THIS
ORIGINAL POST WAS PUBLISHED August 03, 2011
MENA Mining (ix): Oman - 1
Oman is a country that is strategically located
outside the Persian Gulf, and has a very promising geologic structure. By
2020 the Sultanate of Oman stems to diversify its economy by means of
development of new industries, and among these plans substantial attention is
focused on mining. Development of industry would require a lot of materials
that are produced from extracted natural resources, thus the Government
encourages investments in mining.
This beautiful presentation: Sultanate of Oman by Gentor gives a short
historical and present day overview, while a special Gentor’s Website section provides technical
geologic data
Commission
for the Geological Maps of the Middle East provides detailed
description of the geology of Oman with this map:
Here I will look on some crucial points of
non-hydrocarbons mining industry. Surprisingly enough such a small country is
endowed with good mineral resources due to its exclusive geologic composition -
due to the presence of the world’s largest intact and best-exposed obducted Samail ophiolite. Metallic minerals are
represented with gold, chromite, copper, nickel, cobalt, vanadium, platinum,
palladium, lead, zinc and other precious metals (An interesting presentation
can be found here – although it discusses oil and gas, but gives a good
understanding of geology:Hydrocarbon Potential of Middle Eastern Basins
of the Gulf. Geology & Geopolitics mix!). However, the potential of
mining sector still remains unlocked and the biggest task now is to find out
and exploit what resources are the most feasible and can be exploited to their
full potential.
During the past 40 years mining industry in the Sultanate experienced
spectacular growth. As to the available data (as
of May 2010):
·
Production of
minerals and rocks, increased to RO 168.87 million in 2008 as against RO 95.86
million in 2007;
·
Number of
quarrying and mining operations going on in Oman stood at 150 for fill
material, 71 for chromite, 183 (crusher), 57 (marble), three (sandstone), four
(each for gypsum, laterite and clay), two (each for copper and limestone for
cement and limestone for export), and one (salt and dune sand)
·
Copper is
planned to be mined in Shinas, Liwa, Ghuzayn, Washihi, Al Ajal, Rakah and Hayl
As Safil deposits
·
Four companies
are conducting exploration for manganese.
·
Several
companies have received exploration licenses: five for laterite, four for
manganese, three for gyspum, two for dolomite, 12 for copper and one each for
silica sand/quartzite and limestone.
Chromite
At this time chrome ores seem to be one of the leading
investor attractions for non-hydrocarbons miners.
The world reserves of chromite ores are estimated to
be 1.52 billion MT. About 2% of these reserves (30 million MT) are located in
the Sultanate of Oman. Mining was active since early 1980s, but
metallurgical grade chromite ores started to be exported only in recent years
as response to rising demand from China and general shortages of ferrochrome
worldwide. The country has about 450 chrome deposits and
currently 71 mining operations are going on. As the result of low
production costs, all year operations due to good weather, and excellent
infrastructure present,chromite ores from Oman have the lowest production
cost as compared to ores from other countries. According to the
Ministry of National Economy, output of chromite ore surged from 407,822 MT in
2007 to 784,082 MT in 2008.
Chromite Ores are mainly located in the mountainous
region of Sohar, Somail and Sur. The quality of metallurgical grade chromite
ores from Somail is the highest in terms of Cr2O3 content. The grade from
Somail region is 32% - 42%. The most abundantly available grade is the 34%
Cr2O3 content. Higher grades - 45% Cr2O3 are
available in limited quantity.
One of the appealing to
investors features of Oman is the presence of abundant mid-grade chrome ore
deposits and availability of cheap energy – thus making the Sultanate an ideal
spot for location of ferrochrome smelters. This is further enhanced by
excellent transport and logistics infrastructure that provides access to the
world consumer markets.
Al Tamman
Trading Establishment LLC (a wholly owned
subsidiary of diversified Omani business house, Muscat Overseas Group) is the biggest producer and
exporter of Omani chrome ore, mined from two deposits at Samad A’Shan in Al
Mudhaibi wilayat, and at Wadi Rajmi off the Sohar-Shinas road. The
chrome ore is filled into shipping containers and exported out of Port Sultan
Qaboos, primarily to Chinese and Indian markets. This page describes the chromite
operations of the company. Records maintained by the Port Services Corporation
(PSC), which operates and manages the Muscat port, around 1,000 containers
filled with lumpy and concentrated chrome ore are shipped by Al Tamman out of
PSQ every month. The first ferrochrome smelter in the Sultanate is being
constructed in a joint venture between Al Tamman Trading Establishment and Indsil Hydro Power and Manganese Ltd at the plant at Sohar with
estimated commencement in July 2012. This will be a 75,000 MT per annum
capacity ferrochrome plant with estimated investment of $70 million. As part of
the ferrochrome smelter project, Al Tamman Trading Establishment is also planning
to develop a 100,000 MT capacity beneficiation plant for low grade chrome and
manganese ores.
Oman Chromite
Company SAOG (founded in 1991; based in Sohar) engages in
mining chromite deposits - drilling, blasting, excavating, and transporting
chromite ore from the mountains near Sohar. The Company produces different
types of chrome ore, including metallurgical grade ore and refractory grade ore
in different sizes (up to 25 millimeters) and specifications.
Gulf Mining
Group has played a major role in establishing Omani chrome ore in the world
market. Starting off on a modest scale in 2006, it is now one of the key
producer and exporter. The Group offers chrome ore in lumpy and fines form with
chrome content ranging 24% - 42%. Oman’s first chrome ore beneficiation plant
is managed by the Group at Wadi Mahram in Wilayat Samayil; intake capacity of
15,000 MT per month.
Hatton FZE operates one of the largest chromite quarry in
Somail area, south of Muscat, Oman. The chromite ores are of various grades and
ranges from 30% to 42%. The production capacity is 2,000 MT per day or 40,000
MT per month or 480,000 MT per year. Since Oman is a desert and almost never
rains, production can continue year round.
No comments:
Post a Comment