Latest news with #SR9.3
Arab News
30-04-2025
- Business
- Arab News
Kuwaiti investors encouraged to explore opportunities in Saudi Arabia by industry minister
RIYADH: Saudi Arabia's minister of industry and mineral resources has urged Kuwaiti investors to seize untapped opportunities in the Kingdom's mining sector. The encouragement was given during Bandar Alkhorayef's meeting on April 30 with a group of Kuwaiti businessmen at a gathering organized by the Saudi Embassy as part of the minister's official visit to the Gulf country. The trip was designed to strengthen economic ties, enhance cooperation in the industrial and mining sectors, and attract high-quality investments to the Kingdom, according to a statement. During his meeting with the investors, the minister highlighted the crucial contribution of the industrial and mining sectors to the Kingdom's economic diversification, aligning with Saudi Vision 2030's aim to establish the country as a global industrial leader and a key hub for mineral production and processing. This aligns with developments across the Saudi mining sector in order to maximize its impact on the national economy and exploit mineral resources, estimated at more than SR9.3 trillion ($2.47 trillion), Alkhorayef noted. 'He pointed out that the National Industrial Strategy focuses on developing and localizing 12 vital industrial sectors, most notably food, pharmaceuticals, automotive, and aviation, as these sectors provide promising investment opportunities for local and international investors,' the newly released ministry statement said. 'His Excellency pointed out the Kingdom's endeavor to enable industrial transformation by adopting the latest manufacturing technologies, including applications of the Fourth Industrial Revolution, developing digital infrastructure in the industrial sector, and developing human capabilities and qualifying them to deal with advanced technologies,' it added. During the meeting, Alkhorayef highlighted the Kingdom's launch of the Factories of the Future program, which aims to automate industrial facilities and transform them into smart factories. The minister also indicated that the General Geological Survey Program for Mining Exploration currently covers 60 percent of the Arabian Shield region and that the sector offers promising investment opportunities in all stages of mining. He highlighted Saudi Arabia's strategic advantages that position it as a prime global investment hub, such as its location connecting three continents, advanced infrastructure, and abundant natural resources, as well as varied energy options and streamlined government processes and licensing. Toward the end of the meeting, Alkhorayef encouraged Kuwaiti companies and investors to explore the distinctive opportunities in the Kingdom's industrial and mining sectors, emphasizing the nation's supportive capabilities and incentives designed to facilitate and enhance the investor experience. Saudi Arabia, Kuwait to bolster collaboration in oil, commerce, industry During his official visit to Kuwait, Alkhorayef also held bilateral meetings with the Minister of Commerce and Industry Khalifa Abdullah Al-Ajeel and the Minister of Oil Tariq Sulaiman Al-Roumi. During the meeting with Al-Ajeel, the Saudi minister praised the longstanding and robust ties between the Kingdom and Kuwait, emphasizing that these historical relations serve as a solid foundation for strategic economic partnerships, particularly in the industrial sector. The discussion also emphasized the need to bolster industrial integration between the two sides in order to advance sustainable industrial development and promote economic diversification in both nations. The meeting with Sulaiman saw the crucial role of the crude oil sector highlighted as a key driver of development in both countries. It also explored strategic opportunities to expand collaboration in the petrochemical industry and discussed ways to increase trade exchange and direct joint investments toward emerging, high-potential sectors. In an interview with Arab News on the sidelines of the Standard Incentives for the Industrial Sector event in January, Alkhorayef said that Saudi Arabia is taking a flexible approach to distributing its SR10 billion standardized incentive program — which provides financial support to industrial projects — to maximize its impact. At the time, the minister said the program is designed to align with investor demand and deliver optimal returns.
Arab News
19-03-2025
- Business
- Arab News
Saudi Arabia opens doors to global mining giants with $97.5m exploration licenses
JEDDAH: Saudi Arabia has granted exploration licenses worth SR366 million ($97.5 million) to both local and international companies for its first mineral belts at Jabal Sayid and Al-Hajjar. These two sites, covering a combined area of 4,788 sq. km, are part of the Ministry of Industry and Mineral Resources' efforts to accelerate the exploration and development of the Kingdom's estimated SR9.3 trillion ($2.48 trillion) in mineral resources. Among the successful bidders, Ajlan and Bros-Norin for Mining secured the license for the southern Al-Hajjar site. A consortium consisting of Artar, Gold and Minerals Ltd Co., and Jacaranda, owned by Australian company Hancock Prospecting, won the license for the northern Al-Hajjar site. Vedanta Ltd, a major Indian mining giant, received the first exploration permit for the Jabal Sayid belt, while a second license for the same site went to a consortium of Ajlan & Bros Mining and Zijin Mining, a Chinese mining giant ranked among the world's top five. Saudi Arabia is focused on making mining a key pillar of its economy, alongside oil and petrochemicals. The Kingdom is home to over 5,300 mineral sites valued at SR5 trillion ($1.33 trillion), and the Ministry of Industry and Mineral Resources is working to unlock these resources to diversify the economy, create jobs, and position the Kingdom as a global mining hub in alignment with Vision 2030. The competition saw 14 companies, both local and international, submit bids after passing the pre-qualification stage. The submissions were evaluated based on technical expertise, proposed work plans, and social and environmental commitments, according to the Ministry's statement. The newly awarded licenses cover two areas within the Jabal Sayid belt, which spans 2,892 sq. km and contains valuable minerals such as copper, zinc, lead, gold, and silver. Additionally, two more licenses were