BUSINESS REPORTER
MUSCAT, Sept 28
Minerals Development Oman (MDO), a subsidiary of Oman Investment Authority (OIA), has announced the start of commercial operations of a major gabbro quarry in Wilayat of Liwa with a production capacity of 2.4 million tonnes of gabbro per annum.
A geological and economic feasibility study conducted by MDO that revealed a recoverable amount of about 211 million tonnes of gabbro in a mine life of about 50 years, covering an area of 2.2 square kilometres.
Based on the feasibility study, Ahjaar Mining Company was established in 2019 to operate the project in partnership with local Omani firms Assarain Group and Al Fajar Al Alamia Company. Offtake agreements were also signed for 2.4 million tonnes of gabbro. The company has ambitious plans to increase the production to reach 5 million tonnes in the next phase.
Significantly, this is the first mining licence obtained by MDO in January 2019. Gabbro is witnessing an increased demand by a number of Gulf and regional markets, due to its rapid importance to the construction sector.
MDO was established with a strategic vision to invest in the mining sector in the Sultanate, and to increase its contribution to the growth of the economic and social sectors by creating job opportunities and building local capacities and competencies, in addition to supporting small businesses and developing the local added value.
