In a landmark move for Jordan’s mining sector, Minister of Energy and Mineral Resources Dr. Saleh Al-Kharabsheh and Hani Ma’touq Al-Asmar, Director General and Board Member of Wadi Araba Minerals Company, signed Jordan’s first executive agreement for the exploitation of copper ore on Sunday.
اضافة اعلان
The agreement grants the company rights to mine 48 square kilometers in the Abu Khushaibeh area of Wadi Araba, south of the Dead Sea, for a 30-year period.
Key Highlights of the Agreement:
Strategic Significance:
Dr. Al-Kharabsheh emphasized that the project aligns with Jordan’s Royal Vision and the Economic Modernization Vision, aiming to boost the mining sector, enhance economic growth, and create jobs.
Estimated Copper Reserves:
Preliminary feasibility studies show an estimated 20–30 million tons of copper ore in the region, with economically viable concentration levels. The ministry plans to continue studying reserves in igneous rock formations in the area.
Local Processing Requirement:
The agreement prohibits the export or sale of raw copper ore, requiring the company to process extracted materials locally to a specified purity level before any sale or distribution—maximizing local economic benefit.
Revenue Sharing & Royalties:
A minimum royalty of 3% on gross revenue is set, increasing with global copper prices. Jordan will also collect 31% in taxes from net profits, in accordance with national regulations.
Public Offering Requirement:
The company must offer at least 49% of its shares for public subscription while retaining up to 51%. It must also comply with environmental and legal standards for public shareholding companies in Jordan.
Implementation Commitments:
Wadi Araba Minerals has pledged to begin work promptly, including constructing a specialized copper product manufacturing facility. The company must also submit a performance bond and proceed with legislative procedures for the required mining concession law.
Broader Mining Sector Developments:
Dr. Hisham Al-Zayoud, Director of Geology and Mining at the Ministry, stated that the ministry is also finalizing:
Executive agreements for gold mining in Abu Khushaibeh and rare earth elements with New Environmental Company.
Copper mining in Dana with Integrated Company.
Two agreements for phosphate mining in Risha with Arab Mining Company and Tasnīm Company of Oman.
The Council of Ministers had approved the copper mining agreement in its session last Wednesday, recognizing copper as a strategic mineral under special mining concession legislation.
The signing ceremony was attended by Secretary General Eng. Amani Al-Azzam, ministry technical committee members, and the technical team from Wadi Araba Minerals Company.
