Alara Resources Ltd (ASX:AUQ) has identified local Omani manufacturers as potential buyers of copper from their 70%-owned Al Hadeetha project which hosts the largest JORC copper deposit in Oman.
At a recently attended roundtable discussion, one Omani manufacturer noted they are currently importing 70,000 tonnes per annum of copper rod into Oman.
This highlights the potential for development of downstream beneficiation linkages with the proposed Washihi copper concentrator.
The issuing of the pending mining license is set to be a significant milestone and catalyst for Alara.
The company were advised by the Public Authority for Mining that the next step in expediting environmental clearance is completion of a project review, expected by the end of the week.
Roundtable discussions
Alara were invited to attend a roundtable discussion last week, which was attended by Public Authority for Mining (PAM) executives.
The Ministry of Environment advised that environmental approval should not create a bottleneck.
However, the next step in expediting environmental clearance is completion of a project review by the PAM.
PAM advised they expect the review to be finished this week and will meet with Alara and the Ministry of Environment again once this review process is complete.
Other developments
Following the Mining Investment Middle East and Central Asia Conference recently held in Oman, Alara was invited to deliver a presentation to a mining task force.
CEOs and other senior executives have been brought together as a mining ask force that will report to Diwan of Royal Court on ways to streamline the Sultanate’s approval procedures and advance projects within the mining sector, among other things.
Other developments at Al Hadeetha, including contract negotiations with project management consultants and offtake agreements are advancing well.
Alara is also scheduled to present to the Oman Minerals and Mining Conference in January 2017.
Analysis
Alara’s participation in these meetings and events is focused on advancing the Al Hadeetha Copper Gold project toward production.
The company is doing this in line with the government’s aim to boost the mining sector’s contribution to GDP and employment.
The issuing of a mining license remains a key milestone and value catalyst for Alara.
The company plans to start commercial production of copper concentrate by the first quarter of 2018 subject to the issuance of a mining licence.