Amman, Dec. 22 (Petra) – The Ministry of Energy and Mineral Resources highlighted a copper mining project in the Abu Khashiba area south of Jordan, following a parliamentary committee meeting on a draft law ratifying the executive agreement governing copper and associated minerals, with the committee deciding to continue studying the draft and consulting relevant authorities before submitting its recommendation.

The ministry said the copper mining project began with the signing of a memorandum of understanding between the government and Turkish Solvest Trade and Industry Limited Company in 2022.

In a statement issued Monday, the ministry explained that the company submitted the required technical and financial documentation, which was reviewed and evaluated in accordance with Regulation No. 76 of 2020 on petroleum, oil shale, coal, and strategic minerals exploitation and its amendments, issued under the Natural Resources Law No. 19 of 2018. The company was subsequently deemed qualified to sign the memorandum. The project covers an area of 48 square kilometers, and all legally mandated financial guarantees were provided.

During the term of the memorandum, the company implemented exploration and prospecting programs and submitted a preliminary economic feasibility study. Based on its findings, a specialized international consulting firm was commissioned to estimate copper reserves in line with international best practices and the Joint Ore Reserves Committee (JORC) standards, a professional code of practice that sets minimum standards for Public Reporting of minerals Exploration Results, Mineral Resources and Ore Reserves.

Following the study results, the company opted to move to the implementation phase and established a Jordanian entity, Wadi Araba Minerals Company, for the purpose of signing an executive agreement. The ministry signed the agreement on behalf of the government and referred to the National Assembly for ratification through a special law, in accordance with Article 117 of the Constitution and applicable legislative procedures.

Regarding the legal status of the developer, the ministry said Wadi Araba Minerals Company was registered with the Companies Control Department on April 3, 2025, with fully paid-up capital of JD1.428 million. Its registered objectives include non-ferrous metal exploration and mining, as well as technical services related to the mining and energy sectors, granting it full legal capacity under the Companies Law.

The ministry clarified that the standard direct sponsor agreement attached to the executive agreement regulates potential relationships with financial or technical sponsors, subject to government approval. It added that the developer has not sought to engage a direct sponsor, as the project will be self-financed, noting that the provision was included for potential future use.

Under the executive agreement, the developer is required to pay a royalty linked to global copper prices, ranging from 3 percent to 10 percent of total revenue. In addition, a progressive windfall profits tax of up to 50 percent will apply if post-tax profit margins exceed 40 percent. All other taxes, including income tax and national contributions, will be collected in accordance with prevailing legislation, with exemptions limited to those stipulated under the Investment Environment Law.

The agreement also obliges the developer to pay land rental fees under lease contracts signed with the competent government authority. Jordanian law governs the agreement, while dispute resolution will be conducted through arbitration in Arabic under Jordanian legislation, with proceedings held at the International Chamber of Commerce in Paris.

The ministry noted that the company has prepared an initial environmental impact assessment and will submit a comprehensive study during the pre-exploitation phase for approval by the Ministry of Environment. The developer is further required to provide a rehabilitation guarantee to ensure the restoration of the mining area upon completion of operations, with non-compliance constituting a material breach of the agreement.

//Petra// AJ