Landmark Agreement Set to Unlock Copper Mining in Southern Jordan

SEATTLE (Scrap Monster): Jordan took a major step in revitalizing its mining sector on Sunday as Minister of Energy and Mineral Resources, Saleh Kharabsheh, and Hani Ma'touq Asmar, General Manager of Wadi Araba for Minerals, signed the country's first executive agreement for copper exploitation.

"Work will commence early, and we will establish a specialized processing plant for copper products," affirmed Al-Asmar, the company's General Manager. He praised the government's focus on the mining sector and pledged to operate within the agreement's timelines.

Under the terms of the deal, Wadi Araba for Minerals will be structured as a Jordanian public shareholding company and is required to offer at least 49% of its shares to the public via an IPO.

The agreement's execution is contingent on the company providing a performance bond and the Jordanian Parliament passing a special law to formalize the concession rights.

Hisham Al-Zayoud, the ministry's Director of Geology and Mining, clarified the financial model. The government will receive a sliding-scale royalty of no less than 3% of gross revenue, which increases as global copper prices rise.

Additionally, the state will collect all standard taxes, estimated at 31% of the company's net profit.

This agreement is part of a broader push by the ministry, which is currently negotiating deals for gold and rare earth elements in the same region, copper in Dana, and phosphate in the Risha area with various local and international partners.

Courtesy: www.msn.com