National Company Established to
Regulate, Market Mineral Exports

Muscat, 27 May (ONA) — The
Ministry of Energy and Minerals has issued a decision to establish a national
company in the Sultanate of Oman, named the “Oman Minerals Trading
Company,” to regulate the marketing and export of minerals and enhance in-country
value (ICV) from natural resources.

This move is part of a comprehensive
reform path to restructure mineral management and achieve integration between
economic utilization, environmental sustainability, and social responsibility.

The decision also regulates the
export of gypsum and chrome ores, prioritizing domestic market needs before
considering export operations. Additionally, exported chrome ore must have a
minimum concentration of 36%, while processed chrome may be exported at all
concentrations subject to ministry approval. The decision aims to tighten
oversight of marketing operations, strengthen Oman’s negotiating position in
global markets, and enhance transparency in pricing Omani ores.

This move responds to structural
challenges in the mineral market, including the proliferation of intermediaries
and the lack of specialized marketing mechanisms, which have led to declining
prices despite rising production volumes. Currently, there are 15 active gypsum
mining licenses, with production reaching approximately 14 million tons in
2024, while 29 chrome mining licenses produced around 300,000 tons during the
same period. These figures reflect the abundance of mineral resources and the
need for a unified institutional framework to ensure optimal utilization and
marketing that maximizes national returns.

The “Oman Minerals Trading Company”—a
subsidiary of Minerals Development Oman (MDO)—will centrally manage exports,
standardize contracts and specifications, and negotiate with international
buyers under professional standards to raise average export prices and increase
national revenues.

The new regulatory framework is
expected to reduce price manipulation, improve logistics and export efficiency,
enhance market transparency, and enable better government oversight of
revenues. It will also boost local processing and employment opportunities,
support small and medium enterprises (SMEs) in supply chains, and foster a
business environment based on efficiency and integration.

This step aligns with the Ministry
of Energy and Minerals’ efforts to enhance ICV by requiring companies to adopt
clear plans for increasing local content, localizing supply chains, and
supporting downstream industries that add value to raw minerals before export.
It falls under the “Majd” initiative launched by the ministry to
consolidate and evaluate ICV efforts in the energy and minerals sector.

The ministry has granted a one-year
transitional period for companies to conclude existing contracts and adapt to
the new marketing mechanism. It also plans to organize awareness and training
sessions for stakeholders while developing specialized cadres to manage sales
and negotiations under the new framework.

Dr. Salah bin Hafeedh Al Dhahab,
Director General of Investments at the Ministry of Energy and Minerals, stated
that this decision marks a pivotal milestone in developing Oman’s mineral
sector, reflecting the ministry’s commitment to optimizing national resource
management through export chain restructuring and the establishment of a
dedicated national trading company.

He added that the decision addresses
past market challenges, including lack of coordination, multiple intermediaries,
and price fluctuations, which weakened the competitiveness of Omani products in
some markets despite high production volumes and ore quality. The company will
consolidate quantities, standardize specifications, and negotiate
professionally with global markets, enhancing the marketing value of Omani
products and delivering higher returns for both the government and investors.
Prioritizing domestic market access to ores before export is a strategic step
to support downstream industries and stabilize industrial supply chains within
Oman.

He noted that this decision is part
of the institutional transformation led by the Ministry of Energy and Minerals
since merging the energy and mining sectors. The ministry has developed
policies, improved investment frameworks, and implemented unified governance
systems, supported by national geological databases, ICV plans, and streamlined
investor licensing in a transparent regulatory environment—all aligned with “Oman
Vision 2040” goals to build a diversified, knowledge-driven economy based on
optimal natural resource utilization.

He expressed confidence that this
regulation will foster a more reliable investment environment, support national
enterprises, unlock viable industrial and commercial partnerships, enhance
employment, and uphold occupational health, safety, and environmental (HSE) standards—positioning
the mining sector as a vital contributor to the national economy.

Eng. Matar bin Salim Al Badi, CEO of
Minerals Development Oman (MDO), stated that this mandate represents a
strategic step to enhance supply chain efficiency, unify marketing efforts, and
ensure price transparency and fairness—aligning with Oman’s aspirations to
maximize economic returns from its natural resources.

He explained that the company is
developing an integrated system covering registration procedures, purchase
contracts, globally benchmarked pricing mechanisms, and logistics services to
ensure supply reliability and shipping flexibility. Prioritizing domestic
market access and ensuring private sector readiness for the new model are key
focuses.

He added that the company will
launch a supplier and buyer registration programme starting in Q3 of 2025,
ahead of the system’s official activation in May 2026. He emphasized early
engagement with market stakeholders and invited producers, investors, and trade
partners to explore collaboration opportunities under the new framework—whether
in exports or industrial partnerships for local processing and promising
investment prospects.

He affirmed that this approach
represents a qualitative leap toward enabling Oman to maximize the mining
sector’s potential and strengthen its competitive position in global markets.

— Ends/Khalid