Oman to launch US$260mn mining venture

Oman’s State General Reserve Fund (SGRF), along with other state and private investors, plan to establish a mining venture. With its state finances strained by low oil prices, Oman is trying to involve the private sector more in major economic development projects.

According to sources, the venture - Mining Development Oman (MDO) - will have US$$260mn of capital and establish firms for its investments in various locations, the SGRF’s executive president Abdulsalam Al Murshidi told Reuters.

Three other state firms namely the Oman Investment Fund, Oman Oil Company and Oman National Investments Development Company will combine with the SGRF to take a total 60 per cent stake in MDO.

“Forty percent of the company will be offered to the public. The initial public offer (IPO) is expected by the end of Q2 2016,” Murshidi said.

He added that MDO would be a partial investor in mining projects, seeking partners locally, regionally, and internationally, but did not elaborate on where the projects would be located or give other details.

Reuters reported that with its state finances strained by low oil prices, Oman is trying to involve the private sector more in major economic development projects. Last week, it had announced a five-year economic plan that is to make heavy use of public-private partnerships, with 52 per cent of total investment to come from the private sector during the period.

source: Technical Review