Mining

Oman resumes copper exports as global demand rises

January 2, 2025, 4:22 PM

A copper wire factory in China's Jiangsu Province. While global demand for copper has risen, it has weakened in China, affecting prices

Dormant mines reopened
Reserves of 2.78m tonnes
High inventories hit prices

Minerals Development Oman (MDO) has resumed exporting copper from the Lasail mine in Sohar with its first shipment in nearly 30 years.

The mine, developed by Oman Mining Company, a subsidiary of MDO, produces an average of 500,000 tonnes of copper ore per year.

MDO said it also plans to initiate operations at the Al Baydha mine by 2026.

Both mines have a reserve of 2.78 million tonnes of copper ore, MDO said.

The company aims to carry out further exploration in surrounding areas to increase reserves and long-term production sustainability.

MDO CEO Mattar Al Badi said Oman has been a centre for copper mining for over 3,000 years.

“The sector has made remarkable strides in exploration and extraction, enabling us to reopen dormant mines and maximise their value,” he said.

Another MDO subsidiary, Mazoon Mining, broke ground on Oman’s largest integrated copper concentrate project in November. Spanning 20 square kilometres, the Mazoon Copper Project in Al Dhahirah has estimated reserves of 22.9 million tonnes of copper ore.

Copper is a key component in electric vehicles, advanced battery systems, renewable energy and data centres for artificial intelligence.

Demand has soared in recent years. Several abandoned mines around the world have been restarted in a bid to capitalise.

The price of copper peaked at $10,597 a tonne in May 2024, its highest in two years, but slipped to $8,652 by the end of December on the back of weaker demand in China.

In September, Goldman Sachs lowered its 2025 copper price forecast to $10,160 per tonne, down sharply from a previous estimate of $15,000 per tonne. In addition to China, it said global copper inventories have risen to their highest level in four years.