Mining to Jordan

(Last updated: 31 Jul 2007)

Trends and opportunities

The market

Jordan’s mining industry is one of the main contributors to economic growth and a principal generator of national income. It accounts for over five per cent of gross domestic product and 25 per cent of export earnings.

The mining sector in Jordan consists of:

• Minerals extraction industries, confined to non-metallic minerals (industrial rocks) which includes phosphate, potash, salt, calcium carbonates, zeolite and quarrying and mine products.
• Manufacturing industries, which include fertilisers, chemical acids, aluminium fluoride, cement, white cement, rock wool, ceramics, lime, and building materials.

Phosphate rock is mined from overburden in the Shidya mines south of Jordan, while potash is mined from the Dead Sea using evaporative and brine harvesting technologies.

Jordan has only one (small) oil field; Hamza in the east of the country, near the Iraqi border. However, Jordan does have large proven reserves of oil shale, a potential investment opportunity for the extraction and production of crude oil.

The Jordanian National Petroleum Company (NPC) has 50-year concession (starting in 1996) to exploit the Risha area in northeast Jordan and operates the Risha gas field, Jordan’s only commercial natural gas production.

Jordan is subdivided into nine concession exploration blocks/zones. Concession by-laws and the production sharing agreement structure has been revised to further encourage international companies explore oil and gas in Jordan’s nine open concession areas.

In order to maximise the contribution of mining sector to the gross national product, the Jordanian Government adopted policies that boost local value-adding capacity and improve efficiency by privatising the major players in the sector. 

Opportunities

The Jordan Phosphate Mines Company (JPMC) is seeking management and operational contractors and/or joint venture partners as it plans to expand its exploration and mining activities.

The company also plans to implement material handling systems, and process and develop the Upper Horizon area for the (future) expansion of its Eshidiya mine.

The Arab Potash Co (APC) is one of the world's leading producers of potassium chloride/fertiliser and industrial grade potash. Opportunities for Australian suppliers of mining equipment include special anti-corrosive alloys and steels, dredging equipment, and pumps.

Plans are underway for the construction of plants in Jordan to process/produce:

• magnesium oxide
• bromine
• phosphoric acid
• potassium nitrate
• dicalcium phosphate
• magnesium metal

Opportunities will arise from the ongoing process of privatisation in areas such as:

• Optimisation technologies for mining
• Mine management
• Software solutions

Currently, the government is looking for companies to assist in mining/processing copper, gold, silica sand (glass), tripoli, feldspar, gypsum and kaolin. Billions of dollars have been marked for these projects. Some will be financed by the Jordanian Government; others by neighbouring Gulf Cooperation Council countries.

Competitive environment

The major active players in Jordanian mining and fertiliser industry include:

• Jordan Phosphate Mines Company
• Arab Potash Company
• Jordan Cement Factories Company
• Arab Co. for White Cement Industry
• Jordan Carbonate Co
• National Petroleum Co (Risha Gas Concession)
• Jordan Magnesia Company (Jormag)
• Jordan Safi Salt Company
• Kemira Arab Potash Co (Kemapco)
• Jordan Bromine Co
• Nippon Jordan Fertilizer Co
• Indo Jordan Chemicals Co Ltd
• National Resources Authority

The USA is active in the industry, as are Canadian and European Union interests.

Tariffs, regulations and customs

Customs tariffs are based on the Harmonized System coding practice. Commodities mostly fall under one of five different tariff rates: zero; five per cent; 10 per cent; 20 per cent; and 30 per cent.

The exceptions are: tobacco and alcoholic beverages which are subject to a tariff range of 50–180 per cent and unwrought gold which is subject to a 0.5 per cent tariff rate.

In addition to customs duties, both imported products and locally produced goods are subject to a 13 per cent value-added tax. Some imports and locally produced goods (eg. electrical appliances and passenger vehicles) are subject to supplementary sales tax, while others are fully exempt.

The tariff schedule and the general sales tax law may be accessed at the Jordan Customs Department website.

Pre-import clearance is required for certain goods. The clearance, once obtained, acts as an import license. These clearances are not automatic.

All Jordanian and foreign trading companies must either obtain an importer’s card from the Ministry of Industry and Trade for customs clearance purposes, or pay Customs a fee equivalent to five per cent of the value of the imported goods.

Industry standards

International standards are applicable in Jordan and, specifically, British, American and German standards are widely used.

