Saudi Arabia announces 6 mining opportunities as firms eye $2.5tn mineral wealth

These opportunities are part of the fifth round of mining competitions for exploration licenses and encompass gold, copper, zinc, lead, and silver ores in various regions of the Kingdom, covering a total area of over 940sq km.

Investment opportunities for exploration licenses include the “Al-Halahila” site in the Najran region, estimated to be more than 34sq km in size and containing copper, zinc, and gold minerals.

Saudi mining opportunities

Additionally, the “Jabal Qaran” site in the Najran region, covering an area exceeding 57sq km, contains copper, gold, zinc, silver, and lead deposits.

The Ministry explained that other sites include the “Makman Hijab” in the Riyadh region, covering more than 118sq km and containing gold and silver ore deposits, as well as the “An-Nimas” site in the Asir region, spanning over 222sq km and containing copper, zinc, silver, and gold.

Furthermore, the “Al-Mihah” site in the Makkah region, with an area exceeding 234sq km, includes deposits of copper, zinc, lead, silver, and gold, and the “Al-Hajirah” site in the Asir region, covering an area exceeding 274sq km and containing deposits of silver, copper, zinc, lead, and gold.

The Ministry has set the beginning of May 2024 as the deadline for submitting technical offers to compete for exploration licenses in the proposed sites.

The Ministry has made available the information platform that includes geological and technical data for the sites. The winners are expected to be announced in the bidding stage for the fifth round at the end of June 2024.

The Ministry has designed the competition to facilitate the participation of local and foreign companies with experience in the mining exploration sector.

During the submission stage, the applicant companies’ technical competence and financial capacity will be evaluated, and the sites will be awarded based on the submitted technical work programs, social and environmental impact plans, and investment plans.

Introducing competitions for mining exploration licences is part of the Kingdom’s efforts within the Accelerated Exploration Initiative announced by the Ministry of Industry and Mineral Resources in 2022.

The initiative aims to exploit the Kingdom’s mineral resources and increase the mining sector’s contribution to the gross domestic product, thus strengthening the national economy and creating quality job opportunities for the country’s people.

The Ministry of Industry and Mineral Resources, in cooperation with the Ministry of Investment, launched a new incentive package dedicated to exploration projects.

This was announced on the sidelines of the third edition of the International Mining Conference, held last January in Riyadh.

The incentive package, worth approximately $182m, includes financial facilities for companies and investors wishing to invest in mineral resource exploration activities in the Kingdom.

Last month, the Ministry of Industry and Mineral Resources reported a notable increase in the demand for mining licenses following the implementation, in January 2021, of the new Mining Investment Law, which aims to promote investment in the sector, spur its development, and increase the Kingdom’s mineral production.

According to the ministry, the number of exploitation licences has risen from eight before the law was passed to 19 in 2023, representing a growth rate of 138 per cent.

This surge is attributed to the Kingdom’s plan to make the mining sector a key component of the national industry, thus positioning the country as a reliable global destination for mining activities.

Furthermore, the Kingdom aims to maximise the exploitation of its estimated SR9.4tn ($2.5tn)-worth of mineral wealth.