MDO plans an IPO within five years

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هذه الصفحة متوفرة بهذه اللغة: العربية

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20 March 2021

MUSCAT (WAF)- Minerals Development Oman – the government’s arm in developing the mining sector in the Sultanate – seeks to raise its contribution to the GDP during the current five-year plan to reach one billion Omani Rials ($2.6 billion), according to a company spokesperson.

Maan bin Abdullah al-Salmi, Business Development Manager at MDO, spoke at a recent virtual summit about its five-year plan. This includes increasing its participation, offering 40% of its shares for public subscription, and targeting projects with an average return of not less than 12%.

According to al-Salmi’s presentation, MDO has stakes in 8 subsidiaries and associates. It owns majority stakes – or entire stakes – in three companies: Oman Mining Company, Mazoon Mining Company, and Duqm Quarries Company. 

The company also owns 50% of Naqaa Salts Company’s shares, minority stakes in each of Kunooz Oman Holding, Ahjaar Mining, Oman Chromite Company SAOG, and Manajem Mining. 

In addition to the company’s upstream operations in 15 concession areas, MDO is working to ensure that at least 20% of its portfolio focuses on downstream projects.

Al-Salmi also reviewed several projects that the company offers for investors and partners worth more than 300 million Omani Rials ($780 million). Most notably, “Shaleem” project to produce gypsum, limestone and dolomite, with an investment value of $350 million, Mozoon Mining project, with a value of $260 million for mining copper and gold, and Suhar Titanium project, with an investment of 43 million Omani Rials ($111.8 million).

Maan al-Salmi presenting MDO’s plan

It is noteworthy that the mining sector is one of the main sectors that the Sultanate focuses on within the current five-year plan to promote economic diversification. Data by Oman’s National Center for Statistics and Information shows that the mining and quarrying sector’s contribution ranges between 0.4-0.5% of the gross domestic product (GDP). The sector’s contribution amounted to 125 million Omani Rials ($325 million) in 2019.