Oman is poised to significantly strengthen its position in the global minerals market with the ambitious South Minerals Project. This landmark initiative, recently bolstered by a strategic partnership with India’s JSW Group, represents a substantial investment in the country’s industrial minerals sector and a key step towards realizing the goals of Oman Vision 2040. The project focuses on developing an integrated value chain for gypsum and limestone, alongside crucial infrastructure upgrades to enhance export capabilities.
A Major Investment in Oman’s Mineral Wealth
Minerals Development Oman (MDO) has announced a OMR204 million (approximately $530 million USD) investment in the South Minerals Project, signaling a firm commitment to unlocking the potential of Oman’s natural resources. This isn’t simply about extracting minerals; it’s about building a comprehensive ecosystem that supports sustainable growth and diversification. The partnership with JSW Group, a leading infrastructure conglomerate, brings vital expertise and capital to the table, ensuring the project’s success.
This collaboration highlights Oman’s proactive approach to attracting foreign direct investment and fostering public-private partnerships within the mining sector. The project’s scale and scope are designed to transform the region into a competitive hub for industrial minerals.
The Scope of the South Minerals Project
The South Minerals Project encompasses a vast area of 1,500 square kilometers across three concession areas. Extensive exploration conducted by MDO has confirmed significant deposits of both gypsum and limestone, the project’s primary focus.
Quarrying and Production Capacity
The planned quarries will boast an impressive annual production capacity of 30 million tonnes of gypsum and limestone. This substantial output is intended to dramatically increase Oman’s exports of these crucial industrial minerals, bolstering the nation’s industrial base and generating significant revenue. The increased production will cater to both regional and international demand, positioning Oman as a reliable supplier.
A’Shuwaymiyyah Deep-Water Minerals Berth
A critical component of the project is the construction of a state-of-the-art deep-water minerals berth in A’Shuwaymiyyah, located in the Wilayat of Shaleem and the Hallaniyat Islands. This berth will have an annual handling capacity of 27 million tonnes, significantly enhancing Oman’s logistical capabilities.
This infrastructure upgrade is vital for streamlining supply chains and making Omani exports more competitive on the global stage. It directly addresses bottlenecks in the existing port network and facilitates larger-scale shipments. The development of port infrastructure is a key element in Oman’s broader logistics strategy.
Aligning with Oman Vision 2040
The South Minerals Project is intrinsically linked to the objectives of Oman Vision 2040, the Sultanate’s long-term development plan. The vision prioritizes economic diversification, sustainable growth, and the development of non-oil sectors.
This project directly contributes to these goals by:
- Diversifying the Economy: Reducing reliance on oil and gas revenues by developing a thriving industrial minerals sector.
- Creating Employment Opportunities: Generating jobs in quarrying, processing, logistics, and supporting industries, particularly within the Dhofar Governorate.
- Stimulating Regional Growth: Opening new logistical and industrial routes, enhancing the competitiveness of the Dhofar region and attracting further investment.
- Enhancing Value-Added Industries: Providing a stable supply of raw materials to support the development of downstream industries, such as cement and plasterboard manufacturing.
Key Stakeholder Perspectives
The leadership behind the project has expressed strong enthusiasm for its potential. Abdulsalam bin Mohammed Al Murshidi, CEO of Oman Investment Authority, emphasized that the South Minerals Project exemplifies Oman’s investment-driven strategy, designed to accelerate growth across the mining value chain. He highlighted the importance of attracting foreign capital and enhancing the key industry.
Eng. Mattar Salim Al Badi, CEO of Minerals Development Oman, described the project as a “pivotal step” in developing the mining industry and enhancing national logistics. He underscored its role in generating economic value and fostering the competitiveness of Omani exports.
Rinkesh Roy, CEO of JSW Infrastructure, expressed his company’s pleasure in partnering with MDO, citing Oman’s stable regulatory framework and robust investor support as key factors in the project’s potential for long-term success. He also noted JSW’s commitment to building world-class maritime infrastructure.
The Future of Oman’s Minerals Sector
The South Minerals Project represents a significant turning point for Oman’s minerals sector. By combining substantial mineral reserves with advanced infrastructure and strategic partnerships, the Sultanate is laying the foundation for long-term prosperity. The project’s success will not only boost Oman’s economy but also serve as a model for future investments in the country’s natural resources.
The development of this integrated value chain, from quarrying to export, will position Oman as a key player in the global industrial minerals trade. Furthermore, the project’s focus on sustainability and local employment will ensure that its benefits are shared widely throughout the region. Looking ahead, continued investment in exploration, infrastructure, and strategic partnerships will be crucial for unlocking the full potential of Oman’s mineral wealth and achieving the ambitious goals of Oman Vision 2040.
