Oman Prepares for First Copper-Gold Concentrate Export from Al Sharqiyah North
Marking a significant milestone in Oman's efforts to commercialize its promising mineral resources, a maiden shipment of copper-gold concentrate from a newly commissioned mining project in Al Sharqiyah North Governorate is being prepped for export from Sohar Port and Free Zone next week.
Al Hadeetha Resources LLC, an Omani-Australian joint venture, announced on Tuesday that the first consignment of concentrates from its Al Wash-hi Majaza mine in the Wilayat of Al Mudhaibi is scheduled to set sail on May 27, 2024. This milestone represents the culmination of years of exploration, appraisal, and development efforts by the joint venture since its Australian partner, Alara Resources (51 percent), became the first international mining company to secure a mining license from the Omani government in June 2018 under the country's modernized mining laws.
The inaugural shipment comes amid a strong uptrend in international copper prices, driven by investor concerns that the ongoing global energy transition may cause significant shortages of this strategically important metal. Earlier this week, copper futures on the London Metal Exchange surged 4.1 percent to reach $11,104 per tonne, surpassing a previous record set in March 2022.
Global commodities group Trafigura is the offtaker of copper concentrate from the Al Wash-hi Majaza project under an agreement with Al Hadeetha Resources, committing all output for a period of eight years from the start of production. Pricing is based on the official London Metal Exchange cash settlement quotation for Grade A copper at the time of delivery.
Muscat-headquartered Al Hadeetha also revealed that technical problems associated with a 'tailing filter press' within its newly commissioned 1 million tonne per annum capacity copper concentrator plant are being addressed by a team of engineers. The glitch has been hampering the optimal performance of the plant.
In a further boost to its growth strategy in Oman, Alara Resources announced that its Omani joint venture company Awtaq Copper LLC has been granted a renewal of its exploration license for Block 8 in the Samail Ophiolite. Copper and gold mineralization is thought to occur in the volcanic rock units of the ophiolite, according to Alara. More than 150 volcanic massive sulphide (VMS) prospects have been discovered along the 500 km length of the Samail Ophiolite.
Alara Managing Director Atmavireshwar Sthapak stated, "With the grant of a mining concession over Block 22B and the renewal of this license, Alara and partners now have the right to explore more than 1900 km² of ground in Oman. These are exciting times for the global copper mining sector, which is urgently seeking new deposits around the world."
Alara, which has recently begun producing copper concentrate in Oman, is eager to collaborate with its joint venture partners to explore Oman's promising geology in the hope of making additional copper-gold discoveries.
