Saudi Arabia has invited bids from international and local companies for the pre-qualification stage of the licensing for five exploration sites in the country.
The Saudi Ministry of Industry and Mineral Resources (MIM) said local and international mining companies could participate in the licensing round to obtain exploration licenses.
Saudi Arabia’s mineral resources
Muhaddad site covering 138.69 sq kilometers and includes copper, zinc, lead and gold located in the Asir region, Ar Radainiyah site covers 75.86 sq kilometers and includes zinc, located in the Riyadh region, Umm Hadid site covers 246.35 sq kilometers and includes copper, zinc, lead and silver, located in the Riyadh region, Bir Umq site covers 187.37 sq kilometers and includes copper and zinc, located in the Al Madinah region and Jabal Sahabiyah site covers 283.81 sq kilometers and includes copper, zinc, and lead, located in the Asir region are the sites put for exploration bids.
The licensing round for the five sites will be done in two stages: the qualification stage and the proposal stage when the qualified bidders are invited to submit their best work programme and social and environmental impact management plans.
The ministry is planning to conclude the licensing rounds for the five sites by the third quarter of 2023.
The data rooms of the five sites are now available and include all historical work conducted on the site and a pre-feasibility study, the ministry said.
Saudi Arabia has been of late taking several measures, including switching over to international bidding routes, to attract foreign companies to develop its mining sector.
Following the launch of the licensing round for the first exploration license issued through a competitive bidding process in the kingdom in January 2022, the kingdom has successfully awarded the license for the Khnaiguiyah exploration site and announced the preferred bidder for the Umm Ad Damar site in Q4 2022.
The ministry said the success of the first two licensing rounds represents ‘proof points’ for the mining sectors transformation efforts.
The kingdom offers several incentives, including financial incentives such as co-funding up to 75 percent of capital expenses through the Saudi Industrial Development Fund (SIDF), a five-year royalty holiday for miners and royalty discounts for downstream projects to attract investors qualified to deliver value for the mining sector and the entire value chain.
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