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MEGA DEVELOPMENT: International partners lined up to participate in Oman's largest mining venture -
Gulf Mining Group, one of the largest mining and mineral processing corporations in the Sultanate, has plans to set up a major potash mining project targeting prolific reserves in central Oman.
According to the Group's Chief Executive Officer, Mohammed Yahya al Shabibi , initial investments in the project are estimated at between $300 -- 500 million, effectively making it the single largest mining related venture in the Sultanate.
"We have joined hands with international investors -- whose identities I cannot reveal at this stage -- as strategic partners in the development of potash mines in central Oman," Al Shabibi said. "Omani wealth funds have also indicated interest in participating, while local banks are planning a syndication to support the financing," the CEO added in exclusive comments to the Observer.
The initiative comes against a backdrop of heightened efforts by the Omani government to accelerate the development of the nation's prodigious mineral resources in support of its economic diversification goals. Mining has been identified as one of five strategic non-oil sectors, alongside manufacturing, tourism, fishing and logistics, that have been targeted for aggressive development towards this end.
Potash is a primary raw material used in the manufacture of fertiliser for the global agriculture industry. Its high nutrient concentration and relatively competitive price makes it a highly sought after global commodity.
Underscoring the strategic significance of this commodity, the State General Reserve Fund (SGRF), the Sultanate's sovereign wealth fund, recently inked a deal with Australian-based mineral exploration company Elemental Minerals Ltd to participate as a strategic investor in the development of a major potash project in the Republic of Congo.
Significantly, exploratory work centring on potash deposits in central Oman has already commenced, according to Al Shabibi. "Our initial studies have shown that the deposits are commercially viable for development. At the moment, we are trying to pinpoint the exact locations where potash concentrations are ideal. This is also necessary because we do not want to come in the way of oilfield activities in this area," the CEO noted.
The planned investment represents a major step-up in Gulf Mining Group's business portfolio, which includes investments and activities across mining, mineral processing, minerals trading, shipping and hospitality.
Various group companies, notably its flagship Gulf Mining Materials Company, are currently engaged in the development of industrial minerals, such as chrome ore, manganese, limestone, marble, laterite and iron ore.
The Group also has a stake in Oman's first ferrochrome smelter currently in operation at Sohar Port and Free Zone.
Output from almost all of these operations are targeted for significant upsizing in line with the company's ambitious strategy to expand its presence nationally and internationally, said Al Shabibi. "Gulf Mining Group continues to play a major role in supporting the government's vision for the mining sector in driving non-oil economic growth," he explained.
"We appreciate the support extended by the government, represented by the Public Authority for Mining (PAM) and its CEO, Hilal bin Mohammed al Busaidi, in facilitating our growth objectives. The support of other government bodies, including the Ministry of Environment and Climate Affairs, Ministry of Housing, and so on, is commendable as well."
"We could however do with more support, especially in the development of the infrastructure necessary to help us add value to Oman's natural resources through downstream processing," Al Shabibi added.
© Oman Daily Observer 2016
