MEM to Boost Natural Salt Production with New Concession Agreement

MEM to Boost Natural Salt Production with New Concession Agreement

With a production capacity estimated at 1,200,000 tons annually,

Tuesday, June 24, 2025

In a significant stride towards economic diversification, the Ministry of Energy and Minerals today signed a mining concession agreement with Global Integrated Engineering for concession area I-51 in Al Wusta Governorate, an expansive zone covering 15 square kilometers. The agreement was formally inked by His Excellency Eng. Salim Nasser Al Aufi, Minister of Energy and Minerals, representing the Omani government, and Sheikh Ali Salim Al Junaibi, Chairman of Global Integrated Engineering.

This landmark agreement aims to boost the production capacity of salt compounds from the existing plant and establish additional facilities to increase natural salt output. This will be achieved through natural extraction from the area, utilizing evaporation ponds for seawater that will then be naturally dried by wind and solar heat. Following this, the salt will undergo drying, refining, purification, and packaging. The projected annual production capacity is estimated at 1,200,000 tons, with an anticipated investment value of 200 million Omani Rials.

His Excellency Eng. Salim Nasser Al Aufi emphasized that this project is a crucial strategic step that will effectively drive Oman's economic diversification. He highlighted its potential to create numerous job opportunities for Omani citizens, noting that the primary goal is to boost natural salt production and develop its industrial derivatives. These derivatives will be used in various projects that support sustainable development. This agreement marks the third of its kind for sea salt production in Oman, underscoring the Ministry's commitment to strengthening local industries, maximizing natural resource utilization, and reducing reliance on imports.

Sheikh Ali Salim Al Junaibi, Chairman of Global Integrated Engineering, stated that securing the concession rights for area I-51 in Al Wusta Governorate will be instrumental in achieving their vision to raise the plant's production capacity to one million tons annually. This increased output is expected to meet the demands of the local market and supply existing and under-construction conversion industries, aligning with Oman Vision 2040's economic projects. He added that the company will also focus on producing various salt derivatives required by both local and international markets, particularly those essential for the food, feed, and pharmaceutical industries.

Sheikh Ali Salim Al Junaibi affirmed that this agreement reinforces the government's direction towards localizing industries, leveraging natural resources to their fullest potential, and decreasing dependence on imported goods. All these efforts are geared towards enhancing the performance of the national economic system, which will, in turn, create diverse job opportunities for national cadres and part-time work for small and medium enterprises.

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