Energy Ministry, AMC sign memo for phosphate exploration in Al Risha

AMMAN — The Ministry of Energy and Mineral Resources on Monday signed a memorandum of understanding with the Arab Mining Company (AMC) meant to explore phosphate in Al Risha region on the eastern border of the Kingdom, according to a ministry statement. 

The memorandum was signed by Minister of Energy and Mineral Resources Saleh Al Kharabsheh, and the Chairman of the Board of Directors of the Arab Mining Company Mohamed Al Shihi.

Following the signing, Kharabsheh said that the 12-month deal allows the company to explore phosphate deposits in an area covering 305 square kilometres by conducting geological studies and drilling an exploratory well network as part of an exploration programme.

Kharabsheh confirmed that this is the first memorandum of its kind in the eastern region of the Kingdom, and falls within the framework of the national mining programme launched by the Ministry of Energy to revitalise the mining sector with strategic ores and minerals.

The production would not be allowed to be exported in its raw form, but would be utilised in industries to maximise the benefit of this national project, the minister noted. 

The Economic Modernisation Vision identified the mining sector as a sector with high industrial value, the minister said, adding that efforts are underway to triple its contribution to GDP and quadruple export value based on the expected results achieved so far.

The mining sector is given priority at this stage as it supplies the national economy with important added value by establishing downstream chemical and industrial industries in areas where phosphate ore is present. The industry is also expanding employment opportunities to contribute to sustainable development efforts, he added.

Kharabsheh suggested the establishment of a public shareholding company, linked to the project, adding that a portion of its shares could be offered to citizens to maximise the benefit for the country.

Shihi said that the company, after the exploration phase, will establish specialised factories to exploit the raw materials and produce products such as phosphoric acid and other products related to the agricultural sector. 

In December 2021, the Minister of Energy launched phosphate exploration operations in the Risha region, paving the way for an integrated relationship between the Risha gas field and the national phosphate exploration project. The initial results of the exploration for phosphate in the region are “promising”, according to the ministry statement.

The exploration programme, launched by the ministry, covered more than 90 square kilometres where over 55 wells were drilled. The technical report, published in September 2022, revealed the presence of high-quality phosphate with a maximum pentoxide concentration of 36 per cent.

The Amman-based Arab Mining Company was founded in 1975 after a decision of the Council of Arab Economic Unity at the Arab League. The company has thus far participated in 25 extractive, industrial and commercial mining projects across 11 Arab countries.