23 Oct 2024
RIYADH: Saudi Arabia has invited local and international investors to compete for seven mining exploration licenses across the Makkah and Riyadh regions, covering a combined area of 1,070 sq. km.
The exploration licenses cover sites rich in valuable minerals such as gold, copper, zinc, lead, and silver. Four of the sites are located in the Makkah region, including Wadi Al-Lith, which spans 243 sq. km and holds deposits of copper, zinc, and gold.
Jabal Baydan, a 244-sq-km site, holds deposits of copper, gold, zinc, silver, and lead. Umm Ajlan, spanning 78 sq. km, contains copper, lead, and gold, while Jabal Al-Daamah, covering 210 sq. km, holds silver, lead, and zinc deposits.
The Ministry of Industry and Mineral Resources launched the initiative as part of its ongoing efforts to accelerate the exploration and development of the Kingdom’s $2.5 trillion mineral reserves. This move aligns with the Kingdom’s Vision 2030 goal to establish the mining sector as the third pillar of the economy.
In the Riyadh region, three additional sites are open for exploration, including Jabal Al-Khullah — North, spanning over 98 sq. km with deposits of zinc, silver, and lead; Jabal Al-Khullah — South, a 19-sq-km site containing zinc, lead, and silver; and Jabal Sabha, covering 171 sq. km, which holds silver, lead, zinc, and cobalt deposits.
The ministry said that the submission period for technical offers began in mid-October and will remain open until mid-November. The winners of the seventh round of exploration licenses are expected to be announced in December.
As part of the bidding process, 70 percent of the evaluation will focus on the work program and technical capabilities of the competitors, while 30 percent will be based on community contributions and innovation support activities.
This is in line with the ministry’s commitment to governance, transparency, sustainability, and environmental and social responsibility.
To support the bidding process, the ministry has made available a data platform containing detailed geological and technical information about the sites. Interested parties are encouraged to visit the Ta’adeen platform to review the competition procedures and access all technical reports.
In partnership with the Ministry of Investment, Saudi Arabia has also launched a program to incentivize mineral exploration.
The program offers a set of incentives to reduce risks for mining companies in the early stages of their projects, in addition to the benefits provided by the Mining Investment Law.
These include allowing 100 percent foreign ownership of exploration companies and access to financing that covers up to 75 percent of capital costs, further enhancing Saudi Arabia’s attractiveness as a destination for mining investments.