Saudi Arabia starts competition for 5 licences to amplify mineral exploration

RIYADH: Saudi Arabia discloses its greatest mineralized belts to date which are spread across 4,788 square kilometres and include five new exploration licences.

Three of the permits are set aside for the Jabal Sayid location in Madinah and were made available to both domestic and international businesses.  

According to a statement released by the Ministry of Industry and Mineral Resources, it encompasses 2,892 square kilometres and contains minerals such as lead, copper, zinc, gold, and silver.   

The two licences that remain are related to the 1,896 square kilometre Al-Hajjar Site in the Asir region, which is also home to gold, silver, copper, zinc, and lead. 

With a value of SR9.3 trillion ($2.4 trillion), Saudi Arabia's mineral resources will be explored and developed more quickly due to this project.  

This is consistent with Saudi Arabia's goal of making mining the primary industrial pillar of the national economy. It also fits with the ministry's objective to support the industry even further and add to current advancements in line with Saudi Vision 2030.    

The statement went on to outline the phases of the competition, which are pre-qualification, information memorandum release, proposal evaluation, and winner announcement. 

The Ministry of Industry and Mineral Resources' official spokesman, Jarrah bin Muhammad Al-Jarrah, stated that providing these sites will draw significant mining businesses from both domestic and foreign markets. It is anticipated that this endeavour will boost exploration expenditures in the Kingdom, empower other industrial sectors, and aid in the energy transition. 

In addition, increased exploration expenditures in the Kingdom, technical data enrichment of the national geological database, job possibilities, and sustainable economic growth are anticipated outcomes of this project. 

As per a survey published by MineHutte in association with the Mining Journal, the mining sector investments have grown at the fastest pace in the world in the Kingdom.

The survey also showed that the Kingdom has improved its mining licencing index to become the second-best country in the world in terms of licencing environment over the last five years, leading the way in creating a supportive regulatory and infrastructural environment for mining.

Recently, the ministry, along with the Ministry of Investment, unveiled new incentives. These included help for businesses holding exploration licences that are valid for fewer than five years, with a maximum value of SR7.5 million.