[Ferro-Alloys.com]The Omani Public Authority for Mining is weighing whether to extend or cancel dozens of permits for the mining of chromite that have long been in the state of dormant and inactive, as its license holders have not developed or used these mines. 

The move comes at a time when the ferrochrome smelter operating in Sohar Freezone is under increasing pressure from a shortage of raw materials. These smelters require Omani ferrochrome ores of high quality grade as raw materials for their operations.

Since most of the country's current production of chromite is exported on the basis of existing supply commitments, the Government was forced to consider more stringent measures to ensure adequate local chromite supply to the country's nascent but promising ferrochrome smelting industry.

One measure being considered by the Public Mining Authority is the revocation of some permits for the mining of chromite that have not been operational for more than five years. The initiative was supported by the Implementation Support & Follow-up Unit. It is a task force operating under the auspices of the Diwan of Royal Court and is responsible for the rapid implementation of projects considered essential for the diversification of Oman's economy.

Explaining the reasons for reviewing mining permits for idle chromite, the Implementation Support & Follow-up Unit indicated that many of Oman's land contained valuable chromite that had not yet been mined, although many factories needed it to meet their expansion plans, thereby increasing Oman's revenue. Therefore, in order to maximize the use of these raw materials, the initiative aims to review previously invalidated permits for classification and exploitation of sites where mineral resources remain.

A team of officials from the Public Mining Authority and the Implementation Support & Follow-up Unit reviewed up to 50 dormant chromite mining licences. Thereinto, 38 licences issued before 2015 were cancelled after due process. Apart from the two ongoing litigation licences, other licences (particularly those issued in 2015 and beyond) have been submitted to the PMA Licensing Board for renewal.

It is estimated that in 2019, 670,000 tons of chromite ore were produced in various areas of northern Oman, valued at approximately RO 19.6 million (approximately USD 50.91 million). In contrast, production in 2018 was 836,000 tons of ore valued at more than RO 30 million (approximately USD 77.92 million).

China is one of the largest markets for Oman's chromite exports, but more and more chromite is transported to ferrochrome smelters located in Sohar Freezone at different stages of development and operation.

Source: Global Geological and Mineral Information Network