Ukraine war, shipping constraints delay completion of Oman copper project

Ukraine war, shipping constraints delay completion of Oman copper project

Australian mining firm Alara Resources Limited has a 51-per cent stake in the joint venture, while the remaining 49 per cent is owned by Omani investors Al Hadeetha and Tasnim. In 2018, the partnership became the first international joint venture company to be awarded a copper mining licence in the Sultanate of Oman.

In its latest update on the implementation of the project, AHRL listed a number of factors, aggravated by challenges linked to the outbreak of hostilities between Russia and Ukraine, for the revision in the timeframe for the completion of the landmark venture.

“In light of logistical challenges associated with the Ukraine war, constrained shipping availability and delayed project engineering a project schedule review was conducted by the AHRL Project Management Consultant. The review determined that previously reported project completion in November 2022 is no longer achievable. The revised completion date determined by the Schedule Review is April 25, 2023, with mechanical completion of plant to occur by February 25, 2023,” the JV said in a press statement.

Among the factors contributing to the deferred schedule is the “deterioration in the shipping market due to a new Covid lockdown and the Ukraine war, causing low availability of containers and sea transport