Exploring New Horizons: Saudi Minister Eyes Mining Tech And Investments In Chile

Minister of Industry and Mineral Resource Bandar bin Ibrahim Alkhorayef explored investment opportunities in lithium, copper, and iron ore production during his visit to major mining companies and technology centres in Santiago, Chile. He also discussed the transfer of knowledge, innovation, and advanced technologies in the mining sector.

Alkhorayef met with Codelco chief executive Ruben Alvarado to discuss investment opportunities in mineral production, particularly lithium and copper. Codelco, established in 1976, is a global leader in copper exploration, production, and sales. The company has a significant presence in key markets across Asia, Europe, and the United States.

The Kingdom partners with Codelco through Almar Water Solutions company, owned by Abdul Latif Jameel. Minister Alkhorayef also held bilateral meetings with leaders of major Chilean mining companies such as Antofagasta PLC, SQM, and Quiñenco. These discussions focused on mutual opportunities in the mining sector, particularly copper, lithium, and iron ore.

During these meetings, the role of Manara Minerals Investment Company (Manara) was highlighted in capitalising on these opportunities. Participants reviewed current investment prospects in mineral exploration within the Kingdom. They also discussed the exploration incentives program and licensing for mining belts.

Minister Alkhorayef and officials from the Advanced Mining Technology Center (AMTC) and AngloAmerican Company's mining control centre discussed using modern technologies to enhance mining operations. This includes adhering to global environmental standards, remote mine management practices, and applying artificial intelligence (AI) in mineral exploration.

The tour included Ministry of Industry and Mineral Resources Vice Minister for Mining Affairs Eng. Khalid bin Saleh Al-Mudaifer and Saudi Export-Import (EXIM) Bank Chief Executive Saad Alkhalb. Leaders from the industry and mining sector also attended these visits.

Saudi Vision 2030 Goals

Alkhorayel’s tour of Brazil and Chile aimed to explore investment opportunities in Saudi Arabia's mining sector. Starting on July 22, it featured meetings with major global mining companies to strengthen international partnerships and attract foreign investments. This effort aligns with Saudi Vision 2030's goal to make the Kingdom a global hub for mining and minerals.

The Kingdom aims to maximise the economic value of its mineral resources estimated at SAR 9.4 trillion. It seeks to enhance its status as a major player in the global mining market by attracting foreign investments, developing local competencies, and adopting modern technologies.

Regulatory Improvements

In recent years, Saudi Arabia has taken several measures to improve the investment environment in the mining sector. These include amending the mining investment bylaw and launching enablers and incentives such as co-financing 75% of capital expenditures, a 5-year tax exemption, and allowing 100% direct foreign ownership.

The Ministry of Industry and Mineral Resources announced an Exploration Empowerment Program allocating $182 million to mitigate investment risks in exploration. The Kingdom provides all geological data on a digital platform to assist investors in making clear decisions while adhering to transparency standards.

Geological Survey Progress

The Saudi Geological Survey has made significant progress in its mineral exploration programs including geological survey projects valued at approximately SAR1 billion. The Kingdom expedited granting licenses to local and international investors in this sector.

Three global public auctions for mining licenses were announced recently. Additionally, the National Minerals Program was established to enhance mineral supply chains' quality and efficiency ensuring continuous supply for local industries.

New Exploration Licenses

The Ministry launched metalliferous belts including three exploration licenses in Jabal Sayid belt in Madinah two weeks ago. This area contains base metals like copper, zinc, lead along with precious metals such as gold and silver.

Two exploration licenses were issued for Al-Hijar site located in Shuwass Valley belt in Asir region rich with copper zinc gold silver among other metals covering an area of 4788 square kilometers aiming at accelerating resource exploitation within Kingdom’s mineral resources.

With inputs from SPA