Saudi Arabia Announces Largest Mineral Belt Tender and Targets Global Mining Companies

The Saudi Ministry of Industry and Mineral Resources has announced the launch of “the first mineral belts of their kind,” spanning an area of 4,788 square kilometers. This initiative aims to enhance the mining sector in the Kingdom and provide competitive opportunities for both local and international mining companies

This move is part of the Kingdom’s efforts to accelerate the exploration and exploitation of its vast mineral resources, estimated to be worth approximately 9.3 trillion Saudi Riyals

The tendered mineral belts include three exploration licenses in the Jabal Sayid belt, which covers an area of 2,892 square kilometers and contains a range of base and precious metals such as copper, zinc, lead, gold, and silver

Additionally, there are two exploration licenses for the Al-Hijar site, located in the Wadi Shawas belt, covering an area of 1,896 square kilometers and featuring similar precious metals

This step supports “Saudi Vision 2030,” which aims to make the mining sector the third pillar of the national industry and enhance the Kingdom’s position as a regional and global center in this sector

On July 17, the Saudi Cabinet approved the establishment of the “National Mining Program,” which will be overseen by the Ministry of Industry and Mineral Resources

The program aims to enhance the Kingdom’s status as a global hub for mineral exploration and exploitation, meeting the increasing demand for minerals at both the local and international levels, as stated in a post on the “X” platform

Jarrar Al-Jarrah, spokesperson for the Ministry of Industry and Mineral Resources, explained that “the launch of these large-scale sites is the first of its kind in the Kingdom”

He added that the goal is to attract major international and local mining companies to explore strategic minerals that contribute to energy transformation and support other industrial sectors.

In June, Saudi Arabia announced the success of six companies in the largest mineral exploration competition in the Kingdom, covering six sites with a total area of 1,000 square kilometers

Saudi Minister of Industry and Mineral Resources, Bandar Al-Khorayef, stated in April that the top 20 mining companies globally have shown interest in investing in the Kingdom

This year, Saudi Arabia increased its estimates for untapped mineral resources from $1.3 trillion to $2.5 trillion (equivalent to 9.4 trillion Riyals), a 90% increase

Al-Khorayef explained in a previous interview that this increase is due to the discovery of additional quantities of minerals such as phosphate, gold, zinc, and copper, as well as the identification of critical minerals important in many industries, in addition to the reassessment of existing mineral resources

The prequalification period for companies competing for the new mineral belts will extend from July to October 2024, followed by the invitation to submit bids in December, with the winners expected to be announced in January 2025, according to Al-Jarrah