Annual

Report
2022
MDO | Annual Report 2
Local investment constitutes one of the basic pillars of diversification of the
national income. With the launch of a set of national programmes and the provision
of appropriate grounds for investment, we encourage everyone to invest locally.
We have lucrative investment opportunities at hand in all fields and we look
forward to seeing our country become a destination for pioneering investments,
notably in spheres that consolidate our approach to expand the volume of the
national economy and diversify the sources of income. Our country, thanks be to
the Almighty Allah, boasts a wide range of competitive incentives, great potential
and promising opportunities that need to be utilised.

His Majesty Sultan Haitham Bin Tarik

11 Jan 2022

MDO | Annual Report 3

 About MDO 05

Chairman’s Message 06

Our Journey 10

Financial Performance Report 2022 12

Concession Areas 14

Table Exploration and Evaluation 16

of Company Projects 18
Contents
Governance 24

Human Capital 26

Local Content 27

MDO | Annual Report 4

About
MDO

Minerals Development Oman SAOC is a closed joint-stock

company registered under the Commercial Companies Law of
the Sultanate of Oman. The Company was legally incorporated
on 17th July, 2017. The Company is 76.8% owned by Oman
Investment Authority “OIA” and the other 23.2% is owned
by Oman National Investment Company “TANMIA”. The
Company was established with a clear strategic vision to
unleash the potential of the mining sector by investing directly
in or enabling various projects across a range of material
commodities and value chains, to generate sustainable returns
for its shareholders, Oman and its people.

Vision
To be a role model for profitable mining investments
and a global centre of excellence.

Mission
To be a leader in the responsible development of
Oman’s mining sector by delivering the necessary
financial, know-how, and adapting best in class
practices to maximise the value of Omani mineral
resources.

Values
– Sustainability
– Innovation
– Excellence
– Integrity
– Growth

Know more about MDO

MDO | Annual Report 5

 Management Report
Chairman’s
Message
2022 was an exceptional year for Minerals
Development Oman (MDO). We have ended the
year on a high note, with the issuance of 12 Royal
Decrees approving the exploration and mining
concession agreements.
This step was taken after the Ministry of Energy
and Minerals adopted a new methodology for
the development of the mineral sector, through
the preparation of concession agreements that
encompass legal, technical and financial aspects
of the management of a number of minerals.
With this new approach, we have begun our
journey towards enhancing the contribution of
the mining sector to Oman’s GDP in accordance
with Oman Vision 2040.
MDO currently operates concessions covering
21,955 square km, which include numerous
potential minerals of economic value, including
copper, gold, and chromite.
The mining and exploration of all of these
concession areas is carried out by MDO. As
for the non-metallic minerals covered by the
agreements, they include dolomite, silica,
gypsum and limestone. Located in the Wilayat
of Shaleem, and covering a total area of 1,489
square km, three of these concession areas have
reached an advanced stage in the exploration
phase and are ready for development.
MDO | Annual Report 6
The company currently focuses on developing
potential investment opportunities to attract
new foreign investment in the downstream
mining sector. Through this, MDO aims to
improve the effectiveness of its mining
operations, while taking advantage of foreign
investment laws and a dynamic business-
friendly environment that aligns with the
objectives of Oman Vision 2040.
In 2022, MDO made significant progress in key
projects. The company succeeded in boosting
the economic potential of the Mazoon copper
project located in Yanqul by intensifying its
exploration and mining efforts. As a result, the
growth of proven reserves now stands at 22.9
million tons of copper ore.
Moreover, the Shaleem Complex for Industrial
Minerals project is making good progress.
The project has advanced to the stage of
conducting detailed economic feasibility
studies, along with developing engineering
designs for the port, as MDO has obtained the
initial approval from the Ministry of Transport,
Communications and Information Technology
to establish a seaport linked to the project in
the Wilayat of Shaleem.
With regard to the downstream sector, MDO
and its partners commemorated the laying of
the foundation stone for the Sohar Titanium
project. Aimed at producing titanium dioxide
in the Free Zone in Sohar, the project will
be established on an area of more than
120,000 square meters. This accomplishment
represents the company’s efforts in enhancing
the manufacturing industries in the mining
sector in the Sultanate of Oman.
MDO is making strides in fulfilling its vision of
becoming the benchmark for mining-related
investments and a global centre of excellence.
By prioritising our core values of sustainability,
integrity and excellence in all aspects of our
operations, and by continuously striving for
innovation and enhancing the performance
of our employees and subsidiaries, we are
confident in becoming a significant contributor
to the national economy, and a key player in
Oman’s renewed renaissance under the wise
leadership of His Majesty Sultan Haitham bin
Tariq.

