Saudi Arabia’s Mining Sector Soars with 138% Increase in Exploitation Licenses
Saudi Arabia’s mining sector is experiencing a remarkable upswing, with a 138 percent surge in the issuance of exploitation licenses since the enforcement of the new Mining Investment Law in 2021.
Strategic Growth in Mineral Production and Investment
The number of permits has escalated from eight in 2021 to 19 last year, showcasing the Saudi Ministry of Industry and Mineral Resources’ active endeavors to enhance mineral production and investment.
Transforming Mining into a Foundational Industrial Pillar
The strategic shift is a part of the Kingdom’s initiatives to evolve mining into a fundamental industrial pillar. Saudi Arabia’s mineral wealth is estimated at a staggering SR9.4 trillion ($2.4 trillion), as per a press release from the ministry.
Surge in Quarry and Exploration Licenses
Data indicates a significant increase in building materials quarry licenses, surging from 158 in 2021 to 538 in 2023, and a leap in exploration licenses from 58 to 259 during the same period. These increments of 241 percent and 347 percent, respectively, are driven by strategic initiatives like the Accelerated Exploration Program initiative and more streamlined licensing procedures.
International Collaborations and Innovations
Saudi Arabia’s mining sector is making notable progress both locally and internationally. In January, the Royal Commission for Jubail and Yanbu partnered with Brazilian mining company Vale to develop an iron ore briquettes project in the Kingdom. This collaboration was announced during the two-day Future Minerals Forum, where Vale unveiled its plans for the Middle East.
Vale’s Vision for Sustainable Mining in the Kingdom
The agreement with Vale signifies a significant milestone in the company’s venture in the region, highlighting the forthcoming state-of-the-art project in the Kingdom as a vital component of its strategy to decarbonize the steelmaking industry. Vale’s CEO, Eduardo Bartolomeo, emphasized the technological innovations and advancements envisioned within the mega hub in Ras Al-Khair Industrial City during a panel discussion titled “Making Africa, Western and Central Asia Processing and Manufacturing Hubs.”
Vale’s participation at the forum underscores the company’s pivotal role in the region’s sustainable mining sector, showcasing strong alignment with the Kingdom’s Vision 2030 and commitment to net-zero emissions through its project in Ras Al-Khair.