By: Mining technology

Oman is revitalizing its mining sector as a central pillar of its long-term economic diversification strategy, Vision 2040. This plan builds on earlier efforts to reduce the Sultanate's reliance on hydrocarbons, with copper production identified as a strategic priority.

A key milestone was reached in 2025 when state-owned Minerals Development Oman (MDO) exported copper concentrate from the reopened Lasail Mine, resuming copper mining after a 30-year hiatus. Production is also planned for the Al-Baydha mine by the end of 2026, with the larger Mazoon project expected to begin in 2027. Analysis suggests these projects could position Oman as the 33rd largest global copper producer by 2030, up from its current rank of 48th.

A Shift in Strategy

This new approach marks a significant departure from Oman's previous mining model in the 1980s and 90s, which focused on domestic smelting. That effort stalled due to low ore grades, high costs, and weak global prices. The current strategy prioritizes exporting copper concentrate, which is less capital and energy-intensive, allowing Oman to tap into global demand more efficiently.

According to Christopher Armitage, a Middle East energy and resources expert with Deloitte, Oman is not aiming to compete with mining giants like Chile but to position itself as a reliable, mid-tier supplier. The country leverages its geographic proximity to key markets in Asia and Europe, offering a diversified and secure copper source.

Infrastructure and Sustainability

The strategy is supported by infrastructure upgrades, including enhanced bulk-handling facilities at Sohar Port. Oman is also incorporating sustainability initiatives, such as a new mining waste recycling facility that will use renewable power to produce copper cathodes from tailings.

Challenges to Overcome

Despite the progress, challenges remain. Streamlining licensing, land access, and inter-agency coordination is critical for attracting foreign investment. A major question is exploration; known copper reserves in the Al-Batinah region are relatively small and may only support operations for 10-20 years. Attracting foreign exploration companies with modern technology is essential for discovering new deposits and ensuring the sector's long-term future.

For Oman, restarting copper mining is a calculated step towards creating jobs, attracting foreign investment, and embedding itself in global supply chains, ultimately building a more diversified economy.