Oman’s copper-gold project may generate $430m revenue

The Al Hadeetha Copper-Gold Project, currently under development in Oman’s Dakhiliyah Governorate, has the potential to generate revenues in excess of $430 million over its initial 10 operational year, said a report.

The venture aims to commercialise the mineral potential of three exploration licenses: Washihi, Mullaq and Al Ajal, said the Oman Daily Observer report.

Washihi, Mullaq and Al Ajal cover a total area of around 105 sq km, and is roughly a two-hour drive from Muscat, it said.

The project is being developed by Al Hadeetha Resources, a locally incorporated company that is 70 per cent owned by Alara Oman Operations, a wholly owned subsidiary of Australian-based international mineral exploration company Alara Resources, and Al Hadeetha Investments of the sultanate.

Citing the findings of a feasibility study that was completed recently, Al Hadeetha Resources said the copper-gold project is expected to yield healthy financial returns on base case assumptions. Revenues are projected at over $430 million over 10 years, with earnings before interest, taxes, and amortization (Ebita) estimated at around $141 million over the same timeframe. Project IRR was envisaged at an impressive 21 per cent.

In parallel, the company is exploring a number of project financing options, including a rights issue. The findings of the feasibility study, it said, have sparked renewed interest in the project from certain interested parties.

Furthermore, in anticipation of the eventual commencement of operations, a concrete timeframe for which has yet to be disclosed, top officials of Al Hadeeetha hosted a community meeting and luncheon with stakeholders representing local communities in which the mining licenses are located.

Also present were officials representing the Public Authority for Mining (PAM), Ministry of Environment and Climate Affairs, Ministry of Regional Municipalities and Water Resources, added the report.