Economy, Business And Markets

Scope for Joint Development of Mines With Oman

Scope for Joint Development of Mines With OmanScope for Joint Development of Mines With Oman

There is huge potential for cooperation between Iran and Oman in the mining sector, especially in terms of implementing joint projects and exchanging knowhow, said an Iranian official.

“Even more opportunities will open up after the removal of sanctions against Iran and the full operation of the planned shipping lines between the two countries,” added Abbas Doagouei, managing director of Gate Investment Delta.

Speaking to the Times of Oman, Doagouei, who is also an investment consultant at Golgohar Mining and Industrial Company, said Gate Investment Delta is affiliated to Golgohar Company, which is one of the largest iron ore and iron pellet producers in Iran.

  Golgohar’s Products

“Gate Investment Delta was established in Oman around five years ago. We sell Golgohar’s products like iron ore concentrate, sponge iron and other iron and steel products in Oman and other international markets,” Doagouei said.

The products exported from Iran to Oman are either used in Oman or reexported to other countries, he said on the sidelines of the First Oman Minerals and Mining Exhibition and Conference held recently in Muscat.

“In addition, we source equipment for Golgohar Company from Oman and other countries,” Doagouei said.

Commenting on Golgohar Company, the official said it is located in Kerman Province, about 55 km southwest of Sirjan, which is very rich in mineral deposits, such as coal, copper, gold and, most importantly, iron ore.


Golgohar’s mines contain six ore bodies spread over an area of 40 square kilometers, with an estimated deposit of 1.1 billion tons in total. The major ore body has a deposit of more than 650 million tons.

Doagouei explained that Golgohar Company earns an annual net profit of about $500 million and has around 10 factories processing iron ore and producing iron ore concentrate, pellets and sponge iron, by using modern equipment and machinery.

  Export Services

According to Doagouei, the company uses 700 wagons to transport products from Golgohar to the southern Iranian port of Bandar Abbas, from where the materials are shipped to other countries.

“Around 2 million tons of materials are exported by the company annually,” he said, adding that Golgohar Company has around 3,000 personnel.

The managing director said Gate Investment Delta in Muscat is ready to handle any request for Golgohar’s products.

Doagouei also encouraged Omani and other foreign companies to invest in some of the projects implemented by Golgohar.

  Iranian Projects

“There is a project for steel production in Sirjan, which is worth around $330 million,” he said, adding that foreign investors can also invest in water pipeline projects.

Doagouei explained that another project worth around $660 million involves constructing a pipeline from Bandar Abbas to Golgohar and to Sarcheshmeh in Rafsanjan and then to Yazd.

“We have implemented the first phase of the project for laying a 300-km pipeline and a water desalination plant in Bandar Abbas with a daily output of 200,000 cubic meters is about to become operational,” he said.

“Foreign investors can participate in the construction of the remaining sections of the water pipeline and another desalination plant.”

Doagouei announced that a plan to build a power plant is also on the agenda.

  Oman Plans

Asked about Golgohar’s projects in Oman, he said two years ago, the company had applied for the allocation of land for mineral exploration in Ibra.

“The preliminary agreements were reached but the plan has still not been finalized due to differences of opinion on the size of the area,” he said.

“We have obtained land in Sohar Port and plan to establish a steel factory there, but it can only be set up if the Ibra plan is finalized. If enough deposit is available there, minerals can be transferred to the Sohar plant where iron ore concentrate can be produced.”

  Exchange of Expertise

Doagouei also said Iranian and Omani companies can share their knowledge and experience in the mining sector.

“For instance, at Golgohar, we are keen to offer our expertise to companies in Oman in the fields of exploration, processing and steel production,” he said.

Doagouei noted that 600 engineers specialized in mining and minerals industry are working at Golgohar.