AMMAN — The Ministry of Energy and Mineral Resources on Monday said that the copper mining project began in 2022 following the signing of a memorandum of understanding (MoU) between the government and Turkey-based Solveste Investment Solutions.

 

The ministry said in a statement that Solvestehad submitted the required technical and financial documents, which were reviewed and approved in accordance with the Petroleum, Oil Shale, Coal and Strategic Minerals Projects Regulation of 2020, and the Natural Resources Law of 2018.

 

The approval qualified the company to sign the MoU, the statement, carried by the Jordan News Agency, Petra, said.

 

The project covers an area of 48 square kilometres, with the company providing all required financial guarantees under applicable legislation, the ministry said.

 

During the MoU period, the ministry said that Solveste conducted exploration and drilling activities and submitted a preliminary economic feasibility study. The company later appointed a specialised consultancy to estimate copper reserves in line with international standards and the JORC Code.

 

Based on these results, Solveste proceeded to the next phase by signing an executive agreement and establishing a Jordanian company, WadiAraba Minerals, to formalise the project.

 

The executive agreement, signed by the ministry on behalf of the government, requires ratification through a special law under Article 117 of the Constitution. A draft ratification law has been submitted to Parliament in accordance with standard procedures, the statement said.

 

The statement said that WadiAraba Minerals was registered with the Companies Control Department on April 3, 2025, under national number 200204744, with a fully paid capital of JD1.428 million.

 

The company’s objectives include non-ferrous mineral mining and exploration, as well as technical support services for the mining and energy sectors, granting it full legal capacity to contract under Jordanian law.

 

The ministry said that the executive agreement includes a “direct sponsor” provision that regulates potential financial or technical support, subject to government approval.

 

However, it said, WadiAraba Minerals has not applied for a sponsor and will finance all operations independently.

 

Under the agreement, the company is required to pay royalties on copper production ranging from 3 per cent to 10 per cent of total revenues, depending on global copper prices.

 

The agreement also stipulates a progressive tax of up to 50 per cent on unexpected profits exceeding a 40 per cent post-tax margin, in line with international mining practices. The government will additionally collect all applicable taxes, including income tax and national contributions, while investment-related exemptions will apply in accordance with the Investment Environment Law, according to the statement.

 

The developer is also required to pay land lease fees for exploitation areas, as stipulated in the lease agreement with the relevant government authority.

 

The executive agreement specifies that Jordanian law will govern the project and that arbitration proceedings will be conducted in Arabic under Jordanian legislation. While arbitration will be administered through the International Chamber of Commerce in Paris, hearings may be held in other locations by mutual consent.

 

According to the ministry, the company has prepared an initial environmental study to assess potential impacts. Before mining activities begin, WadiAraba Minerals must submit a comprehensive environmental impact assessment for approval by the Ministry of Environment. The developer is required to comply with all environmental laws, and any violations will be subject to enforcement measures.

 

The agreement also requires the company to provide a rehabilitation guarantee covering post-mining restoration activities, as stipulated in the licence issued by the Energy and Minerals Regulatory Commission. Failure to meet these obligations would constitute a material breach of the agreement, the ministry said.