In a pivotal strategic move designed to regulate the export market for raw minerals and significantly enhance the in-country value derived from its natural resources, His Excellency Eng. Salim Nasser Al Aufi, Minister of Energy and Minerals, has issued Ministerial Decision No. 18/2025. This groundbreaking resolution grants the Oman Minerals Trading Company the mandate to organize the marketing and export of minerals from the Sultanate. This pivotal move is a cornerstone of a comprehensive reform agenda, designed to overhaul the nation's mineral management system and foster seamless integration between economic prosperity, environmental stewardship, and social sustainability.In a pivotal strategic move designed to regulate the export market for raw minerals and significantly enhance the in-country value derived from its natural resources, His Excellency Eng. Salim Nasser Al Aufi, Minister of Energy and Minerals, has issued Ministerial Decision No. 18/2025. This groundbreaking resolution grants the Oman Minerals Trading Company the mandate to organize the marketing and export of minerals from the Sultanate. This pivotal move is a cornerstone of a comprehensive reform agenda, designed to overhaul the nation's mineral management system and foster seamless integration between economic prosperity, environmental stewardship, and social sustainability.
A New Regulatory Framework for Enhanced Transparency and Profitability
The new decision introduces strict regulations, particularly for the export of gypsum and chrome ores. It prioritizes satisfying local market demand before any export operations are considered. Additionally, exported chrome ore must now meet a minimum concentration of 36%. However, processed chrome, regardless of its concentration, may be exported with ministerial approval. This decisive move is set to tighten control over marketing operations, reinforce Oman's negotiating power in global markets, and significantly enhance transparency in the pricing of Omani raw materials.
This strategic shift directly addresses long-standing structural challenges within the mineral market, primarily the proliferation of intermediaries and the absence of specialized marketing mechanisms. Such issues have historically led to declining prices despite increasing production volumes. For instance, Oman currently holds 15 active mining licenses for gypsum, with production reaching approximately 14 million tons in 2024. Similarly, there are 29 active licenses for chrome ore, which saw production levels of around 300,000 tons during the same period. These figures underscore the abundance of Oman's mineral resources and highlight the urgent need for unified institutional management to ensure optimal utilization and marketing that maximizes national returns
A National Company to Centralize Mineral Marketing and Exports
The newly formed Oman Minerals Trading Company, a subsidiary of Minerals Development Oman, will centrally manage all mineral exports. This strategic move aims to standardize contracts and specifications, and enable professional negotiations with international buyers. The goal is to elevate the average prices of exported raw materials, significantly boosting national revenues.
Multi-Dimensional Economic and Developmental Impact
This new regulatory framework is expected to curb price manipulation, streamline transportation and export operations, and significantly boost market transparency. It will also grant the government clearer oversight of royalties and returns. Furthermore, the decision is poised to foster local manufacturing opportunities and job creation, support small and medium-sized enterprises (SMEs) throughout supply chains, and cultivate an efficient, integrated business environment.
This initiative aligns seamlessly with the Ministry of Energy and Minerals' efforts to enhance in-country value (ICV). It mandates companies to adopt clear strategies for strengthening local content, encouraging the localization of supply chains and services across all stages of mineral operations, and supporting downstream industries that add value to raw minerals within the Sultanate before export. This also falls under the umbrella of the Ministry's "Majd" initiative, designed to consolidate and evaluate in-country value (ICV) efforts within the energy and minerals sector.
A Year-Long Transition Period
To ensure a seamless transition to the new system, the Ministry has granted a full year-long transition period. This crucial window will allow companies to conclude existing contracts and fully adapt to the new marketing mechanisms. Furthermore, the Ministry plans extensive introductory and training sessions for stakeholders, alongside qualifying specialized personnel to manage sales and negotiation operations within these new frameworks.
Dr. Salah Hafeedh Al Dhahab, Director General of Investments at the Ministry of Energy and Minerals, emphasized the significance of this move: "This decision represents a pivotal milestone in the development of Oman's mineral sector. It embodies the Ministry's direction towards enhancing the efficiency of national resource management through export chain restructuring and the establishment of a national company dedicated to mineral marketing, operating under clear, governance-driven mechanisms. The decision aims to address the challenges the market faced in recent years, primarily the lack of coordination, the proliferation of intermediaries, and price fluctuations, which diminished the competitiveness of Omani products in some markets despite high production volumes and quality."
He added: "By establishing a specialized company under direct government oversight, we seek to create an entity capable of consolidating quantities, standardizing specifications, and negotiating professionally with global markets. This will contribute to raising the market value of Omani products and achieving higher returns for both the state and investors. Furthermore, prioritizing the local market's access to raw materials before export is a strategic step to support downstream industries and enhance the stability of industrial supply chains within the Sultanate."
This decision stems from the institutional transformation led by the Ministry of Energy and Minerals since the merger of the energy and minerals industries. We have diligently focused on developing robust policies and regulations, enhancing the investment climate, and implementing unified governance systems. This sweeping transformation has also involved creating national geological databases, activating in-country value (ICV) plans, and facilitating investor access to incentives within a highly regulated and transparent business environment. These efforts perfectly align with Oman Vision 2040's objectives of building a diversified, sustainable, and knowledge-based economy that optimally utilizes its natural resources.
We are confident that this new regulation will foster a more reliable investment environment, supporting the growth of national institutions and opening doors for lucrative industrial and commercial partnerships. It will also boost employment and uphold vital principles of occupational health, safety, and environmental (HSE) protection, ensuring the mineral sector becomes a crucial developmental tributary within the national economy.
Eng. Mattar Salim Al Badi, CEO of Minerals Development Oman (MDO), affirmed: "We deeply value the Ministry of Energy and Minerals' trust in tasking the Oman Minerals Trading Company with organizing and exporting gypsum and chrome ores. This authorization marks a strategic milestone, poised to boost supply chain efficiency, unify marketing efforts, and ensure transparent, fair pricing. Ultimately, this aligns perfectly with the Sultanate of Oman's aspiration to maximize economic returns from its natural resources."
He added, "We're currently developing an integrated system covering registration procedures, purchase contracts, and globally benchmarked pricing mechanisms. This also includes comprehensive logistics services to ensure reliable supply and flexible shipping. We reaffirm our commitment to prioritizing the local market's access to these raw materials and ensuring the private sector is fully ready to engage with this new model."
A new supplier and buyer registration program is set to launch in Q3 2025, Al Badi further revealed, preceding the system's official go-live in May 2026. He stressed the importance of early engagement with market stakeholders, inviting producers, investors, and trade partners to explore collaboration opportunities under the new framework – be it for exports or through industrial partnerships for local processing and promising investment prospects.
He concluded, stressing that this new direction marks a qualitative leap, poised to unlock the mineral sector's full potential and bolster Oman's competitive standing in global markets.