Saudi Arabia Awards Mining Exploration Licenses to Local and International Firms

Saudi Arabia’s Ministry of Industry and Mineral Resources has awarded mining exploration licenses to both local and international firms, including Vedanta and a consortium of Ajlan & Bros and Zijin Mining. These licenses pertain to mineralized belts rich in base and precious metals, covering 4,788 square kilometers. The initiative aims to diversify the economy under Vision 2030, with an investment of approximately 366 million riyals planned over three years.

On Tuesday, the Saudi Ministry of Industry and Mineral Resources announced the awarding of mining exploration licenses to several local and international companies, as reported by the state news agency SPA. Notable recipients include Indian mining firm Vedanta and a consortium consisting of local company Ajlan & Bros and Zijin Mining from China.

These exploration licenses target the kingdom’s first mineralized belts situated at Jabal Sayid in Madinah and Al Hajar in Aseer, which are abundant in base and precious metals such as copper, zinc, gold, and silver. The total area covered by these licenses is approximately 4,788 square kilometers (1,849 square miles).

According to SPA, the companies are expected to invest around 366 million riyals ($97.6 million) in exploration activities over the next three years. The expansion of Saudi Arabia’s mining industry is an integral part of the Vision 2030 plan, aimed at diversifying the economy and reducing dependence on fossil fuels, with a target of attracting $100 billion in foreign investment annually by 2030.

The licensing initiative for international mining firms commenced in 2022. In a notable revision, last year, Saudi Arabia updated its estimates of untapped mineral resources, raising the figure to $2.5 trillion from a previous forecast of $1.3 trillion made in 2016, which includes phosphate, gold, and rare earth minerals.

(For reference, $1 equals 3.7505 riyals)

In conclusion, Saudi Arabia’s recent issuance of mining exploration licenses reflects its commitment to developing a robust mining sector as part of its Vision 2030 initiative. By inviting both local and international firms to explore its mineralized areas, the kingdom aims to significantly enhance its economic diversification and attract substantial foreign investment. The updated mineral resource estimates further underscore the potential of the country’s mining industry.

Original Source: www.mining.com