Saudi Arabia’s Ministry of Industry and Mineral Resources has announced the unveiling of its largest mineralized belts, covering 4,788 square kilometers and including five new exploration licenses. The ministry is inviting major mining and exploration companies to participate in the current Exploration Licensing Rounds to unlock the extensive mineral wealth of these belts. This initiative reflects Saudi Arabia’s commitment to strengthening its mining and minerals sector and creating investment opportunities. The available exploration licenses are part of the ministry’s strategy to boost exploration investment and support Vision 2030 objectives, positioning mining as a key industry in the Kingdom.
The five available exploration licenses cover significantly larger areas than previous rounds and are targeted at high-net-worth companies with developed base and precious metal mines. Saudi Arabia is seeking investors capable of exploring and discovering large, tier-1 deposits within approximately 1,000 square kilometers of exploration licenses. The Kingdom’s infrastructure and competitive financing options make it well-positioned to develop new tier-1 sites. The Ministry is inviting both local and international companies to participate in the Exploration Licensing for mineralized belts such as Jabal Sayad and Al-Hajjar that contain copper, zinc, lead, gold, silver, and other valuable minerals.
Jabal Sayad and Al-Hajjar are highlighted as the largest mineralized belt sites ever launched by the Kingdom. The Jabal Sayad belt includes prominent VMS deposits like Jabal Sayid and Mahd Al-Thahab Mines, with the untapped potential of the Umm ad Damar deposit for exploration. The Al-Hajjar site, within the Wadi Shwas VMS Belt in Asir Terrane, is known for its rich gold, copper, and zinc deposits. The bidding process for the exploration licenses will be transparent and conducted in stages, with pre-qualification beginning from July to October 2024. Qualified bidders will submit technical proposals, social, and environmental impact management plans by December 2024, with winners announced and licenses granted in January 2025.
The Ministry is committed to supporting bidders through the Exploration Enablement Program (EEP), covering up to 25% of drilling, testing, and geoscientific study expenses. The EEP also provides coverage for salaries of employees residing in the Kingdom and local salary costs during the initial two years of exploration. The ministry aims to make all geological data related to the belts available on the electronic ‘Ta’adeen’ platform to ensure equal opportunities for all bidders and boost exploration spending in the Kingdom. This initiative will enhance the national geological database, create job opportunities, and support sustainable economic growth.
Saudi Arabia’s Arabian Shield, with estimated mineral resources valued at SR9.5 trillion, presents significant economic potential for the Kingdom. The country has been recognized as a premier mining jurisdiction, praised for its efficient licensing process and attractive regulatory framework in the Mining Journal World Risk Report. By inviting major mining companies to explore and develop new mineral sites, Saudi Arabia aims to further strengthen its mining sector, attract investment, and achieve its Vision 2030 objectives for economic diversification and sustainable growth.
