Saudi ministry awards three mineral exploration licences

Saudi Arabia has awarded exploration licences in a fourth round of tenders intended to help the Arab world’s largest economy tap its mineral resources as it diversifies its economy away from oil.

Ajlan & Bros and Norin Mining won a licence for the exploration of the Bir Umq site, the Saudi Press Agency reported, quoting the Ministry of Industry and Mineral Resources.

Another was awarded to a consortium comprising Royal

Roads and MSB Holding company for the exploration of the Jabal Sahabiya site.

Sumou Holding and the Kuya Silver Consortium won the tender to explore the Umm Hadid site in central Saudi Arabia.

The announcements came during the Future Minerals Forum under way in Riyadh.

The licences were awarded “as part of the accelerated exploration programme initiative, which has been designed to effectively leverage the kingdom’s mineral resources in support of the development and growth of the mining sector, in line with the goals of Saudi Vision 2030 and the National

Industrial Development and Logistics Programme”, the SPA report said.

Saudi Arabia created a mineral exploration incentive programme with a budget of more than $182 million, Minister of Industry and Mineral Resources Bandar Alkhorayef told the forum yesterday.

“This programme will de-risk investments in our exploration, securing to enable new commodities, greenfield projects … and to drive the … future of exploration sector,” he said.

Deals worth 75 billion Saudi riyals ($20 billion) are expected to be signed during the event, he said. The government has increased its estimates for untapped mineral resources in the country to $2.5 trillion, from a 2016 forecast of $1.3 trillion, Mr Alkhorayef added.

“Demand for minerals and metals will increase globally about six times by the year 2040,” Yasir Al Rumayyan, governor of the kingdom’s Public Investment Fund, said.

“We saw this opportunity and we decided to leverage resources locally.”

Last month, the kingdom announced the discovery of a “significant gold resource potential” along a 100km stretch from the existing Mansourah Massarah gold mine.