In a ground-breaking development for Saudi Arabia's mining sector, the Ministry of Industry and Mineral Resources has announced the awarding of exploration licenses to several local and international companies for the first batch of mining projects in the Kingdom. The designated areas, located around Jabal Saed and Al-Hajjar, cover a massive total of 4,788 square kilometers. This initiative is part of the Ministry's plan to accelerate mineral resource exploration amid estimates that these resources could be worth up to 9.3 trillion riyals.
Among the winning companies is Ajlan Noreen & Brothers for Development, which secured a license for the southern Al-Hajjar site. In a noteworthy collaboration, the alliance of Artar Company, Al-Dhahab and Minerals Limited, and Hancock Prospecting, an Australian company, was granted a license for exploration of the northern Al-Hajjar area. Furthermore, the Indian mining giant Vedanta Limited obtained the first exploration license in the Jabal Saed region.
The competition drew a total of 14 bids from various companies and alliances that passed the initial qualification stage. Each proposal was meticulously evaluated based on factors such as technical expertise, offered work programs, and the proposed social and environmental commitments.
The Jabal Saed site, extending over 2,892 square kilometers, is rich in essential minerals, including copper, zinc, lead, and silver. Similarly, the Al-Hajjar site stretches over 1,896 square kilometers and is expected to yield significant quantities of copper, zinc, lead, and silver as well.
Significantly, this bidding process marks the first time that major international mining companies are being granted licenses to operate in Saudi Arabia's mining sector, a testament to its burgeoning attractiveness. Companies such as Zijin Mining, Hancock Prospecting, and Vedanta Limited are recognized among the largest mining corporations globally, enhancing confidence in the potential opportunities available in the Saudi mining landscape.
The Ministry of Industry and Mineral Resources underscored the potential economic impact of this exploration initiative. The total exploration expenditure by the selected companies is projected to exceed 366 million riyals over the next three years. Furthermore, these companies have pledged to invest more than 22 million riyals in developing local communities surrounding the mining sites, thus creating job opportunities for the residents.
Among the commitments made by the companies, Ajlan Noreen & Brothers will invest approximately 209 million riyals in the southern Al-Hajjar site, performing over 119,000 meters of drilling. They also pledged an additional 11.2 million riyals for community initiatives, which include the construction of girls' schools in nearby towns.
Meanwhile, the Artar and Al-Dhahab alliance will allocate more than 62 million riyals for exploration activities in the northern Al-Hajjar site with a drill depth of about 52,000 meters. They are also committing around 4 million riyals towards local community projects aimed at enhancing regional infrastructure.
Vedanta Limited has committed 33 million riyals for exploration activities in the Jabal Saed 1 site, which involves drilling around 22,000 meters, alongside contributing 3 million riyals towards community initiatives aimed at training and employing local residents near the site. In addition, the combination of Ajlan Noreen and Zijin Mining will also spend approximately 62 million riyals on exploration at Jabal Saed 2, which includes 51,000 meters of drilling and an investment of 4 million riyals in developing local road infrastructure.
As part of their broader commitments to foster the mining sectors, the Ministry also launched the second phase of their program encouraging mineral exploration. This initiative works in conjunction with the Saudi Ministry of Investment to provide essential support and mitigate the risks associated with starting exploration activities.
Saudi Arabia is extending further incentives within the mining investment system, allowing for the establishment of companies with 100% foreign ownership, and the ability to receive up to 75% financing for capital costs through the Saudi Industrial Development Fund. These advancements are pivotal to achieving the comprehensive strategy for the mining and mineral industries sector, which aligns closely with Saudi Vision 2030—aiming to maximize the use of mineral wealth while bolstering the mining sector's role as a cornerstone of national economic development.
Notably, at the fourth International Mining Conference held in January 2025, the Ministry announced a forthcoming offer of approximately 50,000 square kilometers of mining areas rich in gold, copper, and zinc, intended to foster exploration and create a favorable investment climate for both local and international mining enterprises to contribute to the prosperity and sustainability of the Saudi mining sector.