I would like to express my sincere gratitude and

appreciation to the members of the Board of
Directors, for their wise guidance and strategic
long-term vision towards the development of
the mining sector in the Sultanate of Oman.
Additionally, I thank company’s employees for
their dedication and exceptional contribution,
which have enabled MDO to become one of the
contributors to Oman’s economic diversification
plan.

Dr. Badar Al Kharusi

Chairman of the Board of Directors
Minerals Development Oman
 Strategic
Objectives
Minerals Development Oman (MDO) was established to invest in the
mining sector, unlock its potential and increase its contribution to
the GDP, in order to achieve the vision of the wise government in the
economic diversification plan, through a clear strategy based on:
– Enhancing profitability and maximising shareholders wealth
– Securing profitable investment
– Maximising value addition
– Deploying cutting-edge technologies
– Developing local capabilities

MDO’s
Strategic
Minerals

MDO’s strategy is based on the Metallic Minerals

following pillars: Copper
– Investing in exploration and
excavation of the concession areas Gold
to build a strong base of mineral Chromite
reserves
– Developing sustainable mining
projects in the upstream to extract Industrial Minerals
mineral ores
Gypsum
– Utilising the extracted raw materials
by investing in value-added projects Limestone
in the downstream
Silica
Dolomite
Salt

MDO | Annual Report 8

 MDO’s MDO’s investment portfolio consists of several subsidiaries
and SPV companies that were incorporated to develop
upstream and downstream projects targeting multiple
Subsidiaries strategic minerals in the Sultanate of Oman

100% 100% 100% 70%

Mazoon Oman Wafra Duqum
Mining Mining Mining Quarries

51% 40% 35% 25%

Naqa Ahjaar Sohar Oman
Salt Mining Titanium Chromite

20% 14.8%
Knooz Oman Oman
Synergies
Holding Casting

Upstream Sector
Know more about our
Downstream Sector investment portfolio

MDO | Annual Report 9

 MDO’s 2017
Journey
– Minerals Development
Oman (MDO) was
established as a closed
joint-stock company
2018
registered under the
Commercial Companies – Mazoon Mining
Law of the Sultanate of Company was
Oman. established.
– The first geological – MDO acquired
study was started for 15% of the
Industrial Minerals Oman Chromite
Project in Wilayat of Company shares.
Shaleem.

2019
Ahjaar mining
2020
company was
established. A geological & economic
feasibility study
was carried out for
redevelopment of Al
Bayda, Al Araja & Al Asil
mines located in Block 4 in
Wilayat of Sohar.

MDO | Annual Report 10

MDO’s Journey

2021
– Wafra Limestone company was established.
– MDO signed a partnership pact for
the development of a titanium dioxide
production plant in Suhar Free Zone
2022
– MDO has successfully acquired 14% of
Synergies Castings Oman project to – Issuance of Royal
produce high-end aluminum alloy wheels Decrees granting MDO
for automobiles in Suhar Industrial Estate 12 exploration and
mining concession
– MDO acquired 20% of Knooz Oman Holding areas on an area of
Company. 21,955 sqkm.
– MDO acquired 100% ownership of Oman – First airbone
Mining Company. geophysical survey
– Commercial operation of Gabbro Quarry project was conducted
started in Wilayat of Liwa. for the exploration of
mineral ores
– Laying the foundation
stone for the Sohar
Titanium Project

MDO | Annual Report 11

 Financial
Performance

Revenue
During the financial year ended 31 December 2022,
MDO Group generated a revenue of

OMR 5.5
million

Net Profit/
Losses
During the financial year ended
31 December 2022, MDO Group -

successfully managed to reduce the net

Budget 2022

Actual2022

(500,000)
loss compared to approved budget by

45%
(1,000,000)

(1,500,000)

(2,000,000)

(1,904,608)
to reach OMR 1.9 million in 2022 (2,500,000)

compared to budgeted loss of (3,000,000)

3.4 million.
(3,500,000)

(3,441,238)
(4,000,000)

MDO | Annual Report 12

Exploration and
Evaluation Assets
MDO Exploration and Evaluation
Assets (EEA) has also increased 105,000,000
104,507,981
exploration in 2022 by

4%
104,000,000

103,000,000

102,000,000

101,000,000
100,572,535

to reach OMR 104.5 million 100,000,000

compared to OMR 100.5 million in

99,000,000
2021. The OMR 4 million addition
in EEA was mainly in Block 12A1 98,000,000

(Mazoon Copper project), Block 4, 2021 2022

Shaleem project, Block 52 (Masirah

Island) and others.

