Oman has resumed exporting copper after a 30-year pause, a move seen as a significant step in its broader economic diversification strategy. This week, Minerals Development Oman (MDO) announced the first shipment of copper concentrates from the Lasail Mine in the Wilayat of Sohar. Once a dormant industry, copper mining is now part of the nation’s efforts to expand beyond its reliance on oil and gas revenues.

Copper mining in Oman initially came to a halt in 1994, but since MDO’s establishment in 2017, exploration for copper deposits has ramped up. The Lasail Mine, which produces around 500,000 tonnes of copper ore annually, delivers high-quality copper concentrates with purity levels between 18% and 22%, according to the company.

MDO’s chief executive, Mattar Al Badi, emphasized the significance of this milestone in a statement, saying it reflects Oman’s ability to turn challenges into growth opportunities. He also pointed to future operations at the Al Baydha mine, slated to begin in 2025-2026, which will further strengthen Oman’s mining sector. Together, the mines have an estimated copper ore reserve of 2.78 million tonnes.

Experts say that while mining currently contributes just 0.6% to Oman’s gross domestic product, the renewed focus on copper production could act as a natural hedge against oil dependency. Michael Widmer, head of metals research at Bank of America, told *The National* that the move aligns with Oman’s interest in increasing its exposure to metals and mining, particularly those tied to the global energy transition.

Copper’s importance is growing globally due to its role in clean energy and technologies like electric vehicles and advanced batteries. Demand for the metal is expected to double by 2035, reaching record highs by 2050, according to S&P. However, Widmer noted that Oman’s copper output remains small compared to global levels, with the worldwide copper market currently valued at $170 billion.

Market research firms project that the copper industry will grow significantly, driven by demand from Asia-Pacific regions, particularly China, where the metal is widely used in construction and electrical wiring. However, the sector also faces challenges, such as price volatility, which could impact producers and consumers.

The revival of copper exports comes amid broader economic trends in Oman. The International Monetary Fund recently reported that Oman’s economy grew 1.9% in the first half of 2024, compared to 1.2% in 2023. While growth is expected to slow slightly this year due to oil production curbs by Opec+, it is projected to rebound with an uptick in non-oil activities and hydrocarbon production.

The reopening of the Lasail Mine and Oman’s renewed focus on mining signal a promising step forward in diversifying the nation’s economy while contributing to global copper supplies.

Source: The National