The Ministry of Industry and Mineral Resources in the kingdom of Saudi Arabia has unveiled the largest mineralised belts in history and is inviting major mining and exploration companies to participate in current exploration licensing rounds.
The mineralised belts span 4,788km² and include five new exploration licences. As the largest mineralised belts launched in Saudi Arabia, the initiative highlights the country’s commitment to strengthening its mining and materials sector and creative investment opportunities.
The five available exploration licences are a part of Saudi Arabia’s plan to boost exploration and investment in the region and develop the countries Vision 2030 objectives, all the while unlocking the extensive mineral wealth of the belt.
The new licences are larger than previous exploration rounds, targeting high-net-worth companies capable of exploring Tier 1 deposits with around 1,000km² of licensing. Saudi Arabia’s infrastructure and highly competitive financing options make the development of Tier 1 sites possible.
Local and international companies have been invited to participate in the exploration licensing for the two mineralised belts.
The first is the Jabal Sayad site in north-east Jeddah. The site has three exploration licences available covering 2,892km² with the area containing high levels of copper, zinc, lead, gold and silver. In 2021, according to Mining Technology’s parent company GlobalData, the Jabal Sayad mine registered a run-of-mine production of 2.75 million tonnes per annum (mtpa).
The second site available in the exploration licensing round is the Al Hajar mine. Before its closure in 2013, it produced 2,500lb of gold annually. Two licences are available at this site covering 1,896km² containing gold, silver, copper and zinc deposits.
The bidding process for licences begins with pre-qualification between July and October 2024. Qualified bidders will submit technical proposals as well as social and environmental impact management plans by December 2024. The winners are expected to be announced and granted licences in January 2025.
The incentives for potential bidders are highlighted in the Exploration Enablement Programme, where varying percentages of practical, maintenance and employee salary costs are covered by the ministry for the first two years.
Successful bidders will contribute to Saudi Arabia’s Vision 2030 objective of increasing investment in the region as well as help extract the wealth of minerals from the largest mineralised belt in the history of Saudi Arabia.