Net Asset
Going
160,000,000
concern
140,000,000 136,348,298

120,000,000

100,000,000
At year end, the Group has a
80,000,000
healthy financial position with
60,000,000 58,555,316

fixed deposits of OMR 36.5 million

40,000,000
placed with financial institutions as
20,000,000
well as cash and cash equivalents of
-

OMR 2.3 million.

2018 2022

Furthermore, the Group has net

In the last 5 years, the group net asset has
increased from OMR 58.6 million in 2018 to current assets of OMR 5.7 million
as at the end of financial year 31

OMR December 2022 which is sufficient

136.3
for the Company to continue as a
going concern.

in 2022. MDO | Annual Report 13

 Concession
Areas

A new start in the mining sector has been made in the Sultanate with
the issuance of Royal Decrees approving exploration and mining
concession agreements. With this modern legal framework, MDO
will be able to expand its business significantly in the future.

MDO | Annual Report 14

 3658 sqkm 2384 sqkm 2569 sqkm
Ibri, Saham,
1424 sqkm
Saham,
Suhar, Liwa, Al Rustaq, Al Khaboura, Al Suwaiq,
Al Khaboura Suhar Al Khaboura,
Shinas, Mahdah
Saham

2946 sqkm
Samail, Izki,
Al Mudhaibi,
Bidbid, Manah

11-B

19.8 sqkm 12A-1

12-B
12A-2
Yanqul
2140 sqkm 13-A
13-B

24 23
Yanqul, Dhank,
Al Buraimi, Ibri, 4278 sqkm
Suhar, Saham
Muscat,
Al Amirat,
Quriyat

658 sqkm
21,955 SQKM 52
Masirah

61-B 61-C
61-A

412 sqkm
Shaleem

508 sqkm
Shaleem
569 sqkm
Shaleem
Metallic Minerals
Industrial Minerals

Today, MDO has become the largest owner of mining

concessions in the Sultanate of Oman covering a total
area of 21,955 SQKM. MDO | Annual Report 15
 Exploration

Exploration programmes are the

cornerstone of MDO’s business
strategy, which aims to provide a
sufficient mineral resource base
to meet market needs. Mid 2022,
MDO launched a large exploration
programme focused on metallic and
industrial minerals in its concession
areas. These programmes focus on
three main areas:

1/ Geophysical Survey
During the course of the year 2022, MDO
conducted the largest airborne geophysical
survey in the Sultanate’s history, covering its
concession areas with devices carried on
aircraft. Approximately 16,000 square
kilometers were covered, while the total lines
amounted to 121,000 kilometers.
These surveys are carried out by Sander
Geophysics Ltd., one of the world’s leading
companies in the field of geophysical surveys,
with over 60 years of experience.

2/ Surface Geochemistry
Geochemistry is an essential activity in the
company exploration journey.
MDO has begun studying stream sediments in
a number of waterways within its concession
areas. In 2022, the exploration team completed
50% of the geochemical surveys programme
by analysing 500 sediment samples and
performing geochemical analysis.
Geochemistry is a complementary step to
airborne geophysical surveys.

3/ Drillings
MDO conducted a wide range of exploration
drilling activities in its concession areas in
2022, through which metallic and industrial
mineral ores were targeted at a total depth of
12,674 meters.
MDO | Annual Report 16
Geophysics
16,000 sq.km
Area Covered

21,000 km
Total Lines

A UNIQUE ADVANCED AIRBORNE

SURVEY PROJECT IN THE SULTANATE
OF OMAN.
Four sets of geophysical data will be acquired
simultaneously.
The airborne survey is a primary step in the
exploration for metallic ore, which hopefully
will result in the discovery of potential sites.
Surface
Geochemistry
Geophysical Methods Oct 2022
Project Initiated
Magnetic Electromagnetic
Radiometric Gravity 7 Months
Project Timeline

Drilling
3,000 M 2,400 M 4,000 M 9,500 M
Completed Completed out of 10,000M (ongoing) Completed
Block 4 (Copper) Shinas (Chromite) Yanqul (New Prospect) Shaleem
(Gypsum, Limestone & Dolomite)

1,100 M 1,000 M 1,000 M 488 M

Completed Ongoing Ongoing Ongoing
Mahout (Silica) Quriyat (Dolomite) Quriyat (Silica) Duqm quarries (Limestone)

MDO | Annual Report 17

 MDO’s
Projects

Mazoon Mining
This project is located in the Wilayat of
Yanqul, Al Dhahirah Governorate, in the
concession area (12A-2), and covers an
area of 20 square kilometers. It consists
of five mines with 22.9 million tons of
copper ores and 1.5 million tons of
production capacity a year. Project
development is expected to begin in
2025.

