Saudi Arabia’s Mining Sector Set for Expansion with New Exploration Program
RIYADH: The Saudi mineral sector is on the brink of a major expansion with the launch of the Mining Exploration Enablement Program, inviting global firms and explorers to take part in this groundbreaking initiative.
The Ministry of Industry and Mineral Resources, together with the Ministry of Investment, have issued invitations to international companies in the sector to register for the program, as stated in an official announcement.
The primary goal of the program is to ramp up exploration activities, maximize the value derived from the mining sector, and broaden the Kingdom’s survey potential by focusing on unexplored territories.
In addition, it aims to nurture local talent, enhance skills and capabilities in the country’s mineral exploration field, and advance geological knowledge by offering innovative data that meets international standards, ultimately creating investment opportunities.
This initiative is in line with Saudi Arabia’s commitment to enhancing and developing the mining sector, with the aim of making it the third pillar of national industries as part of Vision 2030 objectives.
Moreover, the Ministry of Industry has specified that participation in the project requires meeting certain criteria, including a focus on exploring strategic minerals categorized under Category A in the mining investment system. These minerals encompass copper, lithium, nickel, gold, and iron.
Efforts to discover these minerals should prioritize previously unexplored areas. Companies must obtain a valid exploration license within the first five years of the permit’s term, demonstrate a successful track record in exploring new sites, and actively engage local service providers to stimulate investment and promote growth within the local supply chain.
Interested investors have until May 31 to submit their applications, with the winners set to be announced by the end of July 2024.
In a bid to support mining discovery in the Kingdom, the ministry launched an incentive package worth close to SR685 million ($182 million) in financial facilitation in March. This initiative, developed in partnership with the Ministry of Investment, aims to reduce risks for exploration companies in their initial stages and attract funding to the sector, aligning with Vision 2030 goals.
The comprehensive financial support package is expected to aid companies and investors looking to venture into mineral resource exploration within the region, as highlighted by the ministry.
Given that Saudi Arabia’s mineral wealth is estimated at SR9.4 trillion, the Kingdom is striving to establish mining as a fundamental industrial pillar.