Oman, blessed with rich mineral resources, is rapidly emerging as one of the most promising mining destinations in the Gulf. With vast reserves of copper, limestone, gypsum, chromite, and marble, the country offers attractive opportunities for local and foreign investors interested in the mining sector. However, obtaining a mining license in Oman requires following specific legal procedures set by the Ministry of Energy and Minerals (MEM).
This detailed guide explains how to apply for a mining license, the types of permits available, eligibility criteria, required documents, and the business activities permitted under a mining license in Oman.
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Why Invest in the Mining Sector in Oman
Oman’s government views mining as a key pillar of its diversification plan under Vision 2040, aiming to reduce dependency on oil and boost non-oil revenue. The sector is being modernized through transparent licensing, foreign investor incentives, and infrastructure development.
The country’s strategic location offers easy export routes via ports like Duqm, Sohar, and Salalah, allowing direct access to Asian and African markets. With low corporate tax, no personal income tax, and 100% foreign ownership in most cases, Oman provides an attractive environment for mining investment.
Understanding the Mining License in Oman
A mining license in Oman is an official permit issued by the Ministry of Energy and Minerals (MEM), allowing a company to conduct exploration, extraction, processing, and export of mineral resources within a designated area.
This license defines the boundaries of the mining site, the duration of activity, and the type of minerals allowed to be extracted.
Legal Framework Governing Mining Licenses
The process is governed by Royal Decree No. 19/2019 (Mining Law) and its executive regulations. The law ensures transparency, sustainability, and environmental protection in mining operations, while encouraging private and foreign investment in the sector.
Types of Mining Licenses Available in Oman
The Ministry of Energy and Minerals issues several categories of licenses depending on the nature and scale of the project.
Exploration License
This license allows investors to conduct geological surveys and tests to assess mineral potential. It is usually valid for one to three years and can be renewed upon request.
Mining License (Exploitation License)
Once exploration confirms viable mineral deposits, investors can apply for a mining or exploitation license, granting permission to extract and process minerals commercially. These licenses are generally issued for 20 to 30 years and may be extended.
Mining Concession
For large-scale or strategic mining projects, a mining concession agreement is signed between the investor and the government. It includes detailed rights, obligations, and revenue-sharing models.
Small-Scale Mining Permit
This permit is issued for small projects involving limited mineral extraction, often for local industries like marble cutting or gypsum production.
Eligibility Criteria to Obtain a Mining License in Oman
To apply for a mining license, the applicant must meet the following conditions:
- The company must be registered with the Ministry of Commerce, Industry, and Investment Promotion (MoCIIP).
- The applicant must have sufficient financial and technical capability to carry out mining operations.
- The proposed mining site must not overlap with any restricted or environmentally protected area.
- Foreign investors must obtain prior approval for ownership and operation rights from the Ministry of Energy and Minerals (MEM).
Applicants must also comply with Oman’s environmental regulations set by the Environment Authority (EA).
Business Activities Allowed Under a Mining License in Oman
A mining license in Oman allows companies to perform various operations across the mineral value chain. These activities include:
Exploration and Surveying
Conducting geological mapping, drilling, and testing to identify mineral reserves in specific locations approved by MEM.
Extraction and Processing
Excavation, crushing, and processing of minerals such as limestone, gypsum, copper, and marble within licensed boundaries.
Transportation and Storage
Transporting raw or processed minerals to storage sites, factories, or ports for export under MEM-approved guidelines.
Mineral Trading and Export
Exporting minerals to global markets after obtaining export clearance. This is allowed for companies holding a valid mining or concession license.
Waste Management and Environmental Reclamation
Carrying out land rehabilitation and waste management after project completion to meet Oman’s environmental sustainability standards.
Step-by-Step Process to Get a Mining License in Oman
The process of obtaining a mining license is structured, ensuring compliance with environmental, financial, and technical regulations.
Step 1 – Preliminary Survey and Site Identification
Begin by identifying potential mining locations and conducting initial surveys. Investors may access geological data available through the Public Authority for Mining or MEM databases.
Step 2 – Submit Exploration License Application
File your application through the Invest Easy portal or directly at the Ministry of Energy and Minerals. Attach details about your company, financial capability, technical expertise, and intended area of exploration.
Step 3 – Conduct Exploration Work
Once the exploration license is granted, conduct fieldwork and submit reports on mineral findings. If deposits are commercially viable, you can proceed to apply for a mining (exploitation) license.
Step 4 – Apply for Mining License
Submit your mining license application with the following documents:
- Geological survey reports
- Environmental impact assessment (EIA)
- Financial feasibility study
- Proof of company registration (from MoCIIP)
- Project execution plan
Step 5 – Obtain Environmental Clearance
The Environment Authority (EA) must approve the Environmental Impact Assessment (EIA) before mining operations can begin. This ensures compliance with sustainability and safety standards.
Step 6 – Sign Mining Agreement
For large projects, a concession agreement is signed between the investor and MEM, outlining revenue sharing, obligations, and timelines.
