Mining to play key role in diversification

Wednesday 30th, December 2015 / 23:52 Written by
Mining to play key role in diversification

MUSCAT: The growing interest in the mining sector will help the Sultanate to diversify sources of national economy.
This was stated by Hilal bin Mohammed al Busaidi, Chairman of the Public Authority for Mining.
He said that the Public Authority for Mining is very serious in activating partnership with individuals regarding the crushers, their ownership, taxes and fees imposed on the crushers.
The chairman said that crushers play an important role in the growth of construction sector and also a source of national income. He added that 70 per cent of the building materials are supplied by crushers, therefore they play a very important role in reducing imports.
More than 75 per cent of the crushers are owned by small and medium enterprises and the remaining is in the hands of the major companies which have invested huge money to ensure mass production.
“The government imposes some fees and taxes on crushers as their yields are used for public interest and as a means to diversify national economy and increase national income.”
Regarding the crushers, the government imposes 10 per cent of the sale revenues for the government which is between 20 to 45 per cent of the company’s profits.
The government also imposes RO 41 for each consignment going through the border point each time. A custom duty of RO 15 is imposed on each truck, in addition to 12 per cent of the income tax and 5 per cent of the profits as contribution to the local community development.
It should be noted that the authority has completed the drafting of the new Mining Law and the organisational charter for the authority. Moreover, the authority has started implementing a number of projects to develop the sector and ensure its efficient management.
The authority has fixed two weigh stations at Al Buraimi border point to collect data on the type of materials exported.
In response to a question on the study on gypsum project in the Governorate of Dhofar, he said that the project comes in response to the demand to utilise gypsum in the governorate and the authority is waiting for the outcome of the study which will decide the best way to utilise the resources.
He said the authority has started identifying new places for different mining activities to offer them through competitive tenders for serious investors.
The future of the sector is very promising. — ONA