Ministry of Industry announces local and international companies winning exploration licenses in Kingdom’s first diversified mineral belts.
The Ministry of Industry and Mineral Resources has announced the awarding of exploration licenses to a number of local and international companies in the first mineralized belts in the Kingdom. These belts are located in the Jabal Sayid and Al Hajjar areas, covering a total area of 4,788 square kilometers. This initiative is part of the ministry’s plan to accelerate the exploration and exploitation of mineral resources in the Kingdom, which are estimated to be worth 9.3 trillion riyals.
The ministry disclosed that the winning companies include Ajlan Noreen and Brothers Mining Company, which obtained the exploration license in the southern Al Hajjar site. Meanwhile, an alliance consisting of Artar, Gold and Limited Metals Company, and Jacaranda Company – fully owned by the Australian company Hancock Prospecting – won the exploration license at the northern Al Hajjar site.
The Indian mining company Vedanta Limited, one of the world’s largest mining companies, secured the first exploration license in the Jabal Sayid belt, while the alliance between Ajlan Noreen and Brothers and Zijin Mining Company from China – one of the top five mining companies in the world – obtained the second exploration license in the Jabal Sayid area.
The competition received 14 proposals from various international and local companies that passed the pre-qualification stage. The proposals were evaluated based on technical expertise, proposed work programs, and social and environmental commitments.
The competition included several sites, including two exploration licenses in the Jabal Sayid belt, known for its significant copper, zinc, lead, gold, and silver deposits. Additionally, two exploration licenses were awarded in the Al Hajjar area, encompassing copper, zinc, gold, and silver reserves.
It is noteworthy that major international mining companies such as Zijin Mining, Hancock Prospecting, and Vedanta Limited received mining licenses for the first time in the Kingdom. This highlights the attractiveness of the Saudi mining sector and the opportunities available for large mining companies to compete for exploration licenses.
The total expenditure on exploration by the winning companies is expected to exceed 366 million riyals over the next three years. Moreover, these companies have committed to spending over 22 million riyals on community development initiatives in the areas near the mining sites, creating job opportunities for local residents.
The winning companies have pledged substantial investments in exploration activities and community development projects. For example, Ajlan Noreen and Brothers Mining Company committed around 209 million riyals for exploration in the southern Al Hajjar site, including over 119,000 meters of drilling. They also allocated 11.2 million riyals for social initiatives, such as building schools for girls in nearby provinces.
Similarly, the alliance between Artar, Gold and Limited Metals Company, and Jacaranda committed over 62 million riyals for exploration in the northern Al Hajjar site, with approximately 52,000 meters of drilling. They also pledged 4.2 million riyals for community initiatives, including infrastructural development in the area.
Vedanta Limited committed around 33 million riyals for exploration in the Jabal Sayid 1 site, with approximately 22,000 meters of drilling. They also allocated 3 million riyals for community initiatives, focusing on the employment and training of local residents near the site.
Furthermore, the alliance between Ajlan Noreen and Brothers Mining Company and Zijin Mining Company pledged around 62 million riyals for exploration in the Jabal Sayid 2 site, including 51,000 meters of drilling. They have allocated 4 million riyals for community initiatives, aimed at developing the infrastructure of road networks in the region.
The Ministry of Industry and Mineral Resources launched the second phase of the Exploration Empowerment Program in collaboration with the Ministry of Investment, to support mining exploration activities and reduce risks for exploration companies in their initial stages. The Kingdom provides additional incentives under the mining investment system, allowing foreign companies to establish 100% owned subsidiaries and access financing up to 75% of capital costs through the Saudi Industrial Development Fund.
These competitions are part of the ministry’s efforts to achieve the comprehensive goals of the mining sector and mining industries in line with Saudi Vision 2030. The vision aims to maximize the exploitation of mineral resources and enhance the role of the mining sector as a key pillar of the national economy.
It is worth mentioning that within the context of the fourth International Mining Conference held in January, the Ministry of Industry and Mineral Resources announced the offering of 50,000 square kilometers of mineralized belts containing gold, copper, and zinc. This initiative aims to boost exploration activities and create an attractive investment environment for both local and international mining companies, with opportunities to apply through the mining platform.