Step 7 – Commence Mining Operations
After receiving final approval, investors can begin extraction, processing, and export activities under ongoing supervision from the Ministry.
Documents Required to Apply for a Mining License in Oman
When applying for a mining or exploration license, the following documents must be submitted:
- Valid commercial registration certificate (CR) from MoCIIP
- Passport copies and ID cards of shareholders
- Geological survey data and exploration reports
- Environmental Impact Assessment (EIA)
- Financial feasibility report
- Map showing the coordinates of the proposed mining site
- Technical expertise documents and equipment list
- Proof of capital or financial capability
All foreign documents must be attested by the Oman Embassy and translated into Arabic by a certified translator.
Cost and Duration of a Mining License in Oman
The cost varies based on the type of mineral and the size of the mining area. Generally:
- Exploration License Fee: OMR 500 – OMR 1,000
- Mining License Fee: OMR 2,000 – OMR 5,000
- Environmental Clearance and Survey Costs: OMR 1,000 – OMR 3,000
The entire licensing process typically takes between 3 to 6 months, depending on document verification and environmental approval.
Regulatory Authorities Involved in the Mining License Process
Several government bodies oversee licensing, compliance, and environmental safety to ensure mining operations in Oman remain lawful and sustainable.
Ministry of Energy and Minerals (MEM)
The primary authority responsible for reviewing applications, granting licenses, and monitoring compliance.
Ministry of Commerce, Industry, and Investment Promotion (MoCIIP)
Handles company registration and ensures that the applicant is legally authorized to operate in Oman.
Environment Authority (EA)
Reviews and approves the Environmental Impact Assessment (EIA) to ensure safe and sustainable mining practices.
Taxation and Royalty on Mining Operations in Oman
All licensed mining companies are subject to Omani tax regulations and royalty payments.
Corporate Tax
Mining companies are taxed at a flat rate of 15% on net profits.
Royalty Fees
A royalty of 10% on the value of extracted minerals is payable to the government.
VAT
A 5% Value Added Tax (VAT) applies to most goods and services related to mining operations.
Benefits of Obtaining a Mining License in Oman
Securing a mining license in Oman grants investors ownership rights, export opportunities, and long-term access to abundant natural mineral resources.
Full Ownership and Repatriation of Profits
Foreign investors can own 100% of their mining operations and freely repatriate profits without restrictions.
Access to Untapped Mineral Reserves
Oman’s diverse geology offers high-potential reserves of minerals like dolomite, copper, and limestone, ideal for export-oriented industries.
Government Incentives
The Omani government offers tax exemptions, low customs duties, and infrastructure support for strategic mining projects.
Sustainable and Transparent Mining Framework
The new mining law promotes responsible extraction practices, ensuring environmental protection and long-term sustainability.
Challenges and Considerations for Mining Investors
While the mining sector is promising, investors must prepare for certain challenges.
Environmental Compliance
Obtaining EIA approval can take time, as authorities ensure all operations meet sustainability standards.
Infrastructure and Logistics
Remote mining sites may require investment in access roads and logistics support, adding to initial costs.
Regulatory Updates
Oman continuously updates its mining and environmental laws, requiring investors to stay informed and compliant.
Conclusion
Obtaining a mining license in Oman is a structured yet rewarding process that opens the door to one of the most profitable sectors in the country. With transparent laws, vast mineral resources, and investor-friendly policies, Oman is positioning itself as a leading mining hub in the GCC.
From exploration to export, following the official process ensures legal compliance, environmental responsibility, and long-term profitability. For investors aiming to expand in this lucrative sector, it’s wise to plan every step with professional guidance and align with Oman’s long-term vision for industrial growth.
To navigate this process smoothly and ensure compliance, investors can seek assistance from professionals specializing in Oman company formation — ensuring your mining venture is structured for success from day one.
FAQs
Who issues mining licenses in Oman?
The Ministry of Energy and Minerals (MEM) is the authority responsible for issuing exploration, mining, and concession licenses.
Can foreign investors apply for a mining license in Oman?
Yes, foreign investors can obtain mining licenses and own 100% of their projects, subject to government approval.
What is the validity period of a mining license in Oman?
Mining licenses are typically valid for 20 to 30 years, while exploration licenses last for 1 to 3 years.
What minerals are available for extraction in Oman?
Oman’s major minerals include limestone, gypsum, copper, chromite, dolomite, and marble.
How long does it take to get a mining license approved?
The process generally takes 3 to 6 months, depending on documentation and environmental clearance.
Are there environmental regulations for mining in Oman?
Yes, an Environmental Impact Assessment (EIA) must be approved by the Environment Authority (EA) before mining begins.
What taxes apply to mining companies in Oman?
A corporate tax rate of 15% and a 10% royalty fee on extracted minerals apply.
What business activities are allowed under a mining license?
Activities include exploration, extraction, processing, storage, transport, export, and land rehabilitation after mining completion.
