Oman’s growing solar photovoltaic (PV) manufacturing sector is set to receive a major boost following the signing of a mining concession agreement on October 9, 2024. This agreement aims to unlock substantial deposits of high-purity silica ore, a critical raw material for solar panel production, among other valuable commodities. The concession, designated as Area 51-F, is located in the Al Wusta Governorate and was awarded by the Ministry of Energy and Minerals to Minerals Development Oman (MDO), the country’s premier mining industry leader. This latest concession is part of a series granted to MDO, reinforcing its leadership in commercializing Oman’s mineral resources.

According to MDO, the 2,156 km² concession is believed to hold silica ore with an impressive purity level of up to 97 percent. Once fully assessed, these resources will be extracted to produce high-quality silica that meets the stringent standards required for key silica-based manufacturing industries. Nasser Saif al Maqbali, CEO of MDO, highlighted the strategic importance of the agreement. He noted, "This marks a vital step in expanding our portfolio of strategic mineral resources. Our aim is to position the Sultanate as a key player in the regional mining sector by producing soft silica for industries such as glass and solar panels. Through this project, we also seek to attract investments that align with Oman’s vision for clean energy solutions."

MDO has been conducting extensive exploration programs across its portfolio, identifying silica ore resources of around 210 million tonnes. In the Wilayat of Mahout, located in the Al Wusta Governorate, the company confirmed the presence of over 40 million tonnes of high-quality silica ore. To capitalize on these resources, MDO established Al Wusta Mining Company, in which it holds a 75 percent share. This entity will carry out an economic feasibility study aimed at producing high-quality silica ore for local glass manufacturing. Additionally, significant quantities of silica ore have been discovered in the Wilayat of Qurayyat in Muscat Governorate.

MDO’s efforts to align its mining strategies with Oman’s energy transition goals are evident in its push to harness raw materials that support the growth of clean energy solutions. Earlier in 2024, Homerun Resources Inc., a Canadian energy materials specialist, signed a non-binding Memorandum of Understanding (MOU) with MDO. This MOU outlines plans to explore the feasibility of establishing a solar glass manufacturing project in Oman. The collaboration will focus on enhancing the quality of quartzite deposits in MDO’s Qurayyat concessions. Refined quartzite silica sand is crucial for producing solar glass, a key component of silicon wafers used in solar cells.