Minerals Development Oman Enters Silica Exploration Pact

Minerals Development Oman (MDO) has entered into a pivotal mining concession agreement with the Ministry of Energy and Minerals (MEM) to explore and develop strategic minerals in concession area 51F, spanning 2,156 square kilometers in the Wilayat of Mahout, according to the several media reports. This area is rich in valuable deposits of silica, limestone, and dolomite, which are anticipated to play a crucial role in driving industrial growth and economic diversification in Oman.

The demand for silica is on the rise, particularly in sectors such as glass manufacturing, renewable energy technologies like solar panels, and energy storage solutions. Notably, in 2021, the glass industry became the largest consumer of silica sand in the region, and this trend is expected to continue.

MDO’s new concession positions the company to become Oman’s first silica sand miner, reinforcing its strategy to diversify its mineral portfolio and explore new growth avenues. Silica sand, also referred to as industrial sand, consists mainly of quartz and is highly valued for its strength, high silica content, and non-reactive properties, making it essential for industries such as glass, solar technology, and chemicals. Preliminary studies suggest that the site contains substantial silica ore reserves, with purity levels exceeding 97% naturally. The agreement reflects the mutual confidence of both MDO and MEM in the long-term viability and commercial potential of the concession area.

Nasser Al Maqbali, CEO of MDO, emphasized that this agreement demonstrates the company's dedication to leveraging the nation's mineral resources to create investment opportunities, generate jobs, and promote sustainable industrial development. He noted that exploring silica resources showcases Oman’s untapped potential to support critical industries, particularly those linked to the energy transition.

With the signing of this agreement, MDO’s total concession area now encompasses 24,119 square kilometers, further solidifying its role as a significant player in bolstering Oman’s economic diversification and enhancing industrial capacity. The focus on silica aligns with national goals, especially regarding energy transition and industrial expansion.

Beyond its role as an asset owner, MDO aims to act as a catalyst for regional mining sector development, generating value for investors while ensuring direct benefits for local communities through job creation and economic empowerment. Throughout 2024, MDO has pursued several strategic exploration projects targeting key minerals such as copper, chromite, gypsum, and dolomite. Earlier this year, the company celebrated the groundbreaking of the Lasil and Al Baydha Copper Mines Redevelopment Project in Sohar, Liwa, with plans to produce 800,000 tonnes of copper ore annually.

Looking ahead, MDO is set to announce the start of construction on the Yanqul Copper Project, managed by its subsidiary Mazoon Mining. This project, which has been granted exclusive rights for exploration and development, aims to contribute significantly to Oman’s copper production and economic diversification.

Al Maqbali reiterated MDO’s commitment to responsible mining and community engagement, emphasizing the company’s focus on developing local skills, partnering with local suppliers, and adhering to Omanisation targets to enhance local employment and support community development.