Mazoon Mining inks contracts for Yanqul Copper Project

14/05/2025 05:28 AST

Mazoon Mining Company, a subsidiary of Minerals Development Oman (MDO), on Tuesday signed construction and service package agreements with local contractors for the Yanqul Copper Concentrate Production Project in Al Dhahirah Governorate. The project's foundation stone was laid last November.

The agreements were signed during the Rawabet Forum, organised by the Oman Investment Authority for its subsidiaries.

The construction and service packages, awarded to several companies specialising in project implementation, include: a transportation and logistics services contract with Asyad Group, the national logistics arm; a contract for the development of the electricity grid and transformer station with Oman National Engineering and Investment Company (ONEIC); and a contract for initial site preparation works with Strabag Oman.

Mazoon Mining Company also announced that it has successfully secured RO104mn in financing from a number of local and regional banks. This was achieved through a strategic partnership with several major banking institutions, including Sohar Islamic, National Bank of Oman, Qatar National Bank, Bank Nizwa, ahlibank, and Ahli Bank Islamic.

The offering attracted strong interest from financial institutions and was more than twice oversubscribed, reflecting the project's position as one of the most attractive investment opportunities in Oman's mining sector.

In a statement to Oman News Agency, Eng Matar bin Salem al Badi, CEO of Minerals Development Oman, said that securing the financing is a strategic milestone, confirming the project's readiness to move into the implementation phase.

He noted that the financing covers approximately 60% of the total project value and that the signing of the construction and service packages marks a critical step towards keeping the project on schedule.

He added that the project has undergone several preparatory phases, including the assignment of engineering, procurement, and supervision responsibilities to the Canadian firm Lycopodium. In addition, contracts have been signed for the supply of the main equipment for the copper concentrate plant with Metso, a global leader in processing and concentration technologies.

Environmental sustainability is a key focus of the Yanqul Copper Production Project, which will implement a zero-water discharge system and advanced waste management solutions. It is also expected to deliver significant social and economic benefits, including job creation, support for small and medium-sized enterprises, and stimulation of the local economy.

The project spans an area of 20 sqkm and aims to produce approximately 115,000 tonnes of copper concentrate annually, with a purity of up to 21.5%, based on proven reserves of approximately 22.9mn tonnes of copper ore.

Muscat Daily