MEM and Knights Bay Company inked a mining agreement for Concession Area No. 21

MEM and Knights Bay Company inked a mining agreement for Concession Area No. 21

Tuesday, March 14, 2023

The Ministry of Energy and Minerals signed a mining concession agreement with the British company "Knights Bay" to obtain the concession right in mining area No. 21.   Night Bay aspires to be the first company to extract nickel and its derivatives with high purity without any carbon emissions (zero carbon).

The agreement was signed by Eng. Salim Nasser Al Awfi, Minister of Energy and Minerals.

The company strives to explore key raw materials, iron materials, and industrial minerals, with the objective of establishing, developing, and processing battery minerals (nickel and cobalt) in the Sultanate of Oman to satisfy global demand for nickel metal via electric vehicle manufacturers.

According to Dr. Salah Al Dahab, Director General of Investment at the Ministry of Energy and Minerals, this agreement is aligned with the government's policy to allocating mining concession areas in order to promote investment in the Sultanate of Oman's mineral sector. This agreement, he pointed out, is the first mining agreement with a foreign investor.  He also stated that the early investments in the exploration and appraisal phase are estimated at about USD 25 and USD 30 million during the first three years, with a total area of 1,444 square kilometres to be covered. This phase includes geological surveys and the drilling of a number of exploratory and appraisal wells, as well as chemical analysis to confirm the quantities of mineral reserves in accordance with internationally accepted standards.

Dr. Dahab added:  "What distinguishes this project is that it is founded on boosting the added value of laterite ore by extracting nickel from it. If the evaluation's findings are favourable, this project will be a spark for the development of a varied economy, paving the way for high-value investments in quality and industrialization processes over the project's course and serving as a model for future partnerships of a similar nature."

On his turn, Brian Spratley, Chairman of the Board of Directors of the British company "Knights Bay" said that the agreement is crucial accomplishing the strategy of the Sultanate of Oman, which is to enhance the growth of non-oil industries and foster economic diversification.

He claimed that Knights Bay comprises a team of distinguished experts in the fields of mining, infrastructure, and the environment, and that they are constantly striving to develop various projects that contribute to the development and growth of investment in mining companies, as this is done through their global network of mining and infrastructure specialists.

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