granted for the Al-Hajjar site, covering 1,896 sq. km and rich in natural resources. The ministry emphasized that the involvement of major international mining companies like Zijin Mining, Hancock Prospecting, and Vedanta Ltd. underscores the growing global interest in Saudi Arabia's mining sector and the opportunities it offers through exploration license competitions. It also confirmed that the total exploration investment from the winning companies will surpass SR366 million over the next three years, with an extra SR22 million pledged for community development projects near the mining sites, aimed at creating job opportunities for local residents. Ajlan and Bros-Norin for Mining, which secured the southern Al-Hajjar site, will invest SR209 million in exploration, which includes over 119,000 meters of drilling. Furthermore, they will allocate SR11.2 million for community-focused initiatives, such as building intermediate schools for girls in nearby provinces. The consortium of Artar, Gold & Minerals Ltd., and Jacaranda will invest more than SR62 million in exploration at the northern Al-Hajjar site, including 52,000 meters of drilling. They will also direct SR4.2 million toward local infrastructure projects. Vedanta Ltd., the Indian mining giant, has committed SR33 million for exploration at Jabal Sayid 1, covering 22,000 meters of drilling. In addition, they will invest SR3 million in community development projects, focusing on local employment and training programs. The consortium of Ajlan & Bros Mining and Zijin Mining has pledged approximately SR62 million for exploration at Jabal Sayid 2, including 51,000 meters of drilling. They will also allocate SR4 million for community initiatives, particularly aimed at developing road infrastructure in the surrounding area. In line with these efforts, the Ministry of Industry and Mineral Resources has launched the second phase of the Mining Exploration Enablement Program, in collaboration with the Ministry of Investment, to mitigate risks for companies during the early stages of mining exploration. The Kingdom also offers incentives under the mining investment system, such as allowing foreign companies to fully own operations and providing up to 75 percent funding for capital costs through the Saudi Industrial Development Fund. During the fourth edition of the Future Minerals Forum, held in January, the Ministry of Industry announced the offering of 50,000 sq. km of mineralized belts containing gold, copper, and zinc. This initiative is part of the ministry's efforts to enhance exploration and create an attractive investment environment for local and international mining companies. Applications for these opportunities can be submitted through the Taadeen platform.
Arab News
12-03-2025
- Business
- Arab News
Saudi Arabia invites applications for exploration permits in Riyadh, Madinah regions
RIYADH: Saudi Arabia has opened applications for pre-qualification for mining exploration licenses across three mineral-rich belts in the Riyadh and Madinah regions, covering nearly 50 percent of the total area. This initiative spans 24,946 sq. km. and is part of the Ministry of Industry and Mineral Resources' broader plan to offer exploration licenses for over 50,000 sq. km. in 2025, following an announcement made at the 4th International Mining Conference in January. The ministry is inviting both local and international exploration companies to compete for these licenses, aiming to accelerate mineral exploration and development. This move is expected to harness Saudi Arabia's mineral wealth, estimated at SR9.3 trillion, and strengthen value-added mineral supply chains to support economic diversification, according to a ministry post on X. The targeted mineralized belts include Nuqrah and Sukhaybrah Al-Safra in the Madinah region, as well as Nabitah in Riyadh. These areas are rich in resources like gold, copper, silver, zinc, and nickel, presenting substantial investment opportunities. The pre-qualification application deadline for exploration licenses is set for May. To ensure transparency, geological and technical data for these sites are available on the Tadeen platform, providing investors with insights from previous licenses and geological surveys conducted by the Saudi Geological Survey Authority. In line with efforts to streamline the licensing process, the ministry has designed this year's mining exploration competition to be fully automated, transparent, and fair. The process will consist of three key phases: the pre-qualification phase, which evaluates the technical capabilities of applicants; the site selection and bidding phase; and the final award and licensing phase. The pre-qualification phase began in January during the International Mining Conference and will continue until early May. The ministry has ensured that all essential geological and technical data is accessible on Tadeen, ensuring a level playing field for all competitors, as reported by the Saudi Press Agency. This initiative is expected to drive exploration spending, enhance the national geological database, generate new jobs, and contribute to sustainable economic growth. It also aligns with Saudi Arabia's commitment to developing the mining sector in line with global best practices, with a focus on environmental sustainability and social responsibility. In a related move, the Ministry of Industry and Mineral Resources, in collaboration with the Ministry of Investment, launched the second phase of the Mining Exploration Empowerment Program in January. This initiative offers financial support of up to SR7.5 million per project to companies with valid exploration licenses that have been held for less than five years, according to SPA. The program is designed to reduce risks for early-stage exploration companies, encourage investment in the mining sector, and complement existing incentives under the Mining Investment Law, which allows 100 percent foreign ownership and provides financing of up to 75 percent of capital costs through the Industrial Development Fund. Saudi Arabia has allocated over 10,000 sq. km. for mining exploration in recent years. The upcoming 50,000 sq. km. for 2025 further underscores the Kingdom's commitment to fostering a transparent and attractive investment environment, as reported by SPA. This initiative plays a key role in the Kingdom's Vision 2030, which seeks to position mining as a vital pillar of economic diversification and a driver of sustainable growth.
