Oman creates new company to regulate mineral exports

Oman has established a new company to regulate mineral exports and to unify price negotiations and standardise contracts with global buyers.

Oman Minerals Trading Company, a subsidiary of the state-run Minerals Development Oman (MDO), aims to overcome challenges in the mineral market, the state-run Oman News Agency reported.

These challenges, the report said, include the proliferation of intermediaries and the lack of specialised marketing mechanisms that have led to declining prices despite rising production volumes.

The company will centrally manage exports, standardise contracts and specifications, and negotiate with international buyers to raise average export prices, thus increasing national revenues.

The new regulatory framework is expected to reduce price manipulation, improve logistics and exports, improve market transparency, and support government’s oversight of revenues.

The new company is part of the “Majd” initiative launched by the energy and minerals ministry to promote the domestic market.

The ministry has granted a one-year transitional period for companies to conclude existing contracts and adapt to the new marketing mechanism.  

Matar bin Salim Al Badi, CEO of MDO, said the new company will launch a supplier and buyer registration programme in the third quarter of 2025, ahead of its official activation in May 2026.

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There are 15 active gypsum mining licenses in Oman, which produced 14 million tonnes in 2024. Additionally, 29 chrome mining licenses produced 300,000 tonnes last year.  

In March MDO said it was moving ahead with mining projects to exploit the sultanate’s reserves of titanium, copper, chromite and dolomite.

Last week a subsidiary of MDO secured $270 million in loans from six banks, including Qatar National Bank, to finance operations.

Mazoon Mining Company will use the funds to mine for copper at Yanqul, about 300 km northwest of the capital, Muscat. The site has proven reserves of about 23 million tonnes of copper ore.