Amman, Sept. 9 (Petra)-- Minister of Energy and Mineral Resources Saleh Kharabsheh and Director General of Wadi Araba Minerals Company Hani Asmar on Tuesday signed the first executive agreement to exploit gold ores in southern Jordan.

The project covers an area of 66 square kilometers in Abu Khushaybah, Jabal Abu Barqah, and Al-Buraq, of which 48 square kilometers were previously contracted with the company for copper exploration.

Kharabsheh said the agreement supports the Economic Modernization Vision by utilizing mineral resources to boost national economic returns and create job opportunities for Jordanians.

He noted that Wadi Araba Minerals, with a paid-up capital of $2 million, had completed initial technical studies under a 2022 memorandum of understanding, which revealed encouraging multi-metal indicators including gold and copper in volcanic and sedimentary rocks. Further studies will be carried out in subsequent phases.

The minister stressed that the agreement prohibits selling or exporting unprocessed ores and obliges the developer to refine metals to a specified purity level before sale or export, maximizing benefits to the national economy. He added that revenues will be linked to global gold prices.

The company is required to provide a performance bond equal to 10 percent of the work program’s cost, comply with environmental and legal requirements, and proceed with the legal process to issue a special concession law to be approved by Parliament, as it is registered as a Jordanian public shareholding company.

The agreement also obliges the company to implement all works to the highest environmental and technical standards, contribute to job creation for Jordanians, and establish a public shareholding company offering 49 percent of its shares for public subscription to ensure transparency and community participation in investment returns.

Asmar confirmed that the company will commence operations promptly under a 36-month schedule divided into two phases covering drilling, laboratory analysis, and geological modeling, in adherence to technical and environmental standards.

Director of the Geology and Mining Department at the ministry, Hisham Zyoud, said the financial system links royalty rates to gold prices on the London Bullion Market Association (LBMA), ranging from a minimum of 3 percent to 10 percent of gross revenues. A windfall profit tax of up to 50 percent will be imposed if net post-tax profits exceed 40 percent, in addition to other taxes amounting to about 31 percent of net profit.

He added that the company is financially and technically qualified under ministry regulations to ensure compliance with its obligations.

Zyoud noted that negotiation committees are finalizing additional executive agreements for other mineral resources, including rare earth elements with the New Environmental Company, copper mining in Dana with Al-Mutakamelah Company, and two phosphate mining agreements in Risha with Arab Mining and Oman’s Al Tasnim.

The Cabinet had approved the executive agreement with Wadi Araba Minerals in its session last Wednesday, considering gold a strategic mineral to be exploited under a special concession law in line with current legislation.

//Petra// AO