MINING

Vision 2030 aims to diversify the Saudi Arabian economy and reduce the country’s reliance on oil revenues by transforming key sectors like mining. The kingdom's mineral wealth has been estimated at USD 2.5 trillion – higher than a previous forecast of USD 1.3 trillion.

This presents a significant opportunity for economic growth, according to the Ministry of Industry and Mineral Resources. To tap into this potential, Saudi Arabia is implementing a comprehensive strategy focused on exploration, development, and industrial growth. 

The strategy is organised into three phases. Mining activities involve exploration and survey operations to determine mineral quantities, as well as conducting of economic feasibility studies, development of mines, and processing of raw materials. Intermediate industries include refining and smelting operations to produce basic materials like aluminium alloys and solid steel blocks. And finally, conversion industries entail the manufacturing of semi-finished products such as iron and aluminium sheets, as well as finished products like iron pipes and bars.

The government has implemented the Mining Investment Law to streamline licensing processes, minimise environmental impacts, and maximise benefits for local communities. A comprehensive geological survey programme is also underway to gather crucial data and boost investor confidence.

To accelerate the development of the mining sector, Saudi Arabia has launched an incentive package worth SAR 685 million (USD 182 million) for mining investors, The initiative is part of a broader effort to attract international and local investments into the sector.

The Saudi Industrial Development Fund (SIDF) plays a crucial role by financing advanced exploration and mining projects. The fund covers up to 75% of eligible project costs, providing substantial support for mid-tier and lower-end manufacturing, small and medium enterprises (SMEs), digitalisation efforts, renewable energy projects, and initiatives to increase local sector content.

In 2024, Saudi Arabia plans to award more than 30 mining exploration licenses to international investors, up from previous estimates. This reflects the kingdom's commitment to expanding exploration activities and exploiting untapped mineral resources.

The Ministry of Industry and Mineral Resources issued 152 new industrial licenses, including 20 for non-metallic mineral products and 19 for manufacturing formed metal products, excluding machinery and equipment earlier this year. This brings the total number of operating and under-construction factories in the kingdom to 11,672, with a combined investment of SAR 1.54 trillion.

RICH IN MINERALS

Saudi Arabia is rich in various non-oil mineral commodities, positioning it as a significant player in the global mining sector. Apart from gold, key mineral reserves and production include phosphates, bauxite, copper, and zinc, which are vital for energy transition.

Saudi Arabia possesses substantial phosphate reserves, primarily located in its northern region. These reserves are critical for the production of fertilisers, contributing to the global agricultural sector. Bauxite reserves in the kingdom are also significant, supporting the production of aluminium. This metal is essential for various industries, including construction, automotive, and packaging.

Copper and zinc deposits are found in various parts of the country, supporting the production of essential industrial materials. Iron ore reserves are crucial for the steel industry, which is vital for infrastructure development and various manufacturing processes.

The kingdom also has potential reserves of rare earth elements, which are critical for high-tech industries, including electronics, renewable energy, and defence.

EXPLORATION EXPEDITIONS

Saudi Arabia has several significant projects and initiatives in the mining sector that are already making substantial progress.

These include the Mansoura and Masara Mines spanning an area of 100 kilometres. The gold reserves here have a projected annual production capacity of 250,000 ounces, and underscore the vast untapped potential of the kingdom’s mineral wealth. 

Part of the discovery include Saudi Mining Services Co. (ESNAD), supporting mining investments by assisting mining directorates and developing robust monitoring and control procedures at mines. This includes using advanced monitoring tools and modern technologies to ensure compliance with environmental, health, and safety standards.

A Saudi Geological Survey's national geological information programme also provides detailed geological information and maps, conducts aerial and geochemical surveys, and identifies promising mineral deposits. This programme aims to attract and increase investments in the mining sector, boosting confidence in exploration works.

With a strong infrastructure in place, the kingdom recently announced six new mining opportunities focused on gold, copper, zinc, lead, and silver ores in various regions of the country, covering a total area of over 940 square kilometres (sq km).

The opportunities for exploration licenses include the Al-Halahila site in the Najran region, estimated to be more than 34 sq km in size and containing copper, zinc, and gold deposits. Additionally, the Jabal Qaran site also in the Najran region, boasts an area exceeding 57 sq km, with deposits of copper, gold, zinc, silver, and lead.