Oman's mining sector is a fundamental pillar of its economic diversification path, given the Sultanate of Oman's varied mineral wealth, which includes copper, chrome, manganese, gypsum, limestone and silica. The sector is viewed as an important source of government revenue and a driver for enhancing local added value through the development of downstream mining industries and the expansion of investments in exploration, production and processing.

According to the latest data, the value added of the mining sector reached approximately RO 219 million in 2024, contributing about 0.6% of the GDP at constant prices. The data also indicates that the sector's real growth rate during the 2021–2024 period registered a decline of about -2.0%, reflecting structural challenges in investment and production, alongside delays in some projects and mineral processing.

The new Mahout Silica Sands Project presents a strategic opportunity to change this. With 47 million tonnes of proven, high-purity (exceeding 98%) reserves, this project is a major national asset.

This discovery must be leveraged as the foundation for a complete industrial cluster. By clustering processing, manufacturing and support services, Oman can develop high-value downstream industries in glass, chemicals, metallurgy and even semiconductors. This approach is the only way to transform a natural resource into a durable source of skilled jobs, new technological capabilities and sustainable economic value.

Silica is the backbone of everyday manufacturing. It feeds float and container glass, sanitaryware and ceramics, fiberglass and foundry sand — and, if purity allows, solar glass for the energy transition. According to the US Geological Survey (USGS), global industrial sand and gravel output is on the order of 400 million tonnes annually, with glass-consuming sectors taking a large share. The International Energy Agency (IEA) projects global solar photovoltaic (PV) capacity to roughly triple by 2030 under stated policies, signalling rapid growth in solar glass demand. Meanwhile, global trade in glass and glassware exceeds $100 billion a year, according to United Nations trade statistics. In short: the world needs more high-spec silica products, reliably supplied.

First, the resource appears good enough to justify processing at home. Early assays indicate high SiO₂ content with low contaminants and a multi‑decade reserve base. That supports beneficiation — washing, grading and magnetic separation — to meet international specifications. With disciplined quality control and steady feedstock, primary processing can anchor downstream lines for glass and ceramics, giving lenders and buyers confidence.

Second, markets and logistics favour value‑addition in Oman. Industrial zones linked to reliable power and water; and deep‑water ports on open sea lanes, offer predictable routes to market. Demand for container and architectural glass continues to rise across the region; PV glass is the fastest‑growing segment as building codes tighten and renewable energy expands. Co‑locating plants near the resource and port shortens supply chains, reduces waste, and boosts on‑time delivery — advantages buyers will pay for.

Third, clustering multiplies benefits. A designated Silica Cluster Zone that co‑locates an anchor processor with small and medium enterprises (SMEs) creates a web of local services: kiln and furnace maintenance, mould making, precision grading, laboratory testing, packaging and logistics. Over time, these firms turn imported machinery into an Omani capability. That is private‑sector dynamism of the kind Oman Vision 2040 seeks to nurture.

The new Mahout Silica Sands Project presents a strategic opportunity to change this. With 47 million tonnes of proven, high-purity (exceeding 98%) reserves, this project is a major national asset.

Fourth, good governance reduces risk and cost. Clear Environmental, Social and Governance (ESG) baselines; early Environmental Impact Assessment (EIA); and consistent reporting lower financing costs because lenders prize predictability. Joint ventures with experienced operators bring Foreign Direct Investment (FDI), technology transfer, supplier development and access to premium markets. Prudence, not haste, should guide each permit and contract.

Some argue we should export raw silica quickly and leave downstream investment for later. That recognises near‑term prices but locks Oman into a low‑margin, high‑volatility cycle. A balanced approach is better: maintain modest raw exports under long‑term offtake while advancing pilot processing and then commercial lines. This preserves revenue today while building capability for tomorrow — steady, not speculative.

What should we do now? The task is to organise steps we already know, apply them consistently and measure results in the open. Three priorities stand out, each tied to clear roles, timelines and metrics.

First, publish a concise resource snapshot that the public and investors can trust: verified purity/grade, estimated reserves and tonnage, location, discovery date, and logistics to port. Confirm suitability for float and container glass, sanitaryware and ceramics, fiberglass and foundry sand; state that solar‑glass potential depends on final iron and grain‑size assays. Then designate a Silica Cluster Zone linking the deposit to power, water, roads and port capacity, with parcels reserved for an anchor glass investor, beneficiation, and SME yards. Shared utilities and short feedback loops raise reliability and lower unit costs.

Second, adopt an investment model that brings know‑how. Pursue FDI through joint ventures that commit to technology transfer, local supplier programmes and market access. The Ministry of Commerce, Industry and Investment Promotion (MoCIIP) can run a transparent anchor‑investor process with performance‑based incentives and a published scorecard. The Ministry of Energy and Minerals (MoEM) can align concession terms with responsible production and secure feedstock for downstream plants. Together — and working with the Port and free‑zone authorities — they can keep approvals predictable while improving Oman’s business ecosystem in a measured, diplomatic way: expand single‑window licensing so firms file once and track status online; deepen the Invest Easy portal; streamline overlapping inspections; and strengthen the customs single window. These are service improvements, not new subsidies and they give Oman a quiet competitive edge.

Third, crowd in private capital while building people and standards. Create a targeted credit window for processing equipment and offer partial‑risk guarantees for first‑of‑a‑kind lines. Align development‑bank terms with export and local‑content milestones so support is earned by performance. Partner universities and technical and vocational education and training (TVET) institutes to test beneficiation routes, certify to international specifications and train operators, quality technicians and maintenance teams on a pilot line. Set practical operating indicators — water recycling and energy per tonne — and require quarterly reporting as part of ESG.

Oman’s silica discovery is not simply sand; it is optionality. If we cluster processing and manufacturing, build skills, enforce clear standards and publish results, we will create skilled jobs and durable exports while honouring our stewardship.

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