Mazoon Mining Attracts $270 Million Investment for Major Copper Project in Oman

In a significant achievement for Oman's mining industry, Mazoon Mining, a subsidiary of Minerals Development Oman (MDO), has successfully secured $270 million in strategic financing aimed at developing the Sultanate's largest integrated copper concentrate project. This milestone represents a vital step toward the realization of an ambitious project which promises to greatly impact the local economy and the mining sector's growth.

The financing, which came from several leading local and regional banks, was oversubscribed by more than two times, indicating robust investor confidence in the project’s long-term viability. Notable financial institutions involved in securing the investment include Sohar Islamic Bank, National Bank of Oman, Qatar National Bank, Bank Nizwa, Ahli Bank, and Ahli Islamic Bank. This demonstrates the strategic importance of the project to Oman's overall economic landscape.

Project Overview

Located in the Wilayat of Yanqul in the Al Dhahirah Governorate, the project encompasses an area of 20 square kilometers and comprises confirmed reserves of approximately 22.9 million tonnes of copper ore. Once operational, the facility is expected to produce annual outputs of around 115,000 tonnes of copper concentrate, with a notable purity of 21.5 percent.

During the Rawabit Forum organized by the Oman Investment Authority (OIA), Mazoon Mining also signed critical contracts with various local contractors. These include ASYAD Group for transport and logistics support, the Oman National Engineering and Investment Company (ONEIC) for electrical installations, and STRABAG Oman for bulk earthworks. This package of contracts aims to strengthen local business engagement and support small and medium enterprises in the region.

Eng. Mattar bin Salim Al Badi, CEO of MDO, highlighted that obtaining such financing signifies the project's readiness to advance into the construction phase. He emphasized that the funds would cover nearly 60% of the total project cost, ensuring that the development timeline remains on track.

Preparation and Sustainability Efforts

Prior to this announcement, significant groundwork had been laid, including the appointment of Lycopodium, a Canadian firm, as the Engineering, Procurement, and Construction Management (EPCM) contractor. Furthermore, equipment supply agreements have been established with Metso, a recognized leader in mineral processing technology.

In light of the global increase in demand for copper—especially within the renewable energy and technology sectors—this project is positioned to transform Oman into a pivotal hub for minerals in the region. With a commitment to sustainable practices, the project aims to implement solutions such as a zero-liquid-discharge system and modern waste management strategies, addressing both environmental impacts and social responsibilities.

In addition to its environmental stewardship, the project is anticipated to create numerous job opportunities and foster the growth of local SMEs, aligning with Oman Vision 2040's goal for a diverse and resource-driven economy. Following the completion of these key phases, Mazoon Mining is poised not only to contribute economically but also to reinforce the Sultanate's reputation as an emerging player in the global copper market.

As the project progresses, stakeholders remain optimistic about its potential to drive growth in the mining sector and generate long-term benefits for the local community, thereby fortifying Oman's economic framework as a whole.