MIM Announces Successful Bidders for 5th Exploration Round

The Ministry of Industry and Mineral Resources (MIM) has announced the successful bidders for its fifth round of exploration licensing, awarding rights across six sites in various regions of the Kingdom. The announcement, made in a press release on June 26, 2024, marks a significant step in Saudi Arabia’s efforts to unlock its mineral wealth and establish mining as the third pillar of its national industrial economy.

Context and Background

Saudi Arabia is aggressively pursuing the development of its mining sector as part of the Comprehensive Strategy for Mining and Metals Industry, which aligns with Vision 2030. The Kingdom aims to attract investments and diversify its economy away from oil. The fifth round of the Exploration Competition is the largest to date, covering a total area of up to 1,000 square kilometers. This round attracted 30 proposals from 18 local and international bidders, evaluated on technical expertise, work programs, and social and environmental commitments.

Key Details

The successful bidders include Discovery Arabian Mining Company, Al Masane Al Kobra Mining Company (AMAK), Alliance of Eqleed Group and Indotan Mining, Saudi Arabian Mining Company (Maaden), and Royal Roads Arabia Company. These companies have committed significant investments in exploration and community development. For instance, Discovery Arabian Mining Company pledged SAR 4.9 million for exploration at the Al-Halahilah site in Najran Region, including drilling about 2,000 meters in the first two years and 20,000 meters in the following three years. AMAK committed SAR 46 million for the Jabal Qaran site, also in Najran, and another SAR 46 million for the Al-Hijra site in Aseer Region. Maaden allocated approximately SAR 17.9 million for the Nimas site in Aseer, while Royal Roads Arabia Company committed SAR 14.6 million for the Al Miyah site in Makkah Region.

According to Jarrah bin Mohammed Al-Jarrah, the ministry’s spokesperson, the exploration spending by the successful bidders exceeded SAR 136 million, with an additional SAR 15 million committed to community development and job creation for local communities. He also highlighted that the bidders have pledged to implement community initiatives across the six sites.

Implications and Impact

This licensing round is expected to boost the local economy by creating jobs, supporting local businesses through procurement commitments, and developing infrastructure in remote areas. The involvement of both local and international companies underscores Saudi Arabia’s attractiveness as an investment destination. The ministry is already preparing for the sixth round, which will offer nine sites in the third quarter of 2024, further encouraging investment and enabling small and medium-sized mining companies to participate. Investors are invited to review the available sites and access geological data through the Taadeen platform.

Vision 2030 Alignment

These mining tenders are part of the ministry’s efforts to achieve the objectives of the Comprehensive Strategy for Mining and Metals Industry, which aims to optimally exploit mineral wealth and establish the mining sector as the third pillar of the national industrial economy. This aligns with the Kingdom’s Vision 2030, which seeks to diversify the economy and create sustainable opportunities for future generations. By fostering a robust mining sector, Saudi Arabia is positioning itself as a global leader in mineral resources, contributing to the nation’s prosperity and global economic engagement.

20 Questions

Q1. What did the Ministry of Industry and Mineral Resources announce?

A1. The ministry announced the successful bidders for the fifth round of its Exploration Competition, awarding licenses for exploration across six sites in various regions of Saudi Arabia.

Q2. When was the announcement made?

A2. The announcement was made on June 26, 2024, in a press release issued by the ministry.

Q3. Which companies were selected as preferred bidders?

A3. The preferred bidders are Discovery Arabian Mining Company, Al Masane Al Kobra Mining Company (AMAK), Alliance of Eqleed Group and Indotan Mining, Saudi Arabian Mining Company (Maaden), and Royal Roads Arabia Company.

Q4. What is the total area covered by the six exploration sites?

A4. The six sites cover a total area of up to 1,000 square kilometers, which is the largest area ever recorded in the Kingdom for such a round.

Q5. How many proposals were received and from how many bidders?

A5. The ministry received 30 proposals from 18 local and international bidders, which were evaluated based on technical expertise, work programs, and social and environmental commitments.

Q6. What is the total exploration spending committed by the successful bidders?

A6. The successful bidders committed over SAR 136 million for exploration activities, with an additional SAR 15 million for community development and job creation.

Q7. Which company won the Al-Halahilah site and what did it pledge?

A7. Discovery Arabian Mining Company won the Al-Halahilah site in Najran Region and pledged SAR 4.9 million for exploration, including drilling about 2,000 meters in the first two years and 20,000 meters in the following three years.

Q8. What community commitments did Discovery Arabian Mining Company make?

A8. The company committed about SAR 1.87 million to social development, including purchasing from the local market and allocating 65% of direct and indirect jobs at the site to local communities.

Q9. What minerals are found at the Al-Halahilah site?

A9. The Al-Halahilah site contains copper, zinc, and gold minerals and covers an area of over 34 square kilometers.

Q10. What did AMAK commit for the Jabal Qaran site?

A10. AMAK committed SAR 46 million for mining exploration at the Jabal Qaran site in Najran Region, including drilling approximately 15,500 meters, and SAR 3.5 million for local community initiatives.

Q11. What is the size and mineral content of the Jabal Qaran site?

A11. The Jabal Qaran site spans over 46 square kilometers and contains copper, gold, and lead deposits.

Q12. What did AMAK commit for the Al-Hijra site?

A12. AMAK allocated SAR 46 million for exploration at the Al-Hijra site in Aseer Region, including drilling approximately 43,000 meters, and SAR 8.5 million for community initiatives.

Q13. What is the size and mineral content of the Al-Hijra site?

A13. The Al-Hijra site covers more than 274 square kilometers and includes gold, copper, and zinc deposits.

Q14. What did the Eqleed Group and Indotan Mining Alliance commit for the Makman Hijab site?

A14. The alliance committed over SAR 6.3 million for exploration activities, including drilling 10,000 meters, and SAR 200,000 for community initiatives, with a 90% local purchase commitment.

Q15. What is the size and mineral content of the Makman Hijab site?

A15. The Makman Hijab site in Riyadh Region covers an area exceeding 180 square kilometers and includes deposits of gold and silver ores.

Q16. What did Maaden commit for the Nimas site?

A16. Maaden committed approximately SAR 17.9 million for mining exploration at the Nimas site in Aseer Region, including drilling 28,500 meters, and SAR 1.35 million for community initiatives.

Q17. What is the size and mineral content of the Nimas site?

A17. The Nimas site covers an area of more than 228 square kilometers and contains copper, silver, and gold deposits.

Q18. What did Royal Roads Arabia Company commit for the Al Miyah site?

A18. Royal Roads Arabia Company committed SAR 14.6 million for exploration work at the Al Miyah site in Makkah Region, including drilling 11,600 meters, and around 50% of direct and indirect jobs to neighboring communities.

Q19. What is the size and mineral content of the Al Miyah site?

A19. The Al Miyah site covers an area of 228 square kilometers and includes deposits of copper, silver, and gold.

Q20. What are the ministry’s plans for the sixth round of exploration licensing?

A20. The ministry plans to launch the sixth round in the third quarter of 2024, offering nine sites to encourage more investments and enable small and medium mining companies to participate in developing the mining sector.

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