Saudi Arabia Sees Mining Growth As Firms Eye $2.5 Trillion Mineral Wealth
Saudi Arabia is offering incentives and additional licences as mining firms look to exploit an estimated $2.5 trillion of mineral resources.
The Ministry of Industry and Mineral Resources reported a notable increase in the demand for mining licences following the implementation, in January 2021, of the new Mining Investment Law, which aims to promote investment in the sector, spur its development, and increase the Kingdom’s mineral production.
According to the ministry, the number of exploitation licences has risen from eight before the law was passed to 19 in 2023, representing a growth rate of 138 percent.
This surge is attributed to the Kingdom’s plan to make the mining sector a key component of the national industry, thus positioning the country as a reliable global destination for mining activities.
Furthermore, the Kingdom aims to maximise the exploitation of its estimated SR9.4 trillion ($2.5 trillion) worth of mineral wealth.
According to the ministry, the Mining Investment Law has significantly streamlined the process of obtaining mining licences, attracting both local and international investors.
As a result, the number of building material quarry licences increased 241 percent, to 538 in 2023 from 158 before the law was enacted, and of exploration licences rose to 259 in 2023, compared to 58 before the law, a growth rate of 347 percent.
It was also said that mining strategy initiatives, such as the Accelerated Exploration Programme, have led to more licences being issued.
The Ministry of# Industry_and_Mineral_Resources, in collaboration with the Ministry of Investment, unveils a groundbreaking incentive package aimed at de-risking mineral exploration.
— وزارة الصناعة والثروة المعدنية (@mimgov) March 19, 2024
To learn more: https://t.co/TM5i35VDFw pic.twitter.com/S6PUcOcoIc
These initiatives have reduced the time required to obtain necessary approvals, which used to take several months.
The Ministry of Industry and Mineral Resources, in collaboration with the Ministry of Investment, has introduced a new mineral exploration incentives package, valued at approximately SR685 million ($183 million), to stimulate investment in mining exploration and bolster the national economy, as outlined in Vision 2030 and in line with the Kingdom’s sustainable development goals.
According to the ministry, these incentives have been designed to advance geological knowledge, identify unexplored mineral resources, and develop local exploration skills.
They encourage investors in exploration activities and lend support to local talents and expertise in the mining sector.
The ministry emphasised that the newly introduced incentives also include support for companies that have been holding valid exploration licences for less than five years, each being eligible for support of up to SR7.5 million ($2 million).
Moreover, companies can obtain support for up to 15 licences, subject to the program’s terms and conditions.
