Oman to set up new state-owned firm to manage mineral resources and exports

28/05/2025 02:32 AST

Oman's Ministry of Energy and Minerals on Tuesday issued a decision to establish a national company named the Oman Minerals Trading Company (OMTC). The company aims to regulate the marketing and export of minerals within the sultanate and enhance the local added value of the country's natural resources.

This initiative forms part of a comprehensive reform of the mineral resource management system, aiming to integrate economic exploitation with environmental and social sustainability, according to a statement issued by the Ministry of Energy and Minerals.

The decision also includes provisions for the regulation of gypsum and chromite ore exports, prioritising the fulfilment of local market demand before allowing any overseas sales. Furthermore, it mandates that the concentration of exported chromite ore must not be less than 36%.

However, the export of processed chromite at any concentration will be permitted, subject to approval by the ministry. This move is intended to tighten control over marketing operations, enhance Oman's bargaining power in international markets, and promote greater transparency in the pricing of Omani mineral ores.

This development comes in response to structural challenges facing the minerals market -particularly the proliferation of intermediaries and the lack of specialised marketing mechanisms. These challenges have contributed to a decline in prices, despite increased production. Currently, there are 15 valid mining licences for gypsum ore, with production reaching approximately 14mn tonnes in 2024. Meanwhile, there are 29 valid licences for chromite ore, with output during the same period totalling around 300,000 tonnes.

These figures underscore the abundance of mineral resources in the sultanate and the necessity for a unified institutional management framework to ensure optimal utilisation and marketing, thereby contributing to increased national revenue.

Oman Minerals Trading Company, a subsidiary of the Oman Minerals Development Company, will be responsible for centrally managing exports, standardising contracts and specifications, and conducting negotiations with international buyers in accordance with professional standards. These measures are expected to increase the average price of exported raw materials and boost the nation's income.

The new regulations aim to reduce price manipulation, improve the efficiency of transportation and export operations, enhance market transparency, and enable the government to better monitor rents and returns. The decision is also expected to support local manufacturing and employment opportunities, particularly for small and medium-sized enterprises (SMEs) involved in supply chains. It will foster a business environment based on efficiency, integration, and long-term economic sustainability.

The ministry has granted a one-year transition period for companies to terminate existing contracts and adapt to the new marketing mechanism. It also plans to organise induction and training sessions for stakeholders, alongside the training of specialised personnel to manage sales and negotiation processes under the new framework.

Muscat Daily