Minister of Commerce and Industry, said that Oman's mining sector needs to be reorganised.
He said, "The objective is to give priority to the local factories for the allocation of raw materials. When we are exporting the raw materials we need to look at the true value of these raw materials so that we can maximise the local benefits without hammering the profitability of exports."
Last year, a German engineering and consulting firm Brenk Systemplanung won a contract from MoCI to evaluate Oman's rapidly growing mining and mineral sector. H E Sunaidy said that the German consultant submitted proposals last week.
He said, "The objective is also to lift the standards of safety and environment in the mining sector. The proposal has to go to the cabinet for approval and it has to take its process accordingly."
The minister said that in terms of issuing mining licences, priority should be given to the national companies rather than individuals and the issue of transfer of mining licences also needs to be examined.
As the investments in the mining and quarrying sector havebeen rising in recent years, the sector is witnessing a significant growth in the production of key minerals.
According to latest statistics released by MoCI, the production of gypsum jumped by 92 per cent to 1.25mn metric tones (MT) in 2011 from 653,000MT in 2010. Output of limestone climbed by eight per cent to 4.99mn MT in 2011.
The output of marble grew by 34 per cent to 931,000MT, while copper production rose by 28 per cent to 111,400MT in 2011. The production of chromite stood at 616,600MT, while manganese production was at 41,350MT in 2011.
The MoCI figures do not include production from Dhofar Governorate, whose mineral industry has also witnessed rapid growth in recent years.
Significant growth in the production quartz, aggregates, silica sand, clay and industrial salt were also reported last year.
© Muscat Daily 2012
