Oman Reforms Mineral Exports

June 17, 2025 News:

It has been disclosed that Oman decided to implement reforms on May 27, 2025, to enhance the value of its mineral resources. Despite the increasing production of minerals in Oman, the value of its minerals has been severely underestimated due to the increase in mineral traders and the lack of professional sales strategies. As of now, Oman has 15 valid gypsum mining licenses, with production reaching approximately 14 million mt in 2024. It also has 29 chrome mining licenses, with production of around 300,000 mt.

The planned reforms are as follows:

(1) Establish a state-owned subsidiary based on the Oman Mineral Development Company (MDO), named the Oman Mineral Trading Company. The main role of this subsidiary is to centralize the management of exports, standardize contracts and specifications, and negotiate with buyers according to professional standards to increase the average export price of minerals and boost national revenue.

(2) Issue relevant regulations: For the export of gypsum and chrome ore, priority should be given to domestic market demand before considering export business. The exported chrome ore must have a minimum grade of 36%, while processed chrome can be exported at various grades, provided that government approval is obtained.

(3) Oman's current reforms provide a one-year transition period for existing mineral transactions to resolve existing contract issues. The Oman Mineral Trading Company will begin promoting the registration plan for buyers and sellers in the mineral export trading system in Q3 2025. This system includes registration procedures, procurement contracts, a global benchmark pricing mechanism, and logistics services. The system will be officially activated and used in May 2026.