Explorations

During 2005, National Mining Company (NMC) achieved several milestones while continuing the implementation of its development plan for the mining as well as process plant.

On the Mining front, orders were placed with Caterpillar for the supply of a mining fleet, including 365 excavators, 771D trucks, D8R dozers and a 140H grader. The equipment arrived on site and earthwork has commenced. Topographical survey of the mine area has been completed with new total stations purchased recently. Designs for the wadi bund are underway and offices have been established at Hatta site.

The drilling and blasting contract has been awarded to a local subcontractor and negotiations were made for contracts to haul the ore to the plant and fuel supply for the mining fleet. Expert consultants have been employed and training of Omani employees for mining equipment has been in progress at the mine site.

The refurbishment of the processing plant was also in full swing. The concentrate dryer has been refurbished and was utilised to dry concentrate for Oman Mining Company (OMCO)’s smelter. The majority of components in the plant have been stripped and inspected, with plans developed to recondition all components. Most of the engineering contracts have been awarded to complete the refurbishment work at the plant. The design of the tailings management facility was begun and the plant is expected to be commissioned by the third quarter of 2006.

Further exploration drilling was carried out in the Hatta, Shinas and Semdah regions and significant intersections were found at good thickness and grade. New geological models will be created in 2006. The recourses and reserves will be updated then.

The exploration license for Ghuzayn was granted to NMC in 2005. This area shows indication of containing sizeable resources. Further geophysical exploration and drilling will be carried out in all regions in 2006.

The NMC workforce was approximately 300, out of which 80% are Omanis. The recruitment of new staff continued. With the completion of recruitment and training of operators for both the mine and plant, the level of Omanisation is expected to go up in 2008.

Following non acceptance of Ministry of Environmental and Water Resources (MEWR) for the use of Aarja pit for tailing disposal, NMC in consultation with the Ministry has identified an alternate location for tailing storage facility (TSF). The survey work has been completed and detailed design work for the construction of TSF continued which will be submitted to the MEWR for approval. However this change in the location has resulted in time and cost overrun to NMC. Other than the tailing disposal, NMC has been granted an approval in principle by MEWR to commence all operations and activities including mining.

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