Saudi Arabia to tender first mining license for mineral exploration

The Saudi Ministry of Industry and Mineral Resources unveiled the Kingdom’s first mining tender for mineral exploration in Khnaiguiyah deposits, Duwadimi region.

The announcement was made during the third and last day of the Futures Minerals Forum held in Riyadh.

The new mining tender is aimed to complete the current licensing process based on the new Saudi Mining Investment Law and achieve the Vision 2030 objectives, with regard to attracting foreign direct investments (FDIs) from the private sector and increasing exploration initiatives.

Commenting on this tender, Abdullah bin Mufter Al-Shamrani, CEO of Saudi Geological Survey (SGS), said the ministry expected that the SAR 2 billion Khnaiguiyah project to provide 2,000- 3,000 direct and indirect job opportunities and contribute to the development of the zinc and copper industries in the country.

Extensive exploration works have been carried out in the Khnaiguiyah district over the past few years through 3 exploratory campaigns, with more than 100,000 meters drilled. Moreover, a 3D geological model recently developed by SRK Consulting, according to the ministry's data was finalized.

SGS stressed the great geological potential of the deposits amounting to 26 million tons of zinc and copper, respectively, and that they are key minerals for the transformation of energy sources in the world. It also expected demand for copper to reach 3.5 million tons per year by 2030, while demand for zinc from the solar power alone will double to 160,000 tons by the same year.

In line with the aspirations of the Kingdom to make the mining industry a more attractive destination for foreign investments, the licensing round will follow the principles of transparency, compliance and security of tenure as stipulated in the new Mining Investment Law. This includes a fully digital license application process for the sake of achieving full transparency, as well as the provision of a number of investment incentives, including co-financing of up to 75% of any new investment, five-year royalty facilities for mining companies, and a royalty discount of up to 90% on sales to domestic refining projects, the Ministry of Industry said in its statement.

Details of the tender process will be announced soon through this website: https://mining.mim.gov.sa/pages/public/MiningLicensingRound.xhtml