Yanqul Copper and Gold

Shaleem Industrial Minerals Complex

Located in Shaleem, Dhofar Governorate, this project
covers a 1,500 square kilometer area. MDO’s geological
studies revealed 960 million tons of gypsum deposits with
a purity of up to 97%. Also, studies confirmed the existence
of limestone deposits of 1.9 billion tons with a purity of
99.5%, in addition to dolomite ore. In 2022, the company
completed the preliminary economic feasibility study of the
project. The company will complete the detailed economic
feasibility study in 2023 along with the engineering work
to build Shaleem Industrial Complex, which includes
a specialised mining port as well as an industrial zone
developed by Madayn in order to establish downstream
industries related to the mining.

Shaleem Limestone, Gypsum and Dolomite

MDO | Annual Report 18

Naqa Salt
This project aims at extracting
salt from seawater from Bar Al
Hikman in the Wilayat of Mahout.
The project focuses on producing
high purity salt to be exploited in
downstream chemical projects
and applied in other industrial
applications. The plan is to build
salt evaporation ponds that can
produce about
Ahjaar Mining
Ahjar Mining Company produces gabbro ore
through its quarries in the Wilayat of Liwa in Al
Batinah North governorate with a production
capacity of 2.4 million tons of gabbro annually.
Since obtaining the exploration license, the
Company has conducted geological and economic
feasibility studies that revealed a recoverable
amount of about 211 million tons of gabbro in a
mine life of about 50 years, covering an area of 2.2
KM2. Purchase agreements were also signed for

1.5 million
tons of raw salt annually.
2.4 million tons of gabbro. The shareholders have
ambitious plans to increase production to reach 5
million tons in the next phase.

Mahout Salt Liwa Gabbro

Sohar Titanium
MDO signed a partnership pact deal
with Stork International for the joint
development of a titanium dioxide
production plant by owning 35%
of the project shares in Suhar Free
Zone covering an an area of more
than 120,000 square meters. The
foundation stone for the project
was laid in 2022, and commercial
production is expected to begin in
Q1 2025. Sohar Titanium Dioxide

MDO | Annual Report 19

 MDO’s
Projects

Duqm Quarries
This project aims at developing a
plant for the mass production and
export of cement grade limestone
to international markets through
Duqm port. This step represents
a remarkable leap in overcoming
the challenges resulting from the
deceleration in construction activities
in the Duqm region. During the year,
MDO implemented a new exploration
programme for limestone, through
which
150 million
tons of high-quality limestone
ore was explored, which could be
marketed to the iron and pigments
industries.
Wafra Mining
The initial feasibility study conducted by
MDO revealed a recoverable amount of
about
15 million
tons of high-purity limestone in its
concession area in Wadi Al-Jizzi.
About 1 million tons of material will be
produced annually, which will serve the
steel plants as well as other customers
in Al Batinah region. It is hoped that the
commercial operations and exporting
will begin in the first quarter of 2023.
Paving roads and extending water and
electricity services were completed in
2022.
A 10-year contract was also signed with
a buyer for the supply of limestone ore.

MDO | Annual Report 20


Block 4 Mines Redevelopment
A detailed economic feasibility study
conducted by MDO in 2022 revealed
the presence of commercial quantities
of copper ore ammounting to about
2.6 million
tons that have not been exploited.
The decision to invest in redeveloping
the mines of Al Bayda, Al Araaj, and
Al Asil was approved, conditional on
obtaining the necessary permits and
approvals.
Oman Chromite Company
Oman Chromite Company is a public
shareholding company operating in
the mining sector, specifically in the
exploration of chromite metal in the
Sultanate. The company produces
two types of chromite ore, which
are refractory and metallic ore. The
company exports its products to
many international markets such
as Japan, China, India, Germany,
Thailand, South Korea and South
Africa. The company acquired
20%
of the ferrochrome plant project
in Sohar in order to expand its
commercial operations. MDO owns
25.4% of Oman Chromite Company.
MDO | Annual Report 21
 MDO’s Projects

