22 Jul 2024
RIYADH: Saudi Arabia has unveiled its largest mineralized belts to date, spanning 4,788 sq. km and including five new exploration licenses.
Three of the permits, which were offered to local and global firms, are reserved for the Jabal Sayid site in Madinah.
It covers an area of 2,892 sq. km and entails minerals like gold, silver, copper, zinc, and lead, according to a statement issued by the Ministry of Industry and Mineral Resources.
The remaining two licenses pertain to the Al-Hajjar Site in the Asir region, which encompasses 1,896 sq. km and also includes gold, silver, copper, zinc, and lead.
This initiative aims to accelerate the exploration and development of Saudi Arabia's mineral resources, valued at SR9.3 trillion ($2.4 trillion).
This is in line with Saudi Arabia’s ambition to transform mining into a foundational industrial pillar of the country’s economy. It also aligns with the ministry’s goal to further bolster the sector and contribute to ongoing developments under Saudi Vision 2030.
The statement further outlined the competition stages, which include pre-qualification, release of the information memorandum, proposal evaluation, and announcement of winners.
Jarrah bin Muhammad Al-Jarrah, the official spokesman for the Ministry of Industry and Mineral Resources, noted that offering these sites will attract major international and local mining companies. This initiative is expected to contribute to the energy transition, empower other industrial sectors, and increase exploration spending in the Kingdom.
This initiative is also expected to boost exploration spending in the Kingdom, enrich the national geological database with technical data, create new job opportunities, and foster sustainable economic growth.
According to a report by MineHutte in collaboration with the Mining Journal, the Kingdom has experienced the fastest growth in mining sector investments globally.
The report also revealed that, over the past five years, the Kingdom has led in developing a favorable regulatory and infrastructural environment for mining, and has improved its mining licensing index to become the second-best country worldwide in terms of licensing environment.
Recently, the ministry introduced new incentives in collaboration with the Ministry of Investment, including support for companies with valid exploration licenses for less than five years, with a maximum value of SR7.5 million.