THE MINERAL INDUSTRY OF OTHER COUNTRIES OF THE NEAR EAST 1219 
 
45' gravity crude from Sahmah, and an estimated 20,000 to 30,000 barrels
per day of 41' to 45' gravity crude from Ramlat were predicted. These were
to flow through a 10inch, 100-kilometer pipeline into the main Marmul-Qarn
Alam line. Oil was to begin flowing in late 1980. 
 In October 1979, the Oman Government awarded a contract to Shell Internationale
Petroleum Maatschappij N.V. of the Netherlands for the construction of Oman's
projected 50,000-barrel-per-day oil refinery. Originally planned for a capacity
of 25,000 barrels per day, the project was upgraded and expected to meet
Oman's domestic requirements and provide a surplus for export. Oman previously
imported petroleum products from Bahrain and the United Arab Emirates at
the rate of 3.5 million barrels per year. 
 Natural gas also began a major role in Oman's economy during 1978-79. In
November 1978, Oman's NGL project, located near Muscat, was inaugurated.
The $87 million project was built by Snam Progetti, and will utilize gas
carried from the Yibal gasfield by a 20-inch, 325-kilometer pipeline. Initial
flow through the pipeline was 60 million cubic feet per day. 
 Yibal gas was also used to fuel the 225megawatt powerplant-desalinization
complex at al-Ghubra. Oman planned to extend the pipeline along the Batinah
coast to Sohar, to be used in the $120 million copper smelting project of
the Oman Mining Co. Also planned was a NGL fractionator to be located onfield
at Yibal. The fractionator was to produce liquid petroleum gas (LPG) for
domestic use. Lean residue gas was to be fed into the al-Ghubra pipeline,
while condensate above propane was to be fed into the crude oilstream, effectively
upgrading heavy crude from elsewhere. Reserves in the Yibal gasfield were
estimated at over 5 trillion cubic feet. 
 Quintana Overseas International (60%) and Gulf (40%) reported a substantial
gas find in the Shams gasfield in northern Oman. Reserves were estimated
at 350 billion cubic feet. Output was expected to be about 50 million cubic
feet per day, and tentative plans were made to pipe the gas to Dubai for
use in the United Arab Emirates' aluminum smelter complex (Dubal). 
 Aside from gas and petroleum, the major mineral activity in Oman was the
Sohar copper mining and smelter complex, located 200 kilometers northeast
of Muscat. The project was a joint venture of the Oman 
Government (75%), Marshall Oman Exploration Co. (12.5%), and Prospection
Ltd. of Canada (12.5%), which together formed the Oman Mining Co. Golder
Moffit and Associates (United Kingdom) was contracted for mining operations;
Kilborne Engineering (Canada) for ore concentration and smelting facilities;
Moneco Overseas (United Kingdom) for power transmission and desalinization;
and Cansult (Canada) for workers' housing. 
 Of nearly 60 copper occurrences, the largest were in the northern Oman mountains,
40 kilometers west of Sohar, at Laseil, Aarja, and Bayda. These occurrences
contained, respectively, 8, 3, and 1 million tons of 2.1% copper ore, mostly
in sulfides. The three deposits were to feed 3,000 tons per day of ore to
the concentrating plant, which was to feed 270 tons per day of copper concentrate
(25% to 28% Cu) to the smelter and refining plant. The project was to start
production in 1982 with an annual output of 20,000 tons of 99.8% copper.
Power for the mine was to be supplied by a new 30megawatt turbine powerstation,
fueled by gas from the Muscat pipeline. The mines expected lifetime was 15
to 20 years. The project was partly financed by a $100 million loan from
Saudi Arabia. Total copper reserves in Oman were estimated at 20 million
tons. 
 In 1978, the Government contracted Dastur Engineering (India) to conduct
a feasibility study for a steel mill to be located in the Rusayl industrial
zone. Initial stages were to involve only a rerolling mill, but production
from local ores was also considered. Production was to be around 100,000
tons per year of steel reinforcing bars. The project cost was estimated at
$40 million. 
 Cement was to be produced by the Oman Cement Co., owned jointly by the Oman
Government (60%) and the Kuwait Cement Co. (40%), in a plant located in the
Barka industrial zone. Plant capacity was to be 1 million tons per year.
Production was scheduled to begin in 1980. Asbestos cement was being produced
in small quantities by Amiantit-Oman, owned by Amiantit of Switzerland and
Bahwan Co. The plant was located in the Rusayl industrial zone. 
 The Petroleum and Mineral Resources Ministry announced in December 1979
the discovery of a significant gypsum deposit in south Oman. The deposit
was capable of supporting a 2,000-ton-per-year mining operation. Other recognized
mineral deposits in Oman included asbestos (8 to 10 million