Overview
Oman possesses significant mineral resources that remain substantially underexploited relative to the country’s geological potential. The Sultanate’s diverse geology — spanning the ophiolite sequences of the Hajar Mountains, the limestone formations of the interior, and the mineral-rich formations of the southern Dhofar region — supports deposits of chromite, copper, gold, manganese, gypsum, limestone, marble, dolomite, and industrial minerals. Vision 2040 identifies mining and minerals as a priority diversification sector, targeting a substantial increase in the mining sector’s contribution to GDP by 2040. The sector is regulated by the Public Authority for Mining (PAM), established in 2014 to streamline licensing and promote investment.
Key Facts
The Public Authority for Mining issues exploration and mining licences under the Mining Law (Royal Decree 38/2014). Exploration licences are valid for three years with renewal options. Mining licences are granted for up to 30 years. Foreign investors may hold 100 percent ownership of mining operations under the Foreign Capital Investment Law. Oman produces approximately 2-3 million tonnes of chromite ore annually, ranking among the top 15 global producers. Copper deposits at the Ministry of Mining-identified sites in the Hajar Mountains have attracted international exploration interest. Gypsum, limestone, and marble production supports a domestic construction materials industry with export potential.
Regulatory Framework
The Public Authority for Mining operates a digital licensing portal for exploration and mining applications. Environmental impact assessments are mandatory prior to mining licence approval, administered through coordination between PAM and the Environment Authority. Mining operations must comply with Omanisation quotas, though these are set at lower levels for the mining sector given specialised skill requirements. Royalty payments apply to extracted minerals at rates set by PAM, varying by mineral type. Export of certain minerals may require export permits. Water usage for mining operations is regulated given Oman’s water scarcity constraints.
Opportunities
Chromite and copper represent the near-term investment opportunities with established production infrastructure and proven reserves. Value-added processing of construction materials (marble cutting, gypsum board manufacturing) serves both domestic demand and export markets. Exploration for gold and base metals in the Hajar Mountain ophiolite belt remains at an early stage with significant discovery potential. Industrial mineral extraction (silica sand, quartz, dolomite) supports the glass, ceramics, and chemical industries. The Duqm SEZ provides downstream processing infrastructure for mineral beneficiation operations.
Considerations
Mining operations in Oman’s interior and mountain regions require significant infrastructure investment in access roads, power supply, and water sourcing. The environmental regulatory framework, while improving, introduces permitting timelines that investors should factor into project planning. Labour availability for remote mining operations requires workforce solutions including camps and rotation schedules. Commodity price exposure is inherent — investors should model downside scenarios given Oman’s relatively higher production costs compared to established mining jurisdictions. Engagement with local communities in mining areas is essential for social licence to operate.