Omani mining venture considering Shari’ah-compliant funding

Muscat—Australian mining group Alara Resources said it may look to Islamic finance to fund its joint venture Al Hadeetha copper-gold project in Oman. In a status update issued at the end of May Alara Resources said, “The company is making steady progress towards selection of a major project financing arrangement; this includes consideration of both Shari’ah compliant and conventional banking products. In addition, vendor financing options are also being considered with key suppliers.”
Al Hadeetha Resources is a 70-30 joint venture between Alara Resources and Oman’s Al Hadeetha Investment Services. The JV is working to set up a copper-gold project at Washihi, south-east of Muscat. According to Alara, a feasibility study completed during Q1 2016 concluded financial returns on the ‘Base Case’ of AUD 586.5 million over 10 years on capital expenditure of AUD 66.6 million. The company also reports that the Omani Ministry of Housing and Ministry of Water & Electricity have submitted approvals of the Al Hadeetha Copper project to the Public Authority of Mining.—Agencies

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