Saudi Arabia Awards Exploration Licences to Boost Mining Sector Growth

Saudi Arabia’s Ministry of Industry and Mineral Resources has awarded exploration licences for 4,788 km² to various mining companies, including Vedanta and a consortium of Ajlan & Bros and Zijin Mining. This effort aims to expedite resource development valued at SR9.3 trillion and attract $100 billion annually in foreign investment by 2030, supporting the Saudi Vision 2030 for economic diversification.

Saudi Arabia’s Ministry of Industry and Mineral Resources has recently granted exploration licences for a substantial area of 4,788 km², located in the mineral-rich regions of Jabal Sayid and Al-Hajjar, to various local and international mining companies. This initiative forms part of the ministry’s strategic plan aimed at accelerating the exploration and development of the kingdom’s mineral resources, which are assessed to be worth approximately SR9.3 trillion.

Since initiating the process of granting licences to international miners in 2022, the ministry has awarded those licences to prominent organizations, including Indian mining conglomerate Vedanta and a consortium comprising local operator Ajlan & Bros and China’s Zijin Mining, as reported by Reuters. The ministry has projected that the selected miners will invest about SR366 million in exploration activities over the next three years.

The Saudi government has set an ambitious goal of attracting $100 billion in foreign investments annually by the year 2030. This initiative is expected to bolster the national economy and align with the broader objectives of Saudi Vision 2030, which focuses on diversifying the economy and reducing its reliance on fossil fuels.

In January, the Ministry of Industry and Mineral Resources, in collaboration with the Ministry of Investment, launched the second phase of the Mining Exploration Enablement programme. This programme is designed to support exploration activities while alleviating the risks involved in the initial stages of exploration.

Under the Mining Investment Law, the kingdom is providing incentives to encourage further investments. These incentives include provisions for 100% foreign ownership of mining companies and the possibility of securing financing for up to 75% of capital costs through the Saudi Industrial Development Fund.

Earlier this month, the ministry announced the launch of the ninth round of exploration licence competitions for three mineralised areas covering an extensive 24,946 km². This initiative was highlighted during the fourth edition of the Future Minerals Forum in January, where the ministry outlined plans to issue exploration licences for mining sites abundant in gold, copper, and zinc across more than 50,000 km² by 2025.

The licensing competitions are a vital aspect of the ministry’s strategic efforts to achieve its goals within the mining and mineral industries sector. The overarching strategy aims to enhance the utilization of mineral resources and strengthen the role of the mining sector within the national economy. Notably, in December 2024, Saudi Arabia successfully extracted lithium from brine samples taken from the oilfields operated by Aramco.

In conclusion, Saudi Arabia’s recent awarding of exploration licences highlights the kingdom’s commitment to harnessing its mineral resources strategically. By attracting foreign investment and promoting exploration activities, the ministry aims to significantly contribute to the national economy while aligning with the aims of Saudi Vision 2030. The incentives and ongoing programmes established by the government further underscore the importance of the mining sector’s development within the country’s diversification efforts.

Original Source: www.mining-technology.com