The Jordan Standards & Metrology Institute has further information on measures, technical specifications and ISO 9000 and ISO 14000 certification.

Marketing your products and services

Market entry

Australian companies can deal directly with Jordan’s major companies in the mining and fertiliser industry, however, appointing an agent or distributor is preferable for follow-up and after-sales services.

Jordan acceded to the World Trade Organization (WTO) in April 2000. Jordan signed the EU-Jordan Association Agreement in 2002 that aims to create free trade area through a 12-year transition period. Jordan has signed a free trade agreement with the USA that came into force in December 2001 and aims to eliminate most tariffs with a phased reduction process over 10 years. Jordan is also one of 10 original signatories to the Arab Free Trade Agreement that has undertaken to establish a free trade zone by 2008.

Austrade can assist Australian exporters in understanding the implication of these agreements to entering the Jordanian market.

In the mining sector, marketing must be specific and direct from the Australian client to the potential Jordanian customer. Key marketing tools for Australian suppliers include: presentations and demonstrations; seminars; attending regional exhibitions; and inviting key decision-makers to visit Australia.

E-commerce is not prevalent in the Jordanian mining sector. However, most companies have websites, some of which can facilitate online ordering and purchasing.

Distribution channels

Companies looking to export consumable materials to Jordan must employ the services of an agent.

Joint ventures or partnerships are recommended for large projects.

International engineering/procurement/construction companies are mainly contracted on turnkey projects. 

Jordan places a high emphasis on its mining sector – most of which is government-owned. However, recent years have witnessed the privatisation of Arab Potash Co. to the Canadian potash giant, Potash Corporation of Saskatchewan (PCS). Plans are underway to privatise Jordan Phosphate Mines Company (JPMC). In July 2004 HSBC lead consulting consortium in association with Behre Dolbear & Cowas (as technical advisors) were awarded a contract to advice on JPMC privatisation.

Transport

Most imported products arrive in Jordan by sea freight through Aqaba Port, Jordan’s only access to the sea. Aqaba Ports Corporation is the official body that manages and supervises all port activities.

Only two (non-connecting) sections of the Hejaz railway still operate. One of these sections is from the Ma’an phosphate mines to Aqaba Port. The other section connects Amman (in Jordan) to Damascus (in Syria).

Jordan has well-establish cargo road transport services and, supported by shipping agents and clearing firms, is a traditional supplier of trucking transportation to other countries in the region. The road network consists of 8000 kilometres of surfaced roads. There are two major highways from the north border with Syria to Amman, continuing south to the port of Aqaba and southeast to Saudi Arabia, and upgraded or new highways going east from Amman to Iraq and west towards the West Bank and Israel

Amman’s Queen Alia International Airport is Jordan’s main passenger and air cargo facility. Aqaba Airport (also known as King Hussein International Airport) services international flights and has some air cargo capacity.

Links and industry contacts

Mining-related resources

Natural Resources Authority – www.nra.gov.jo

Arab Potash Company – www.arabpotash.com 
Jordan Phosphate Mines Company – www.jpmc.com.jo
Indo Jordan Chemicals Co – www.indo-jordan-chemicals.com
Jordan Carbonate Co – www.jc.com.jo
Jordan Magnesia Company (Jormag) – www.jormag.com

Government, business and trade resources for Jordan

National Information Centre – www.nic.gov.jo

Ministry of Industry and Trade – www.mit.gov.jo
Ministry of Planning – www.mop.gov.jo

Central Bank of Jordan – www.cbj.gov.jo

Jordan Customs Department – website www.customs.gov.jo

Department of Statistics – www.dos.gov.jo

Jordan Investment – www.jordaninvestment.com

Jordanian Businessmen Association – www.jba.com.jo
Amman Chamber of Industry – www.aci.org.jo

Federal Jordan Chamber of Commerce – www.fjcc.com

Media

The Jordan Times ­– www.jordantimes.com

Australian resources

Australian Embassy
3 Youssef Abu Shahhout
Deir Ghbar
Amman
Tel: (962) 6 5807000
Fax: (962) 6 5807001

Opening hours:
8.00 am to 3.30pm, Sunday to Thursday

Embassy of the Hashemite Kingdom of Jordan
20 Roebuck St
Red Hill ACT 2603
Tel: (02) 6295 9951
Fax: (02) 6239 7236