Kazakh miner signs first overseas venture in Oman

08/07/2026 04:48 AST

Minerals Development Oman (MDO) has signed a partnership agreement with Kazakhstan-based Solidcore Resources that will see the mining company acquire up to a 60% stake in a copper-gold project in North Batinah through a phased investment programme linked to exploration and development milestones.

The joint venture centres on the Khabiyat project, located about 29km from Suhar within MDO's concession area 11B. The agreement marks Solidcore's first exploration venture outside Kazakhstan and reflects Oman's efforts to attract international investment into its mining sector.

MDO said years of exploration at the site, including drilling, geological and geochemical studies, aerial and ground geophysical surveys, and satellite image analysis, have confirmed the project's mineral potential.

Under the agreement, Solidcore will acquire its stake through a three-stage earn-in mechanism tied to technical and investment targets.

In the first stage, the company will acquire a 20% interest by contributing US$8mn to the joint venture to fund exploration activities over a period of up to two years, together with an initial payment of US$0.5mn to MDO. Upon completion of the first phase, it will make an additional payment of US$1.5mn to MDO.

Subject to the successful completion of the initial programme, Solidcore may increase its stake by a further 25% through a US$20mn investment to finance additional exploration and prepare a JORC-compliant Mineral Resource Estimate. If it proceeds to the third stage, the company will make another payment of US$1.5mn to MDO.

The final stage would allow Solidcore to increase its holding to 60%. The purchase price will be determined based on the project's contained copper-equivalent mineral resources and the average trading multiples of a selected peer group. Subsequent project development will be funded by both partners in proportion to their respective shareholdings.

Vitaly Nesis, CEO, Solidcore Resources, said the partnership supports the company's strategy of disciplined growth and geographic diversification.

"We are pleased to partner with MDO on this joint venture, which marks our first exploration venture outside Kazakhstan. The Khabiyat project represents an important entry point for our further expansion in the region and has the potential to become a major mining and processing hub in Oman," Nesis said.

Mattar Al Badi, CEO, Minerals Development Oman, said the partnership would combine Solidcore's international mining expertise with MDO's local knowledge to unlock the project's potential.

"We believe our joint venture will help unlock the project's potential while supporting the development of Oman's mining sector through the application of international best practices, technical know-how and operational excellence," Al Badi said.

The agreement comes as Oman seeks to expand its mining industry as a key pillar of economic diversification under Oman Vision 2040, with copper identified as one of the country's priority minerals for future development.

Muscat Daily