Ammon News - The Lower House of Parliament passed a bill on Sunday ratifying the executive agreement for the exploration and exploitation of copper and associated minerals in the Abu Khashiba region of Wadi Araba.

The session, presided over by Speaker Mazen Al-Qadi and attended by Prime Minister Jafar Hassan, marked the final legislative step in a multi-year technical and legal process initiated in 2022. The approval signals the transition of the project from the exploration phase to active production, positioning the Kingdom to tap into its strategic mineral wealth.

Ayman Abu Haniyeh, Chairman of the Parliamentary Energy and Mineral Wealth Committee, confirmed that the project has met all international feasibility and technical standards.

He noted that a specialized local entity, Wadi Araba Metals Company, was established as a legal prerequisite for the executive agreement. Under the terms of the deal and in accordance with Article 117 of the Jordanian Constitution, the agreement only becomes enforceable upon parliamentary ratification.

A key provision of the agreement mandates the transformation of the project entity into a Jordanian public shareholding company before commercial production begins. This structural requirement is designed to ensure transparency, broaden the ownership base, and allow national financial institutions – including the Social Security Investment Fund – to participate in the venture.

The financial architecture of the agreement includes a sliding-scale royalty system ranging from 3 percent to 10 percent of total production, a rate Abu Haniyeh described as consistent with global mining standards.

Unlike net profit models, this royalty is calculated based on gross output. The state’s fiscal take is further bolstered by income tax, mining fees, and a progressive tax system on profits.

Beyond direct revenue, the project is expected to deliver significant indirect economic dividends, including the integration of Jordan into global mining supply chains and the creation of specialized jobs for local labor.

The ratification follows an earlier postponement of the vote last Wednesday to allow for a comprehensive legislative review and broader parliamentary debate on the technicalities of the Abu Khashiba agreement.

The move is a central component of the government's broader economic modernization vision, which seeks to revitalize the natural resources sector. By streamlining investment in mining, Jordan aims to reduce its reliance on traditional revenue streams while stimulating localized industrial growth and regional development in the Wadi Araba area.