Saudi Arabia Announces Bidding For Seven New Mining Exploration Licenses

The Ministry of Industry and Mineral Resources has initiated the bidding process for seven new exploration licenses. These licenses cover nearly 1,000 square kilometers in total. This move is part of the ministry's Accelerated Exploration Program, which aims to speed up the exploration and development of Saudi Arabia's mineral resources, valued at SAR9.3 trillion. This initiative aligns with Saudi Vision 2030, aiming to make mining a key pillar of the national industry.

The seven sites designated for exploration licenses contain various precious and base metals. Umm Qasir in Riyadh holds gold, silver, lead, and zinc across 20 square kilometers. Jabal Sabha, also in Riyadh, has silver, lead, zinc, and cobalt over 171 square kilometers. In Aseer, Wadi Ad Dawsh spans 157.7 square kilometers with gold, silver, and copper deposits.

Shaib Marqan in Riyadh covers 92 square kilometers and contains gold, silver, and copper. Wadi Al Junah in Aseer extends over 425.37 square kilometers with copper, silver, zinc, and gold deposits. Hazm Shubat in Aseer spans 93.47 square kilometers and contains gold. Lastly, Huwaymidan in Makkah covers 34 square kilometers with gold deposits.

The ministry has set early September 2024 as the deadline for submitting proposals for these exploration licenses. The evaluation process will be transparent and fair, assessing factors such as work programs, technical capabilities, social impact plans, and innovative initiatives. Technical aspects will carry a weight of 70%, while community contributions will account for 30%.

Incentives for Exploration

To support exploration efforts, the ministry has introduced new incentives in collaboration with the Saudi Investment Ministry. Companies holding exploration licenses less than five years old can receive up to SAR7.5 million in funding. Additionally, existing mining investment incentives include 100% foreign ownership and up to 75% capital expenditure financing.

Investors interested in these opportunities can visit the Ta'adeen platform to access detailed information and technical data about the seven new sites.

This initiative marks a significant step towards realising Saudi Vision 2030 by enhancing the mining sector's contribution to the national economy.

With inputs from SPA