Australia-based Alara Resources Limited, a minerals exploration and mining development company, has signed a memorandum of understanding (MoU) with Mining Development Oman (MDO), the sultanate’s new mining investment and development arm, a report said.

The agreement will help Alara Resources with the launch work on its Al Hadeetha Copper Gold project, and also in pursuing other mining initiatives in the country, added the Oman Daily Observer report.

MDO is a new holding company established last year to invest in, among other things, large-scale commercial mining and downstream processing schemes, as well as transport and logistics infrastructure to underpin the growth of this promising sector.

A total of 60 per cent of MDO’s share capital of RO100 million ($259.7 million) is owned by four government entities: the State General Reserve Fund (SGRF), Oman Investment Fund (OIF), Oman Oil Company (OOC) and Oman National Investments Development Company (TANMIA).

The balance 40 per cent is proposed to be offered for public subscription via an Initial Public Offering (IPO) on the Muscat Securities Market (MSM), added the report.