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Mining in Saudi Arabia and Oman
One of the significant by products of the rapid growth in the GCC is the lack of interest in developing non-oil sector and maximizing its contribution to GDP. It is true that mining industry does not get the due interest in GCC countries.
The situation started to change recently with the growing awareness of the importance of mining industries and the gradual depletion of oil reserves. Most GCC countries eye alternative energy resources and some of them already appointed international consultants and conducted surveys to explore the possibility of developing mineral industries and alternative power resources. Many analysts believe that miming industry will become one of the major contributors to GDPs in the Gulf region within a short span of time.
In Saudi Arabia researches proved that it has more than 35 types of minerals including 20 million tons of gold, 60 million ton of copper and 10 billion tons of phosphate. The Sultanate of Oman is also said to be abundant with mineral wealth.
Diversification programs in Saudi Arabia
Saudi Arabia has done good headway in diversifying its production base and achieving balanced development at its regions as well as ensuring better utilization of its resources. The ministry of oil and mineral wealth in Saudi Arabia has a long term strategy for mineral exploration. It also provides a number of investment opportunities for Saudi as well as foreign investors. It also established a central data base on minerals that include the researches, studies and geological maps conducted up to date. The ministry also established a number of mining complexes at its different parts in a bid to provide healthy and secure investment environment.
Pertromin as well as other mining companies that are exploring for mineral managed to explore rich reservoir of different kinds of minerals.
Two geographical areas of about 1 million km are abundant with gold, iron , copper , phosphate , silver and uranium, coal and zinc reservoirs.
Studies and exploration works proved that more than 800 locations that contain gold are not yet utilized including Mahd Al Zahab area which was inaugurated at the reign of late Kign Fahd bin Abdul Aziz. The area, about 180 km east of Jeddah , contains about 20 million tons of gold. Copper was also found at Mahd al Zahab and Aqiq region as well as south of Umlog. Iron was also found at Wadi Fatimah north east of of Makkah and north of Bisha. Silver was found at north of Qunfidah. Radioactive minerals are found in granite rocks in the western regions. Abundant reserves of Phosphate are also found in North of the Kingdom.
Generally speaking, researches point out that Saudi Arabia is abundant with mineral wealth. The Kingdom government has initiated a comprehensive program for exploration and utilization of minerals.
Early beginning in Oman
In its bid to diversify sources of national economy , the Sultanate of Oman has early started opening the door before private investment in mining industry. In compliance with WTO joining terms , the Sultanate has provided the legislative and legal framework that lures foreign investment and ensures fair competition.
The Sultanate has also conducted a number of surveys , some of them by Oman Mineral Company in the early 80s . Work is underway to produce an accurate geological map of mineral wealth. The mining law allows the private sector to invest in mineral industries and explore for minerals.
Oman's mineral resources include chromate, dolomite, zinc, limestone, gypsum, silicon, copper, gold, cobalt and iron, to name but a few. Several industries have grown up around them as part of the national development process, which, in turn, have boosted the minerals sector’s contribution to the nation’s GDP as well as providing jobs for Omanis. Copper has been mined in Oman for thousands of years.
During the period from 1983-1984 , OMCO has exported about 20 million tons of cooper and silver. Gold is also produced but at marginal quantities. Oman Chromate Company has started exporting chrome to Japan and Philippine at the mid 90s .
During the 90s , French and Japanese companies explored gold at the northern and eastern part s of the Sultanate and found about 12 million tons of gold and copper. There are also some evidences about the presence of diamond in Housh al Qahf , east of Oman.
Coal was also found in the early 80s in Sur. Studies conducted in collaboration with UN evidenced about 122 million reserves of coal. The Sultanate annually produces 0.5 – 0.6 million tons of coals .
Yemen
Yemen’s geology is featured by the diversity of its topographic relief as well as its promising and productive structures.
There are encouraging prospects for mineral wealth investment, as surveys confirm the existence of large quantities of gold in Hadramout Valley towns and an estimated 687,000-ton geological reserve containing about 15 tons of gold. Gold also is present among rocks in Sana’a, Abyan, Al-Jawf and Al-Beidha areas.
According to the report by the Geological Survey Department, surveys confirm the existence of about four million tons of copper and nickel north of Mukalla and in the Hamoura area of Taiz governorate.
Old silver mines were discovered in Radhradh area in Nahm, as well as discovery of significant zinc and lead mineral ores in a reserve estimated at about 3,073 million tons. The reserve contains an average of 15.3 percent zinc and 1.6 percent lead, as well as 155 kilos of sedimentary rock in the southern end, particularly in Shabwa and Masilah.
The report also pointed to existence of iron in Mekiras and Sa’ada, in addition to other large quantities of metals, industrial rocks and nonmetallic ores of commercial indicators. These discoveries represent promising investment opportunities as income alternatives instead of reducing the country’s oil quantity.
Major challenge
Despite the current initiatives by the Yemeni government to promote the role of private sector and lure foreign direct investments, still it is required to open the door with more flexibility before private investment to establish down stream industries and promote investment at the investment areas. It is also required to simplify the license procedures, provide the basic infrastructure and provide investors with reliable data and studies. It should also provide finance mechanisms that lure foreign investors. There should be also mobilization of resources and concentration of efforts.
The situation started to change recently with the growing awareness of the importance of mining industries and the gradual depletion of oil reserves. Most GCC countries eye alternative energy resources and some of them already appointed international consultants and conducted surveys to explore the possibility of developing mineral industries and alternative power resources. Many analysts believe that miming industry will become one of the major contributors to GDPs in the Gulf region within a short span of time.
