Oman's PMA considering renewing or cancelling dormant chromite mining licenses
2020-09-01 09:18:56 [Print]
The Public Authority for Mining (PAM) is weighing a decision to either renew or cancel dozens of chromite mining licenses that have remained "inactive" for inordinately long periods of time without being developed or exploited by their licensees.
The move comes amid a growing crunch being faced by, among others, ferrochrome smelters operating at Sohar Freezone that require high-quality grades of Omani chromite ore as feedstock for their operations. With much of the country's current output of chromite ore currently being exported under existing supply commitments, the government has been compelled to consider more strident measures to ensure adequate supplies of locally sourced chromite ore to the nation's fledgling, but promising, ferrochrome smelting industry.
One such measure being contemplated by the Public Authority for Mining (PAM) is the revocation of chromite mining licenses that have not been acted upon for five years and more. The initiative has the backing of the Implementation Support & Follow-up Unit (ISFU) – a task force operating under the auspices of the Diwan of Royal Court to fast-track approvals of projects deemed imperative to fuelling Oman's economic diversification.
A team comprising officials of the Public Authority for Mining and ISFU reviewed as many as 50 chromite mining licenses that were dormant for extended periods of time. Of this number, 38 licenses that were issued prior to 2015 were cancelled following due process. Barring two other licenses which are the subject of ongoing litigation, the others -- particularly those issued during 2015 and later -- were submitted for the consideration of the licensing committee of PAM for renewal.
An estimated 670,000 tons of chromite ore valued at around RO 19.6 million were produced at various sites across north Oman during 2019. This compares with an output of 836,000 tons of ore, worth over RO 30 million, produced in 2018.
The move comes amid a growing crunch being faced by, among others, ferrochrome smelters operating at Sohar Freezone that require high-quality grades of Omani chromite ore as feedstock for their operations. With much of the country's current output of chromite ore currently being exported under existing supply commitments, the government has been compelled to consider more strident measures to ensure adequate supplies of locally sourced chromite ore to the nation's fledgling, but promising, ferrochrome smelting industry.
One such measure being contemplated by the Public Authority for Mining (PAM) is the revocation of chromite mining licenses that have not been acted upon for five years and more. The initiative has the backing of the Implementation Support & Follow-up Unit (ISFU) – a task force operating under the auspices of the Diwan of Royal Court to fast-track approvals of projects deemed imperative to fuelling Oman's economic diversification.
A team comprising officials of the Public Authority for Mining and ISFU reviewed as many as 50 chromite mining licenses that were dormant for extended periods of time. Of this number, 38 licenses that were issued prior to 2015 were cancelled following due process. Barring two other licenses which are the subject of ongoing litigation, the others -- particularly those issued during 2015 and later -- were submitted for the consideration of the licensing committee of PAM for renewal.
An estimated 670,000 tons of chromite ore valued at around RO 19.6 million were produced at various sites across north Oman during 2019. This compares with an output of 836,000 tons of ore, worth over RO 30 million, produced in 2018.
