Oman Unveils New Mining Concessions to Bolster Critical Minerals Strategy

Oman has announced the designation of three new mining concession areas as part of a strategic initiative to enhance investment in the exploration, mining, and development of critical minerals projects. The Ministry of Energy and Minerals of Oman revealed at a conference held in Australia on Tuesday that these new concession areas collectively span 2,062 square kilometers. The allocated areas will encompass investment opportunities across various stages, from initial exploration to ore processing.

A mining concession area is defined as a segment of public land granted by a government or relevant agency for the purpose of mineral extraction. Oman's mountainous regions are notably rich in ophiolite, which is an exposed portion of the Earth's oceanic crust and may contain valuable metals such as chromite, copper, and nickel. The three concession areas, announced on Monday, range in size from 627 to 830 square kilometers and are believed to hold deposits of manganese, nickel, laterite ores, copper, chromite, gold, marble, and basalt.

The mining sector is identified as one of the four primary pillars supporting Oman Vision 2040, the sultanate's comprehensive economic diversification program. This vision aims to significantly increase the sector's contribution to Oman's GDP, targeting a rise from 1.4% in 2020 to 10% by 2040. This initiative aligns with similar endeavors by the United Arab Emirates (UAE) and Saudi Arabia, underscoring the growing importance of critical minerals in the Gulf region's economic diversification strategies, driven by escalating global demand for materials essential for advanced technologies, clean energy, and defense systems.

Oman's approach to mineral investment distinguishes itself from that of the UAE and Saudi Arabia. While the UAE has primarily directed its investments towards Africa and other international locations due to its limited domestic reserves, Oman's mineral strategy has largely concentrated on domestic investment projects. However, the scale of these announcements has been more modest compared to those launched by Saudi Arabia, a difference attributed to the geological characteristics of the respective regions.

In 2025, Oman's Ministry of Energy and Minerals announced three agreements for mineral exploration, collectively valued at $500 million, focusing on copper, chromium, and other industrial metals. In 2023, the ministry entered into an agreement with the UK-based mining company Knights Bay for nickel extraction, marking Oman's first mining agreement with a foreign investor. During the same year, Oman invited companies to submit bids for seven mining concessions covering a variety of minerals, including gypsum. Oman was the third-largest exporter of gypsum in 2024, generating $217 million, trailing only Spain ($227 million) and Thailand ($219 million), according to data from the Observatory of Economic Complexity. Furthermore, Oman was the first in the region to produce and export ferrochrome, an alloy of iron and chromium crucial for producing stainless steel and other applications, contributing significantly to the global chrome supply.