Investments in Block 10 in Yanqul in the western part of Oman could rise to $1 billion, Kari J R Haataja, CEO and managing partner of Exo Mining was quoted as saying in a media report.
Copper smelter could also be part of the ambitious development should future excavations unearth further large-scale commercial finds, he added, according to an Oman Observer report.
“The copper-gold, and other minerals and metals that are potentially there in Block 10 already represent a huge opportunity for us,” said Haataja. “What we will look to do in the near future is to also to bring other partners, investors and strategic partners for other metals where we don’t necessary need to be a majority shareholder, but we will promote the opportunities in Oman to other investors as well.”
Exo-Mining recently signed an agreement with state-owned Oman Mining Company (OMCO), the licensee of Block 10, as well as the Minerals Development Oman (MDO), the government’s new mining investment and development flagship, for a majority 51 per cent stake in the Yanqul Project Company, a special purpose vehicle that will invest in unlocking the potential of just 10 per cent of the 370 sq km Block 10.
OMCO retains a 29 per cent stake in the project, with MDO owning the remaining 20 per cent. The partners are committed to investing around $100 million in the first three years of the project, the report said.
“As the known (copper-gold) deposits only cover 10 per cent of the total Block 10 area, we believe by starting further exploration of the larger area, we may find additional deposits of copper which then would give reason to invest in a large processing plant or potentially, together with other operators, in a smelter. This is a longer term view,” Haataja said.
Exo Mining — part of Exo Group, an internationally active equity investor through direct investments and joint ventures with established industry players — is set to play a major role in the Yanqul Copper-Gold Project, the report said.
“We will focus, in the first year, on proper exploration while bringing in the resource base to proven reserves. In the meantime, we will also be doing the mining design, mine plan, process flows, engineering, and so on, which will then define the final investment in the first phase,” he added.
Exo Mining sees $1bn spend in Yanqul project
Copper smelter could also be part of the development<br>Image: Bigstockphoto. For illustration only
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