Saudi Arabia Awards Exploration Licenses To Boost Mining Sector

The Ministry of Industry and Mineral Resources (MIM) has announced the winners of the fifth round of the Exploration Competition. This competition aimed to grant licenses for exploration at six sites across Saudi Arabia. These locations are rich in various base and precious metals, such as gold, silver, zinc, and copper.

Jarrah bin Mohammed Al-Jarrah, a spokesperson for the ministry, revealed that this round covered six sites with a total area of up to 1,000 km². This is the largest area ever recorded in the Kingdom's history. He mentioned that 30 proposals were received from 18 local and international bidders. These proposals were evaluated based on technical expertise, work programs presented, and social and environmental commitments.

The Discovery Arabian Mining Company, Al Masane Al Kobra Mining Company (AMAK), Alliance of Eqleed Group and Indotan Mining, Saudi Arabian Mining Company (Maaden), and Royal Roads Arabia Company have been chosen as the preferred bidders. They will explore the Al-Halahilah, Jabal Qaran, Makman Hijab, Al-Hijra, Nimas, and Al Miyah sites.

Discovery Arabian Mining Company will explore the Al-Halahilah site in Najran Region. They pledged SAR 4.9 million for exploration activities. This includes drilling about 2,000 meters in the first two years and around 20,000 meters over the next three years. Additionally, they committed SAR 1.87 million to social development initiatives.

AMAK has allocated SAR 46 million for mining exploration at the Jabal Qaran site in Najran Region. This includes drilling approximately 15,500 meters. They also committed SAR 3.5 million towards local community initiatives with an 80% local purchase commitment.

Moreover, AMAK has dedicated SAR 46 million for exploration at the Al-Hijra site in Aseer Region. This involves drilling around 43,000 meters. An additional SAR 8.5 million will be used for community initiatives with an 80% local market purchase rate.

The Eqleed Group and Indotan Mining Company Alliance will explore the Makman Hijab site in Riyadh Region. They have committed over SAR 6.3 million for exploration activities including drilling 10,000 meters at the site.

Exploration Spending Details

Maaden will explore the Nimas site in Aseer Region with a commitment of approximately SAR 17.9 million for mining exploration including drilling 28,500 meters. They have also allocated SAR 1.35 million to community initiatives.

The Royal Roads Arabia Company will explore the Al Miyah site in Makkah Region with a commitment of SAR 14.6 million for exploration work including drilling 11,600 meters.

Future Plans

Al-Jarrah stated that successful bidders have pledged to implement community initiatives across all six sites. The total exploration spending by these bidders exceeds SAR 136 million with an additional SAR 15 million dedicated to community development and job creation within these areas.

The ministry plans to launch the sixth round of exploration licensing during the third quarter of this year offering nine new sites for tendering.

"These mining tenders are part of our efforts to achieve the objectives of the Comprehensive Strategy for Mining and Metals Industry," said Al-Jarrah.

With inputs from SPA