Overview
Mining is an emerging diversification sector for Oman, while Chile is one of the world’s leading mining nations. Comparing the two illuminates the potential and challenges of developing mining as a significant economic contributor in Oman.
Oman’s Mining Sector
Oman’s mining sector contributes approximately 1 percent of GDP, with production of limestone, marble, gypsum, chromite, and copper. The Al Jabal Al Akhdar and Hajar Mountains contain significant mineral deposits. Vision 2040 targets mining as a priority sector, with plans to attract investment in copper, chromite, and potentially lithium and rare earth elements. The mining regulatory framework has been modernised, and geological surveys are mapping resource potential.
Chile’s Mining Sector
Chile’s mining sector contributes approximately 15 percent of GDP, with copper alone accounting for over 50 percent of export revenues. Chile produces roughly 27 percent of global copper output. The sector benefits from a mature regulatory framework, extensive geological data, a skilled mining workforce, and decades of international investment. Chile’s mining industry has developed strong environmental and community engagement standards. Codelco, the state mining company, is the world’s largest copper producer.
Key Differences
Chile’s mining sector is vastly larger and more developed, built over a century of industrial mining. Oman’s mineral endowment, while significant, is less explored and characterised. Chile has a deep talent pool in mining engineering and geoscience that Oman lacks. Chile’s regulatory framework is among the world’s most investor-friendly for mining, while Oman’s is still developing. Water scarcity is a shared challenge for both countries’ mining operations.
Verdict / Bottom Line
Oman’s mining sector has genuine potential but requires sustained investment in geological surveys, regulatory development, workforce training, and infrastructure. Chile’s experience shows that mining can become a major economic pillar for a mid-sized country, but success takes decades. Oman should focus on building the knowledge base and regulatory environment first, then attract tier-one mining investors through competitive terms and transparent processes.