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AMMAN — Minister of Energy and Mineral Resources Saleh Kharabsheh on Tuesday signed Jordan’s “first ever” executive agreement for gold ore exploitation with Wadi Araba Mining Company.
The agreement covers a 66-square-kilometre (sq km) area in Wadi Araba, including Abu Khushaiba, Abu Barqa mountains, and Al Buraq. Of this, 48 sq km had previously been allocated to the company for copper exploration, according to a ministry statement.
Kharabsheh said the deal supports the Economic Modernisation Vision by harnessing natural resources, boosting state revenues, and generating jobs.
He stressed that unprocessed ores may not be exported, noting that the developer must refine gold and associated minerals locally to maximise economic returns, adding that project revenues would be tied to international gold prices.
The minister highlighted that Wadi Araba Mining Company, with a paid-up capital of $2 million, had already conducted preliminary studies under a 2022 memorandum of understanding. These studies indicated promising gold and copper mineralisation with potentially viable grades, warranting further exploration, he added.
Under the agreement, the company must provide a performance bond worth 10 per cent of its work programme’s cost and comply with environmental and legal requirements. It is also required to establish a public shareholding company, offering 49 per cent of shares for public subscription, to ensure transparency and community participation, the statement said.
Hani Asmar, Board Member and Director General of Wadi Araba Mining Company, said that operations would begin immediately under a 36-month programme, which includes drilling, laboratory analysis, and geological modelling.
Hisham Ziyoud, director of the ministry’s Geology and Mining Department, said the financial framework links royalties to international gold prices, starting at 3 per cent of gross revenue and rising to 10 per cent.
A windfall tax of up to 50 per cent would apply if post-tax profit margins exceed 40 per cent, in addition to other taxes amounting to roughly 31 per cent of net profit, he added.
Ziyoud stressed the company’s financial and technical capacity to deliver on its commitments, adding that the ministry is finalising agreements on other projects, including rare earth elements, copper in Dana, and phosphate in Rishah.
The Cabinet approved the gold exploitation agreement last week, designating gold a strategic mineral to be exploited under a special concession law.
