Omani-Australian JV Prepares for Copper Production in Oman

Project Milestone and Operations Readiness

Al Hadeetha Resources, an Omani-Australian joint venture, is set to initiate copper concentrate production from its project in Al Sharqiyah North Governorate, Oman. Al Hadeetha, 51% owned by Australian mining exploration company Alara Resources, is poised to start operations following over five years of development since receiving a mining license under Oman's modernized mining law in 2018.

Avigyan Bera, CEO of Al Hadeetha Resources, confirmed the readiness of a 1 million tonnes per annum capacity copper concentrator plant at the site. The plant is currently in the early stages of commissioning, with operations expected to commence before the end of the year. This development marks a significant step in generating revenue from the project.

Copper Ore Mining and Stockpiling

The company has already begun mining copper ore at the site, having removed considerable overburden to access the ore. By the year's end, around 300,000 tonnes of copper ore are estimated to be stockpiled for processing into copper concentrate.

Market Outlook and Long-term Prospects

Atmavireshwar Sthapak, Managing Director of Alara Resources, anticipates a rise in global copper prices, which will benefit the project. Despite current prices being lower than historic highs, forecasts suggest new records from 2025 due to the growing momentum towards renewable energy. Alara Resources has secured the sale of all production from the project for the first eight years, with pricing based on the market at the time of delivery.

Global commodities giant Trafigura has entered a long-term agreement to offtake copper concentrate from the project. This venture is Alara's flagship among five mining investments in Oman and is expected to facilitate the progression of the company's other mining ventures.

Expansion and Growth Strategy

Following the stabilization of copper production at the Al Wash-hi - Majaza Mine, Alara plans to focus on expanding its mineral properties portfolio. The company is considering acquiring advanced-stage exploration assets, and cash flow from copper sales will bolster the search for their next potential mine. Alara aims to evolve into a mid-tier base metals production company in the Middle East.