Sohar extends $49m funding to Al Hadeetha for key mining project
Sohar International, a leading bank in Oman, has signed recently an agreement with Al Hadeetha Resources to extend RO19 million ($49 million) worth of financing to the Wash-hi Majazah mining project.
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Sohar International, a leading bank in Oman, has signed recently an agreement with Al Hadeetha Resources to extend RO19 million ($49 million) worth of financing to the Wash-hi Majazah mining project.
Signing the agreement on part of the bank was Ahmed Al Musalmi, Chief Executive Officer of Sohar International, whereas Sayyed Khalid bin Hamed bin Saif Al-Busaidy, Chairman of Al Naba Holding, Devaki Gulabsi Khimji, Managing Director of Al Tasnim Group and Atmavireshvar Sthapak, Managing Director of Alara Resources represented the company.
Ahmed Al Musalmi said: “Mining is one of the government’s key focus sectors as per the economic diversification plan, and Oman’s mining industry has attracted both, foreign and local operators. Regarded as one of the major mining projects in the Sultanate, the scale of its operations will contribute significantly to the overall economy, creating in-country value, job opportunities and much more. At Sohar International, we remain invested in supporting ventures that provide sustainable socio-economic benefits to the community enabling people to prosper and grow.”
Al Hadeetha Resources a joint venture between Alara Resources, Al Hadeetha and Al Tasnim, is the first international joint venture company that has been awarded a copper mining license in Oman for the Wash-hi Majazah project. Located in the Governorate of North Al-Sharqiyah, the Wash-hi Majazah copper deposit has been evaluated under JORC standards for over 16 million tons of copper resources and 10 million tons of mineable reserves.
With an increase in global demand for copper, the Wash-hi Majazah project provides various channels of growth and prosperity in the economy as well as socioeconomical benefits to the Sultanate and local communities such as providing employment for approximately 200 Omanis, local skill developments, opportunities for local suppliers and vendors, infrastructure development and much more.
The factory will be inaugurated in November of this year, coinciding with the country's celebrations of the Glorious National Day.
“A project of this scale requires the right kind of support, and we are grateful to Sohar International for extending their project financing services to ensure that our operations are carried out without any hindrance,” said Sayyed Khalid bin Hamed bin Saif Al-Busaidy, Chairman of Al Naba Holding.
“Supported by the government represented by the Ministry of Energy and Minerals implementing favourable reforms to support the mining industry in Oman, we are certain that developments in this sector will be promising. While the economic benefits from the mining sector will be far-reaching, such mega projects compliment the government’s agenda to establish a decentralized local administration resulting in the various regions of Oman to prosper and grow.
“It is also important to note that Wash-hi Majazah project will contribute immensely to the generation of job opportunities and increasing employment for the local workforce. Apart from individual job seekers, the project will provide ongoing business prospects to local SMEs and vendors,” he added.
With equity contribution of RO8 million bringing up the total valuation of the project at approximately RO27 million, Wash-hi Majazah project will generate cash flows of RO 200 million for a period of 10 years.
“We are always looking at the opportunities that will boost in-country value and we are proud to invest in local cooper miming projects in Oman with our esteemed partners. We appreciate Sohar International for their trust in this project,” said Devaki Khimji, Managing Director-Al Tasnim Group.
AV Sthapak, Managing Director of Alara Resources said” “Alara wishes to thank Sohar International, our fellow JV partners for their valuable support and for their disciplined approach towards realizing our mission of becoming a mid-tier mineral producer with a focus on mineral deposits and projects in Oman. These are exciting times for global copper mining industry and Al wash-hi Majazah Project is destined to write a new chapter for Oman copper.” – TradeArabia News Service
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