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AMMAN — Jordan has signed its first executive agreement to develop copper reserves in the Abu Khushaibeh region of Wadi Araba, marking a major step in the Kingdom’s push to revitalize its mining sector.
Minister of Energy and Mineral Resources Saleh Kharabsheh on Sunday inked the 30-year agreement with Wadi Araba Minerals Company Director General and Board Member Hani Al Asmar. The deal grants the company exclusive rights to mine copper over a 48-square-kilometre area south of the Dead Sea, according to a statement from the ministry.
Kharabsheh described the agreement as a “significant step” toward strengthening Jordan’s mining industry, aligning with Royal directives and the objectives of the national economic modernization vision.
“This deal aims to unlock Jordan’s natural resource potential, support economic growth, and create job opportunities for Jordanians,” the minister said.
Preliminary feasibility studies conducted under a 2022 memorandum of understanding estimate the region holds between 20 and 30 million tonnes of copper ore at commercially viable grades. Additional copper reserves in surrounding igneous rock formations are currently under study.
Kharabsheh emphasised that the agreement prohibits the export or sale of unprocessed copper. The company is required to refine all extracted materials to a specified purity level before sale or export, a provision designed to maximize value for the national economy, he said, adding that the government revenues from the project will be linked to global copper prices.
Asmar confirmed that preparations are already underway to establish a manufacturing facility for copper products at the site.
Under the terms of the agreement, the company must float at least 49 per cent of its shares to the public, retaining no more than 51 per cent. It is also obligated to meet licensing, insurance, and land lease requirements and to provide financial guarantees.
Hisham Zyoud, director of the ministry’s Geology and Mining Directorate, noted that the agreement includes a flexible financial model. Royalty payments will begin at a minimum of 3 per cent of total revenue before expenses and will increase in line with rising global copper prices. Additionally, the government will collect taxes amounting to 31 per cent of net profits.
Zyoud also revealed that the ministry is currently negotiating further agreements for the mining of gold and rare earth elements in Abu Khushaibeh with the New Environmental Company, copper in Dana with Al Motakameleh Company, and phosphate in Risheh with both the Arab Mining Company and Oman’s Tasneem Company.