Saudi Arabia Unveils Major Mineralized Belts to Boost Mining Sector
Overview
Saudi Arabia has announced its largest mineralized belts to date, covering a substantial area of 4,788 square kilometers and introducing five new exploration licenses. This strategic move is part of the Kingdom's broader effort to develop its mining sector and support its economic diversification goals under Vision 2030.
Key Details
Exploration Licenses:
- Jabal Sayid Site: Three permits are reserved for this site in Madinah, covering 2,892 sq. km. The area is rich in minerals including gold, silver, copper, zinc, and lead.
- Al-Hajjar Site: The remaining two licenses pertain to this site in the Asir region, spanning 1,896 sq. km. It also includes reserves of gold, silver, copper, zinc, and lead.
Economic and Strategic Goals:
- Mineral Resources Value: The mineral resources in these areas are valued at SR9.3 trillion ($2.4 trillion).
- Economic Transformation: The initiative aims to position mining as a cornerstone of Saudi Arabia's industrial economy, enhancing the sector's contribution to the national economy and supporting Vision 2030.
Competition and Licensing Process:
- The process includes several stages: pre-qualification, release of the information memorandum, proposal evaluation, and announcement of winners.
- Jarrah bin Muhammad Al-Jarrah, the official spokesman for the Ministry of Industry and Mineral Resources, emphasized that this initiative will attract major international and local mining firms, boost exploration spending, and support the energy transition.
Expected Outcomes:
- Economic Impact: The project is anticipated to enrich the national geological database, create job opportunities, and foster sustainable economic growth.
- Global Position: Saudi Arabia has been recognized for its rapid growth in mining sector investments. The Kingdom is noted for having developed a favorable regulatory and infrastructural environment, ranking as the second-best globally in terms of mining licensing.
Incentives for Exploration:
- New incentives have been introduced in collaboration with the Ministry of Investment, supporting companies with valid exploration licenses for less than five years with grants up to SR7.5 million.
Conclusion
Saudi Arabia’s latest initiative to unveil its largest mineralized belts and issue new exploration licenses marks a significant step in the Kingdom’s strategic push to elevate its mining sector. By attracting both local and international investment and enhancing its regulatory framework, Saudi Arabia is positioning itself as a major player in the global mining industry, aligning with its Vision 2030 objectives for economic diversification and sustainable growth.