Mining Law-Possible Value Addition Requirements

The Government of the Sultanate of Oman's emphasis on diversification and increased role of the non-Oil and Gas sectors in the national economy has recently led to a focus on the mining industry in the country.

In this respect, Government officials have recently been quoted by newspapers as saying that mining companies operating in Oman should undertake value addition of the extracted minerals within Oman before exporting such minerals.

The objective behind any value addition policy is clearly to increase industrialization in the country and to create new job opportunities. Nevertheless, if a policy of this nature is formally announced and implemented, it will impact the existing mining license holders and those aspiring to obtain such licenses in the future and therefore mining companies should work closely with their advisors and relevant Government authorities to stay abreast of any such developments.