Al Fajar Al Alamia signs major shareholders agreement

Al Fajar Al Alamia Group, which is engaged in the manufacture of industrial explosives, drilling and blasting, earthworks and mining, participated in the three-day Oman Mining Expo held recently at the Oman Convention and Exhibition Centre.

On the second day of Oman Mining Expo, Al Fajar Al Alamia participated in the signing ceremony of shareholders for the joint development of a new gabbro concession in Liwa in North Al Batinah Governorate.

On the occasion, Minerals Development Oman (MDO), the Sultanate’s mining investment flagship, signed a shareholders’ agreement with Al Fajar Al Alamia and Assarain Enterprise for the joint development of Liwa gabbro resources. The agreement was signed in the presence of Eng. Hilal Al Busaidy, CEO of the Public Authority for Mining (PAM).

While Al Fajar Al Alamia will participate as shareholder in the initiative with a 30 per cent stake, MDO will have 40 per cent stake and Assarain Enterprise will have 30 per cent.

A mining licence for the development of the resource for the Liwa Gabbro Project covering an area of about two sq km in the Wilayat of Liwa was awarded to MDO by the Public Authority for Mining (PAM) in February 2019. After holding several discussions and negotiation with gabbro industry companies, MDO selected Al Fajar Al Alamia and Assarain Enterprise to develop the project.

The mineable resources at the site is estimated to be at 211 million tonnes with a projected production capacity of five million tonnes per annum. Al Fajar Al Alamia will off-take 2.4 million tonnes in the first two years, and 300,000 tonnes per annum for three to five years.

A spokesperson for Al Fajar Al Alamia said, “For the last 40 years we have been a leader in industrial explosives, drilling and blasting services in Oman. We have continuously strived to deliver optimum solutions to meet our customers’ needs for quarrying, infrastructural projects, tunnelling projects, underwater blasting among others. Recently, to widen our repertoire, we decided to enter into the mining industry and now hope to tap the potential of Oman’s mining sector.”

“We are thankful to MDO for giving us an opportunity to be part of the development of new gabbro concession in Liwa,” he added.

Over 100 companies from 15 countries participated in the Oman Mining Expo, organised by the Public Authority for Mining (PAM), considered a pioneering industry event. Al Fajar Al Alamia, which recently made a foray into the mining sector, showcased a range of related products, technologies and services.

Al Fajar Al Alamia recently celebrated the 40th anniversary of its existence. Founded in 1979, Al Fajar Al Alamia previously known as Hajar Explosives Trading Co., is an Omani company with worldwide connections.

The company has come a long way to take the prominent position of the premium industrial explosives dealer and drilling and blasting operator in the Sultanate of Oman. Al Fajar Al Alamia offered shares to the public via the Muscat Securities Market in 1997. The company has established explosives plants and storage facilities at strategic locations across the Sultanate. It owns and operates in excess of 70 rock drilling rigs.

As part of the forward integration plan, it acquired four rock drilling and blasting companies between 2010 and 2013, three in the Sultanate and one in the UAE.

Recently, to widen its range, the company decided to enter the mining industry and rock quarrying business. In addition to rock products, it is also looking at expanding into mining of other minerals, such as gypsum, limestone among others. Apart from catering to domestic markets, it is planning to sell to international markets.

Al Fajar Al Alamia is in the process of setting up an industrial explosive’s factory and storage facilities in the Emirate of Fujairah in the UAE in association with Fujairah Holding. This is expected to be commissioned in the second half of 2019.

The company is enhancing its capacities in Oman to meet the growing market share and establishing new businesses abroad in countries such as the UAE, African countries and others.