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Alara Resources surges 57% on news that Oman copper approvals have been received

Public Authority for Mining is proceeding with issuing a mining licence for the Al Hadeetha project.
ASX chart with arrow pointing up
An EPC contract for the copper project is expected to be awarded shortly

Alara Resources Limited (ASX:AUQ) is a leading ASX gainer on notification that eight government approvals for mining at its copper project in Oman have been received.

The Public Authority for Mining in Oman is now in the process of issuing the company subsidiary, Al Hadeetha Resources LLC (AHRL), a mining licence for the Al Hadeetha project.

Shares at 12-month high of 3.3 cents

Alara’s shares surged 57% in early trade to 3.3 cents, a 12-month high.

Although some licensing conditions may still be discussed, Alara says confirmation correspondence gives an indication that no major delays are expected.

The Al Hadeetha project will include a copper concentration plant with annual capacity of 1 million tonnes operating over an initial 10-year mine life.

Ancillary work underway

AHRL is undertaking ancillary work to set up a new core yard and storage facilities near the site.

There have been two EPC bidders shortlisted for the project and the contract will be issued as soon as a final agreement is reached.

Alara is also finalising financing terms based on letters of intent renewed in 2017.

Copper revival in Oman

Al Hadeetha is set to become the next producer of copper concentrate in the Sultanate of Oman, with several other copper projects following closely.

The increased activity reflects the Sultanate’s economic diversification strategy, combined with higher copper prices supported by increased electrification and growing global supply deficits.

The region was one of the biggest producers and exporters of copper for centuries during the Islamic Period.

Alara has a portfolio of projects in Saudi Arabia and Oman.

As well as Al Hadeetha, the company has the Daris and Washihi, Mullaq and Al Ajal exploration licences in Oman and the Khnaiguiyah Zinc-Copper Project in Saudi Arabia.

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