MINING

NEW LICENSES OFFER FRESH BOOST TO SAUDI MINING SECTOR

The Ministry of Industry and Mineral Resources has announced during the recently held Future Minerals Forum 2025 in Riyadh the successful bidders for its seventh round of tender licensing. 

The ministry had received 24 proposals from 11 local and international companies bidding for six sites covering 890 square kilometres (sq km) in the regions of Riyadh and Makkah. 

The successful bidders were Al Masane Al Kobra Mining Company, which received licenses for three sites: Jabal Al Klah North, Jabal Al Klah South, and Jabal Ad Dimah; Abdulrahman Saad Al Rashid & Brothers Co. and Gold & Minerals Company Limited Alliance, was awarded license for the Umm Hijlan (Mamilah) site; Skylark and Al Kalig Al Arabi for Mining secured the exploration license for the Wadi Al Lith site; and Power Nickel Company, was granted an exploration license for the Jabal Baudan site.

The bidders have committed SAR 126 million for exploration and SAR 9 million to implement their social programmes and support local communities.

The ministry has plans to launch 2025 licensing rounds covering a total area of 50,000 sq km for local and international investors. 

Authorities have also extended the deadline for qualified bidders to submit proposals for mining exploration in the kingdom’s first mineralised belts. The decision to extend the timeline follows requests from companies seeking additional time to finalise their procedures. 

MINERALISED BELTS

The exploration licenses pertain to the mineral-rich Jabal Sayid and Al-Hajjar belts, marking a significant milestone in Saudi Arabia’s mining sector. Competing for these licenses are some of the prominent names in the global mining industry, known for their expertise in extracting and processing critical minerals vital to future manufacturing needs. 

The contenders include Zijin Mining Group, Hancock Prospecting, Norin Mining, Ajlan & Bros Mining, IGO Limited, Silvercorp Metals Inc., First Quantum Minerals Ltd., a consortium of Artar & Gold and Minerals, a consortium of Pan African Resources and Saudi Gold Refinery, Vedanta Limited, McEwen Mining Inc., Al-Masane Al-Kobra Mining Co., K92 Mining, and a consortium of Orogen Royalties and Altius Minerals Corporation.

The mining projects align with Saudi Arabia’s broader strategy to  accelerate the exploration and development of its mineral resources, estimated to hold a value of approximately SAR 9.3 trillion. Through these efforts, the country aims to establish itself as a global leader in mining, while also advancing its economic diversification goals under Vision 2030. 

The mineralised belts span a total area of 4,788 sq km, oering significant opportunities for the discovery and extraction of base and precious metals. The Jabal Sayid belt alone covers three license areas totalling 2,892 sq km, rich in resources such as copper, zinc, lead, gold, and silver. Meanwhile, the Al-Hajjar belt includes two exploration license areas in the Wadi Shwas region, encompassing 1,896 sq km, also abundant in copper, zinc, gold, and silver.

Geological data for the mineralised belts have been made available on the Ta’adeen platform to ensure all competitors have equal access to critical information. This initiative is expected to boost spending on mining exploration, enrich the kingdom’s national geological database, generate new job opportunities, and contribute to sustainable economic growth. The extension also underscores Saudi Arabia’s commitment to develop its mining sector in line with global best practices, prioritising environmental sustainability and social responsibility.  

In support of its mining ambitions, the Ministry of Industry and Mineral Resources, in collaboration with the Ministry of Investment, has introduced a range of incentives to encourage exploration activities. These include financial support for companies holding active exploration licenses for less than five years, with funding of up to SAR 7.5 million.  

Additional incentives outlined in the Mining Investment Law allow for the establishment of wholly foreign-owned companies, financing of up to 75% of capital costs through the Saudi Industrial Development Fund, and discounts of up to 90% on mineral sales intended for local markets or manufacturing industries. The kingdom also ensures competitive and equal tax rates for both local and international investors.