Arab News, Thu, Jun 27, 2024 | Dhu al-Hijjah 21, 1445
Saudi mining bodies among winners in 5th exploration licensing round
Saudi Arabia:
Six mining companies have been approved to explore various sites across Saudi
Arabia, as the Kingdom pushes ahead with growing the sector.
The Ministry of Industry and Mineral Resources
unveiled the successful bidders for its fifth Round of Exploration Licensing in
a post on X, with exploration areas awarded collectively covering a total area
of 1,000 sq. km.
Saudi Arabia’s mining sector has surged with a 138
percent increase in exploitation licenses issued since the new Mining Investment
Law of 2021.
The number of permits rose from eight to 19 last
year, as Saudi Arabia aims to boost production and investment to capitalize
on mineral wealth estimated at SR9.4 trillion.
Discovery Arabian Mining Co. has been awarded Al
Halahilah in the Najran region, while Al Masane Al Kobra Mining Co., also known
as AMAK, has been granted rights to Jabal Qaran, located in the same area of the
Kingdom.
The latter firm was also given permission to
explore the Al-Hijra site in the Asir region.
The Makman Hijab site in the Riyadh region is set
to be explored by an alliance of Eqleed Group and Indotan Mining Co.
Further south in the Asir region, the An Nimas
site has been awarded to Saudi Arabian Mining Co., also known as Ma’aden, the
Kingdom’s foremost mining corporation.
In the western part of the country, the Al Miyah
site in the Makkah region has been granted to Royal Roads Arabia Co.
The nation’s mining sector has been expanding
locally and internationally, and this licensing round represents a key component
of Saudi Arabia’s Vision 2030 – which aims to diversify the economy and reduce
its dependency on oil.
In January, the Royal Commission for Jubail and
Yanbu signed a memorandum of understanding with Brazilian mining company
Vale for the development of an iron ore briquettes project in Saudi Arabia.
The MoU was signed on the sidelines of the two-day
Future Minerals Forum, during which Vale disclosed its plans for the Middle
East.
The Saudi mining sector’s reforms have been
recognized as the fastest-growing regulatory and investment-friendly environment
globally over the past five years, according to a report by MineHutte, an
independent research and consultancy firm based in the UK.
The firm has stated that the Kingdom has been
ranked the second-best country internationally for its licensing environment.