Saudi Arabia Issues Mining Exploration Licenses to Enhance Economic Diversification

The Saudi Ministry of Industry awarded mining exploration licenses to firms including Vedanta and a consortium of Ajlan & Bros and Zijin Mining, covering mineral-rich areas totaling 4,788 square kilometers. This initiative aims to stimulate investment and support the Kingdom’s Vision 2030 economic diversification strategy.

On Tuesday, the Saudi Ministry of Industry and Mineral Resources awarded mining exploration licenses to several local and international companies. Notable recipients include India’s Vedanta and a consortium made up of Ajlan & Bros and China’s Zijin Mining, among others.

These exploration licenses focus on Saudi Arabia’s first mineralized belts at Jabal Sayid in Madinah and Al Hajar in Aseer, known to be abundant in base and precious metals such as copper, zinc, gold, and silver. The total area covered by these licenses is approximately 4,788 square kilometers (1,849 square miles).

According to the ministry, the mining operations are expected to invest around 366 million riyals (equivalent to $97.6 million) in the exploration process over the next three years. This initiative aligns with the Kingdom’s Vision 2030 plan aimed at economic diversification and reducing dependency on fossil fuels.

As part of this strategic plan, the Saudi government aims to secure $100 billion annually in foreign investment by the year 2030. Notably, Riyadh commenced the issuance of licenses to international miners in 2022. Moreover, the Kingdom has recently adjusted its estimates for untapped mineral resources, projecting a total worth of $2.5 trillion, an increase from a 2016 estimate of $1.3 trillion.

Saudi Arabia is strategically enhancing its mining industry by awarding exploration licenses to both local and international companies, a move indicative of its Vision 2030 economic diversification plan. With significant investments projected, the Kingdom aims to position itself as a key player in the global mining sector while boosting foreign investment and optimizing its rich mineral resources.

Original Source: www.mining.com