In a landmark development for Oman’s mining sector, Minerals Development Oman (MDO), has signed a pivotal mining concession agreement with the Ministry of Energy and Minerals (MEM).
This agreement empowers MDO to explore and develop strategic minerals within concession area 51F, located in the Al Wusta Governorate, covering 2156 km2 in the Wilayat of Mahout. The area holds high-value deposits of silica, limestone, and dolomite – critical minerals poised to drive industrial growth and economic diversification in Oman.
Silica is in increasing demand, driven by industries such as glass manufacturing, renewable energy technologies (e.g. solar panels), and energy storage. In 2021 the glass industry emerged as the largest consumer of silica sand in the region, a trend that shows no signs of slowing. According to a Syndicated Analytics Report for GCC Silica Sand Market, projections estimate a compound annual rate growth of 6.7% from 2022 to 2027, reaching US$513.5 million by 2027.
MDO’s new concession positions the company to become Oman’s first silica sand miner, advancing its strategy to diversify its mineral portfolio and tap into new growth opportunities. Silica sand, also known as industrial sand, is primarily composed of quartz and valued for its high silica content, strength, and non-reactive properties – qualities essential to industries like glass, solar technology, and chemicals. Preliminary studies indicate that the site holds significant reserves of silica ore, with purity levels reaching above 97% naturally. The signing of this agreement reflects the shared confidence of MDO and the Ministry of Energy and Minerals in the long-term viability and commercial potential of the concession area.
Nasser Al Maqbali, CEO of MDO, remarked:
“This agreement underscores MDO’s commitment to harnessing the nation’s mineral wealth to create investment opportunities, generate employment, and drive sustainable industrial development. Our exploration of silica resources reflects Oman’s untapped potential to support critical industries, especially those related to the energy transition.”
With this new agreement, MDO’s total concession area has expanded to 24 119 km2, reinforcing the company’s role as a key player in supporting Oman’s economic diversification and strengthening industrial capacity. The focus on silica aligns with Oman’s national objectives, particularly in advancing the energy transition and expanding the industrial base.