In Saudi Arabia researches proved that it has more than 35 types of minerals including 20 million tons of gold, 60 million ton of copper and 10 billion tons of phosphate. The Sultanate of Oman is also said to be abundant with mineral wealth.
Diversification programs in Saudi Arabia
Saudi Arabia has done good headway in diversifying its production base and achieving balanced development at its regions as well as ensuring better utilization of its resources. The ministry of oil and mineral wealth in Saudi Arabia has a long term strategy for mineral exploration. It also provides a number of investment opportunities for Saudi as well as foreign investors. It also established a central data base on minerals that include the researches, studies and geological maps conducted up to date. The ministry also established a number of mining complexes at its different parts in a bid to provide healthy and secure investment environment.
Pertromin as well as other mining companies that are exploring for mineral managed to explore rich reservoir of different kinds of minerals.
Two geographical areas of about 1 million km are abundant with gold, iron , copper , phosphate , silver and uranium, coal and zinc reservoirs.
Studies and exploration works proved that more than 800 locations that contain gold are not yet utilized including Mahd Al Zahab area which was inaugurated at the reign of late Kign Fahd bin Abdul Aziz. The area, about 180 km east of Jeddah , contains about 20 million tons of gold. Copper was also found at Mahd al Zahab and Aqiq region as well as south of Umlog. Iron was also found at Wadi Fatimah north east of of Makkah and north of Bisha. Silver was found at north of Qunfidah. Radioactive minerals are found in granite rocks in the western regions. Abundant reserves of Phosphate are also found in North of the Kingdom.
Generally speaking, researches point out that Saudi Arabia is abundant with mineral wealth. The Kingdom government has initiated a comprehensive program for exploration and utilization of minerals.
Early beginning in Oman
In its bid to diversify sources of national economy , the Sultanate of Oman has early started opening the door before private investment in mining industry. In compliance with WTO joining terms , the Sultanate has provided the legislative and legal framework that lures foreign investment and ensures fair competition.
The Sultanate has also conducted a number of surveys , some of them by Oman Mineral Company in the early 80s . Work is underway to produce an accurate geological map of mineral wealth. The mining law allows the private sector to invest in mineral industries and explore for minerals.
Oman's mineral resources include chromate, dolomite, zinc, limestone, gypsum, silicon, copper, gold, cobalt and iron, to name but a few. Several industries have grown up around them as part of the national development process, which, in turn, have boosted the minerals sector’s contribution to the nation’s GDP as well as providing jobs for Omanis. Copper has been mined in Oman for thousands of years.
During the period from 1983-1984 , OMCO has exported about 20 million tons of cooper and silver. Gold is also produced but at marginal quantities. Oman Chromate Company has started exporting chrome to Japan and Philippine at the mid 90s .
During the 90s , French and Japanese companies explored gold at the northern and eastern part s of the Sultanate and found about 12 million tons of gold and copper. There are also some evidences about the presence of diamond in Housh al Qahf , east of Oman.
Coal was also found in the early 80s in Sur. Studies conducted in collaboration with UN evidenced about 122 million reserves of coal. The Sultanate annually produces 0.5 – 0.6 million tons of coals .
Yemen
Yemen’s geology is featured by the diversity of its topographic relief as well as its promising and productive structures.
There are encouraging prospects for mineral wealth investment, as surveys confirm the existence of large quantities of gold in Hadramout Valley towns and an estimated 687,000-ton geological reserve containing about 15 tons of gold. Gold also is present among rocks in Sana’a, Abyan, Al-Jawf and Al-Beidha areas.
According to the report by the Geological Survey Department, surveys confirm the existence of about four million tons of copper and nickel north of Mukalla and in the Hamoura area of Taiz governorate.
Old silver mines were discovered in Radhradh area in Nahm, as well as discovery of significant zinc and lead mineral ores in a reserve estimated at about 3,073 million tons. The reserve contains an average of 15.3 percent zinc and 1.6 percent lead, as well as 155 kilos of sedimentary rock in the southern end, particularly in Shabwa and Masilah.
The report also pointed to existence of iron in Mekiras and Sa’ada, in addition to other large quantities of metals, industrial rocks and nonmetallic ores of commercial indicators. These discoveries represent promising investment opportunities as income alternatives instead of reducing the country’s oil quantity.
Major challenge
Despite the current initiatives by the Yemeni government to promote the role of private sector and lure foreign direct investments, still it is required to open the door with more flexibility before private investment to establish down stream industries and promote investment at the investment areas. It is also required to simplify the license procedures, provide the basic infrastructure and provide investors with reliable data and studies. It should also provide finance mechanisms that lure foreign investors. There should be also mobilization of resources and concentration of efforts.
Minerals in Oman and Saudi Arabia
| Oman | Saudi Arabia | |||
| North and west regions | Al Qahfa | South and Wusta | Western Shield Region | Al Haql region |
| Copper and chrome | Silica | Gypsum , heavy sand | gold | Phosphate |
| Gold , silver , zinc | Lonlin | Salt and phosphate | Iron | Potash |
| Nickel | Copper and iron | Dolomite and silica | Cooper | Barite |
| Platinum | zinc | Rock and dolomite | Phosphate | Fluorite |
| coal | Diamond | Gypsum | Silver | Asbestos |
| Manganese |
| Boxite | Uranium | Salt ,gypsum, glass sand , porcelain mud , sulphur |
| Gypsum |
| Zinc and copper | Coals and zinc |
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| Zinc |
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