Saudi Ministry Of Industry Launches Pre-Qualification Applications For 9th Exploration Licensing Round Covering Three Mineral Belts

Saudi Arabia's Ministry of Industry and Mineral Resources has initiated pre-qualification applications for the ninth round of exploration license competitions. This round covers three mineralized belts, totalling 24,946 square kilometers. The initiative is part of a broader plan to offer exploration licenses for over 50,000 square kilometers by 2025. This was announced at the fourth Future Minerals Forum in January.

The ministry's strategy aims to boost greenfield exploration and development within the Kingdom's mining sector. It seeks to maximize mineral resources valued at $2.5 trillion and enhance value-added mineral supply chains. The targeted belts include Al-Naqrah and Al-Sukhaybirah "Al-Safraa" in Madinah, and Al-Duwaihi "Nabaitah" in Riyadh. These sites are rich in precious and base metals like gold, copper, silver, zinc, and nickel.

This year's exploration license competitions are designed to be fully automated, transparent, and fair for investors. The process involves three main stages: pre-qualification, technical proposal submission, and license granting. The pre-qualification stage began at the Future Minerals Forum in January and will continue until early May. The ministry plans to conclude this round by the end of August.

During the pre-qualification stage, applicant companies' technical competence is assessed. Qualified bidders are then invited to submit technical expertise proposals along with social and environmental impact management plans. Winners will be announced before granting exploration licenses.

To ensure equal opportunities among competitors, geological and technical data have been made available on the "Taade'en" electronic platform. This step is expected to enhance transparency and efficiency in exploration processes while increasing exploration expenditure within the Kingdom.

The availability of data also aims to enrich the National Geological Database with additional technical information. This initiative is anticipated to create new job opportunities and promote sustainable economic growth in line with Saudi Arabia's commitment to developing its mining sector according to global standards.

Investment Incentives

The Ministry of Investment (MOI), alongside the Ministry of Industry and Mineral Resources, launched the second phase of the "Mining Exploration Enablement" program in January. This program offers financial support up to SAR 7.5 million per project for companies with valid exploration licenses under five years old.

The program aims to support mineral exploration in Saudi Arabia by mitigating risks for early-stage exploration companies and encouraging investment in the sector. Additionally, incentives outlined in the Mining Investment Law allow for 100% foreign ownership of companies while providing funding up to 75% of capital costs through the Saudi Industrial Development Fund (SIDF).

Commitment to Vision 2030

Over recent years, more than 10,000 square kilometers have been tendered for exploration by the ministry. Offering 50,000 square kilometers by 2025 reaffirms Saudi Arabia's commitment to creating a transparent investment environment that supports mining sector growth.

This initiative aligns with Saudi Vision 2030 by stimulating investments that foster economic development within the Kingdom's mining industry.

With inputs from SPA