These companies won the mineral exploration licenses as part of the mining competition round, and within the framework of the accelerated exploration program for untapped mineral resources in the Kingdom.
Saudi Arabia has granted exploration rights to five 11 local and international mining companies to extract minerals in six mining sites across the country.
According to the Saudi Press Agency (SPA), the Ministry of Industry and Mineral Resources in Saudi Arabia announced that the exploration sites are located in the regions of Riyadh, Makkah Al-Mukarramah, and Asir.
These companies won the mineral exploration licenses as part of the mining competition round, and within the framework of the accelerated exploration program for the Kingdom’s untapped mineral wealth.
Mining sector in Saudi Arabia
Saudi Arabia’s mining sector is undergoing a major transformation and is expected to become a key pillar of the country’s economic diversification efforts outlined in Vision 2030.
Saudi Arabia has made mining a priority industry for growth. The ministry has offered a mineral exploration incentive package worth about $182 million to encourage interest from local and international mining operators.
The kingdom has long-term hopes of extracting lithium for electric car plans and uranium that could be used in its peaceful nuclear energy programme.
According to the Saudi Ministry of Industry and Mineral Resources, the round ended with the victory of a national company and 5 alliances comprising 10 local and international companies.
The alliance (INS Exploration Company and Odyssey Metals Limited) won the exploration license at the “Umm Qasr” site in the Riyadh region, which includes gold, silver, lead, and zinc minerals.
The Gold and Minerals Company Limited won the exploration license in the “Wadi Doush” site in the Asir region, which includes deposits of gold, silver, and copper ores.
The alliance of (Okang Company and Barq Al-Samman Mining Company) has obtained an exploration license in the “Shuaib Marqan” site in the Riyadh region, which contains deposits of copper, silver, and gold.
In addition to the alliance (Mettel Bank Limited and Mining Holding Company) winning the exploration license in the “Wadi Al-Juna” site in the Asir region, which includes deposits of copper, zinc, silver, and gold.
The alliance (Rawaked Company and Masharif Company) has obtained an exploration license in the “Hazm Shabat” site in the Asir region, which includes gold deposits.
In addition to the alliance between (Medad Al-Mona Mining Company and Tanka Resources Company) winning the exploration license at the “Huwaimdan” site in the Makkah Al-Mukarramah region, which includes gold deposits.
The number of bids during the round’s competitions reached 44 bids; submitted by 22 local and international companies, including 10 companies participating for the first time, and they were evaluated according to the highest standards that take into account the technical expertise, work programs presented, and social and environmental commitments. The round covered 6 sites, with a total area of 850 square kilometers.
The winning companies pledged to spend 75 million Saudi riyals on exploration work, in addition to 5 million riyals that the companies pledged to spend on developing communities adjacent to mining sites, and contributing to providing job opportunities for the sons and daughters of the nation in less developed areas.
The Kingdom’s abundant mineral wealth, estimated at SAR 9.4 trillion ($2.5 trillion), represents a crucial opportunity to expand non-oil revenue sources alongside the oil and petrochemical industries.
To accelerate exploration and development, the Kingdom has increased its estimated mineral wealth and invested SAR 682.5 million ($182 million) in exploration incentives by the end of 2023.
According to the Saudi Press Agency (SPA), this commitment was reinforced by the Ministry of Industry issuing 152 new industrial licenses and mineral resources in January 2024 alone. The licenses include 20 licenses for non-metallic mineral products, and 19 licenses for activities related to the manufacture of fabricated metal products, excluding machinery and equipment.
According to a report by the National Center for Industrial and Mining Information, the 152 industrial licenses issued since the beginning of 2023 contributed to raising the total number of factories operating and under construction in the Kingdom by the end of January 2024 to 11,672 factories. These factories represent combined investments worth 1.539 trillion Saudi riyals.
The ongoing transformations in the mining sector reflect progress towards achieving the comprehensive sector strategy outlined in Vision 2030, which aims to unlock the full potential of the sector and drive economic and social growth, in line with the Kingdom’s ambitious 2030 goals.