MDO | Annual Report 22

Knooz Oman Holding
Kunooz Oman Holding was established in
January 2014 by merging five subsidiaries
and two associate companies in the
mining, quarrying, transportation and
building materials sectors. The company’s
business is concentrated in the production
of gypsum, gabbro, limestone and marble
ores, in addition to concrete works and the
production of building materials. MDO owns
20% of Knooz Oman Holding Company.
Oman Mining Company
As part of the OIA’s efforts to restructure
some of the government assets, 100%
ownership of Oman Mining Company was
transferred to MDO 100%. MDO continues
its efforts to restructure OMCO’s business,
assets, and resources in order to improve
its commercial performance, in addition
to carrying out studies for a number of
geological assets owned by the Company
such as the limestone concession area in
Wadi Al-Jizzi and the Block 4 mines, with the
aim of achieving rapid financial returns within
the improvement plan for the company.
Al Wusta Mining
MDO exploration programmes in the
Wilayat of Mahut, led to the discovery of
around 40 million tons of high-quality
silica ore reserves. MDO established
the Al-Wusta Mining Company with
the purpose of developing the project
and implementing economic feasibility
studies in order to produce high-quality
silica ore to support the local glass
industry in the first stage of the project.
Oman Synergies Casting
This project aims to develop
a plant for aluminium wheels
manufacturing in Suhar Industrial
Area with a production capacity of
2.1 million tons, as the first plant
to produce high-quality aluminium
wheels for vehicles in the Sultanate.
Commercial production began in
mid-2022. MDO owns 14.8% of
Synergies Castings Oman.
MDO | Annual Report 23
 Corporate
Governance
Report
MDO believes that corporate governance
plays a pivotal role in enhancing the
Company’s performance and creating
long-term value for the shareholders. MDO
is committed to adhering to the highest
standards of management and ensuring the
necessary internal controls required.
During the year, MDO continued to
implement the governance system issued
by the Oman Investment Authority (OIA)
that covers 6 policies including legal affairs,
institutional communication, contracts and
procurement, investment, divestment, and
code of conduct.
Utilizing its internal resources, MDO
has successfully developed its strategic
MDO | Annual Report 24
business plan that was approved by the
shareholders. Moreover, its annual corporate
key performance indicators were approved
During the year 2022, the Board of
Directors conducted 10 meetings, fully
aligned with the internal guidelines and
the related governing laws. Furthermore,
5 meetings were conducted by the Audit
and Risk Committee, and 4 meetings were
conducted by the Investment Committee.
Moreover, MDO continued to work closely
with the Ministry of Energy and Minerals
(MEM) to achieve the Government’s vision
towards improving the mining investment
environment through a number of
initiatives, the most significant being the
issuance of 12 Royal Decrees approving exploration and
mining concession agreements, which marked the start
of a new era for the mining sector in the Sultanate within
a modern legal framework that will be a key enabler for
the Company’s future growth.

MDO signed a cooperation agreement in 2022 with

the SME Development Authority aimed at providing
business opportunities and supporting small and
medium-sized enterprises.

In December, MDO endorsed its records management

manual by National Records & Archives Authority
(NRAA). The agreement aimed at identifying indexing
fields and setting retention periods for different types
of documents to be archived in compliance with the
Documentation and Archiving Law promulgated by Royal
Decree No. 60/2007, which enhances the Company’s
ability to manage its documents in accordance with the
regulating laws.

MDO | Annual Report 25

 Human
Capital
Cadre Development

Omanisation MDO focuses on developing the skills

of its employees. During the past year,
the total number of training hours for
With MDO’s employees reached
commitment to
providing young
Omani talents with
87%
the skills they need
to lead the mining
sector in the future, 4183
the Company has achieved an Omanisation rate of
around 87%. HOURS
in technical and administrative
The company also provides a stimulating work
specialisations.
environment for young graduates that offers
them unique opportunities to work in various jobs, Prioritising Omani talents in filling
including geology, exploration activities, human vacant positions, by the end of 2022
the Omanisation rate of the entire
resources and finance, business development, and group reached 72.7%
others.

MDO | Annual Report 26

 In-Country Value
Local
Since its establishment, MDO
Content strives to support the growth of
SMEs by requiring its partners to
hire locally, source their needs
from local suppliers, and patronize
local service providers.
Local Community MDO assigned a number of
Development projects to

MDO is committed to allocating minimum of 1%

of its revenues to support the social investment
programmes in various areas such as supporting
and developing the local community, developing
competencies, and contributing to environmental
conservation activities.
worthOMR 6.8
million
in a number of areas including
surveying, exploratory drilling,
connection, operation,
maintenance and others, as a part
of its endeavors toward supporting
SMEs & boosting their business
growth.

MDO | Annual Report 27

www.mdo.om