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As part of plans to further diversify its economy, Oman is fast developing new strategies that will add more value to the mining sector and the Sultanate’s substantial reserves of minerals. Some of those plans were unveiled in Muscat last week, and include the development of a complete supply chain, called the Sohar Dry Bulk Logistics Corridor, that will enable the export of minerals that are mined and processed in Oman to international markets at competitive prices.
The signing of a Memorandum of Understanding (MoU) between Sohar Port and Freezone, Vale and Oman National Investments Development Company is the first step in the process. The agreement builds on the infrastructure already in place in Sohar, currently operated by Vale, to import and export millions of tons of iron ore and pellets every year.
The agreement aims to immediately support the efficient flow of mining cargo to Sohar port, from where materials will be stockpiled, processed and exported to markets all over the world. Vale Oman’s chief executive officer, Sergio Espeschit, said: “Since our operations were inaugurated four years ago, we have committed to the Sultanate to create this Sohar Dry Bulk Logistics Corridor, which will directly benefit the mining and minerals sector in Oman. Our dry bulk terminal in Sohar Port already has the necessary internal infrastructure and logistics capability to support the diversification of Oman’s economy.”
The port authority says the agreement should enable better use to be made of the infrastructure investment that has already been completed. Port chief executive, Andre Toet, added, “That makes so much sense for all of us; it should lead to more growth, more jobs and a more sustainable economic model for Oman.”
