14 May 2016
Muscat - An ambitious copper-gold mining project currently under development in Dakhiliyah Governorate has the potential to generate revenues in excess of $430 million over the first 10 years of operations, according to its joint Omani-Australian promoters.
The Al Hadeetha Copper-Gold Project is being developed by Al Hadeetha Resources LLC, a locally incorporated company that is 70 per cent owned by Alara Oman Operations Pty Ltd (a wholly owned subsidiary of Australian based international mineral exploration company Alara Resources) and Al Hadeetha Investments LLC of the Sultanate.
The venture aims to commercialise the potentially prodigious mineral potential -- copper deposits with associated gold ore -- of three exploration licenses: Washihi, Mullaq and Al Ajal, which cover a total area of around 105 sq kilometres roughly a two-hour drive from Muscat. JORC resources in the Washihi licence alone are estimated at 14 million tonnes based on the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC), according to the company.
Citing the findings of a feasibility study that was completed recently, Al Hadeetha Resources said the copper-gold project is expected to yield healthy financial returns on base case assumptions. Revenues are projected at over $430 million over 10 years, with Earnings before interest, taxes, and amortization (EBITA) estimated at around $141 million over the same timeframe. Project IRR was envisaged at an impressive 21 per cent.
In parallel, the company is exploring a number of project financing options, including a rights issue. The findings of the feasibility study, it said, have sparked renewed interest in the project from certain interested parties.
Furthermore, in anticipation of the eventual commencement of operations, a concrete timeframe for which has yet to be disclosed, top officials of Al Hadeeetha hosted a community meeting and luncheon with stakeholders representing local communities in which the mining licenses are located. Also present were officials representing the Public Authority for Mining (PAM), Ministry of Environment and Climate Affairs, Ministry of Regional Municipalities and Water Resources, and offices of the local walis.
Besides updating the gathering on the findings of the feasibility study, project officials also outlined the latest milestones in the development of the venture, as well as fielded questions pertaining to potential impacts to the local communities once mining operations get underway.
Boding well for the success of the project is a number of initiatives and developments that promise to impart strong impetus to the growth of mining and mineral processing activities in north Oman.
Noteworthy are plans announced in March for the establishment of the Sohar Dry Bulk Logistics Corridor, designed to facilitate the export of mineral products to international markets at competitive rates.
Earlier, the State General Reserve Fund (SGRF), the largest sovereign wealth fund of the Sultanate, announced the creation of 'Mining Development Oman' (MDO) in partnership with three other state entities.
MDO, set up with a capital of RO 100 million, will invest in local mining projects in collaboration with local and international investors.
"The Company recognises the significance of these developments, among other positive steps being taken, as evidence of the Omani government's commitment to the development of the Sultanate's mining industry," it further added.
Muscat - An ambitious copper-gold mining project currently under development in Dakhiliyah Governorate has the potential to generate revenues in excess of $430 million over the first 10 years of operations, according to its joint Omani-Australian promoters.
The Al Hadeetha Copper-Gold Project is being developed by Al Hadeetha Resources LLC, a locally incorporated company that is 70 per cent owned by Alara Oman Operations Pty Ltd (a wholly owned subsidiary of Australian based international mineral exploration company Alara Resources) and Al Hadeetha Investments LLC of the Sultanate.
The venture aims to commercialise the potentially prodigious mineral potential -- copper deposits with associated gold ore -- of three exploration licenses: Washihi, Mullaq and Al Ajal, which cover a total area of around 105 sq kilometres roughly a two-hour drive from Muscat. JORC resources in the Washihi licence alone are estimated at 14 million tonnes based on the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC), according to the company.
Citing the findings of a feasibility study that was completed recently, Al Hadeetha Resources said the copper-gold project is expected to yield healthy financial returns on base case assumptions. Revenues are projected at over $430 million over 10 years, with Earnings before interest, taxes, and amortization (EBITA) estimated at around $141 million over the same timeframe. Project IRR was envisaged at an impressive 21 per cent.
In parallel, the company is exploring a number of project financing options, including a rights issue. The findings of the feasibility study, it said, have sparked renewed interest in the project from certain interested parties.
Furthermore, in anticipation of the eventual commencement of operations, a concrete timeframe for which has yet to be disclosed, top officials of Al Hadeeetha hosted a community meeting and luncheon with stakeholders representing local communities in which the mining licenses are located. Also present were officials representing the Public Authority for Mining (PAM), Ministry of Environment and Climate Affairs, Ministry of Regional Municipalities and Water Resources, and offices of the local walis.
Besides updating the gathering on the findings of the feasibility study, project officials also outlined the latest milestones in the development of the venture, as well as fielded questions pertaining to potential impacts to the local communities once mining operations get underway.
Boding well for the success of the project is a number of initiatives and developments that promise to impart strong impetus to the growth of mining and mineral processing activities in north Oman.
Noteworthy are plans announced in March for the establishment of the Sohar Dry Bulk Logistics Corridor, designed to facilitate the export of mineral products to international markets at competitive rates.
Earlier, the State General Reserve Fund (SGRF), the largest sovereign wealth fund of the Sultanate, announced the creation of 'Mining Development Oman' (MDO) in partnership with three other state entities.
MDO, set up with a capital of RO 100 million, will invest in local mining projects in collaboration with local and international investors.
"The Company recognises the significance of these developments, among other positive steps being taken, as evidence of the Omani government's commitment to the development of the Sultanate's mining industry," it further added.
© Oman Daily Observer 2016
