Min. of Industry, Mineral Resources Announces First Mineralized Belts for Exploration Competition
The Ministry of Industry and Mineral Resources has announced the launch of mineralized belts, spanning an area of 4,788 square kilometers.
This initiative is set to attract competition from both local and international exploration and mining companies. The ministry’s plan includes offering exploration license bids for mining sites within these mineralized belts. The goal is to accelerate the pace of exploration of mineral resources in the Kingdom, which are valued at 9.3 trillion riyals.
Mineralized Belts
The ministry clarified that the mineralized belts offered for competition include three exploration licenses in the Jabal Said belt. It covers an area of 2,892 square kilometers and contains a variety of base metals and precious metals, including copper, zinc, lead, gold, and silver. Additionally, there are two exploration licenses in the Al-Hijjar site located in the Wadi Shuwas belt, covering an area of 1,896 square kilometers. It is rich in a diverse range of precious metals and base metals, including copper, zinc, gold, and silver.
The official spokesperson for the Ministry of Industry and Mineral Resources, Jarrah bin Mohammed Al-Jarrah, stated that offering these sites in large areas is a first in the Kingdom. The initiative aims to attract major international and local mining companies to explore these strategic minerals. The competition for the licenses will follow transparent standards and occur in several stages. It will start with the prequalification phase from July to October 2024, followed by the release of the information memorandum and the call for proposals in December 2024. The winners of the exploration licenses will be announced in January 2025.
Al-Jarrah stated that the ministry has ensured the provision of all relevant geological technical data for the targeted zones on the “Tadeen” electronic platform to guarantee equal opportunities among all competitors. He noted that this step is expected to increase exploration spending in the Kingdom. It will also enrich the national geological database with technical information and create new job opportunities. It also reflects the Kingdom’s commitment to developing the mining sector according to the highest global standards. Moreover, this include environmental sustainability and social responsibility.
Jabal Sayid Belt
Al-Jarrah also noted that the Jabal Sayid Belt region includes the Mahd Al-Dhahab mine. It is the oldest mine in the Kingdom and contains ores of gold, silver, and copper. Additionally, there is the “Jabal Sayid” mine, which is the largest producer of copper ore in the Kingdom. Furthermore, the Al-Hajar site, which includes the “Al-Hajar” gold and copper mine. It is currently an inactive mine, with an annual production of approximately 40,000 ounces of gold.
The Ministry also has launched new incentives for companies with exploration licenses less than five years old. These incentives include financial support of up to 7.5 million riyals to encourage mineral exploration in Saudi Arabia. Additionally, the Mining Investment Law allows 100% foreign-owned companies and financing up to 75% of capital costs through the Industrial Development Fund.
Mining Investments
It is worth mentioning that the Kingdom has achieved the fastest growth in the mining sector globally, according to a report issued by MineHutte in collaboration with Mining Journal.
Moreover, the report shows that the Kingdom has experienced the fastest global growth in creating an attractive environment for mining investments over the past five years (2018-2023).
Saudi Arabia has improved its mining licensing index, now ranking as the second-best country globally. It has also advanced in the financial policies index, placing among the top 10 worldwide. Additionally, the country has made progress in legislative and regulatory frameworks, ranking as one of the best in the world for mining regulations.
Related Topics :
ESNAD Launches a New Strategy, Accelerates Transformation of Saudi Mining Sector
Saudi Industry, Mineral Resources Min Announces 6 Winners in 5th Mining Competition
Mining Sector Accelerates Saudi Arabia’s Bold Economic Vision
