To promote the development of the mineral exploration industry, the Saudi Arabian Ministry of Industry and Mineral Resources has recently formulated a $182 million mineral exploration incentive plan and plans to issue more than 30 mining exploration licenses to international investors this year.
Senior Saudi government officials have stated that this is part of Saudi Arabia’s efforts to develop a non oil economy, and Saudi Arabia is committed to providing minerals to the world.
Saudi Arabian Minister of Industry and Mineral Resources, Bandar Khurayev, previously announced that the valuation of undeveloped mineral reserves in Saudi Arabia has increased by approximately 90% from $1.3 trillion in 2016 to $2.5 trillion.
Saudi Arabia has abundant mineral resources, with over 30 types of metal minerals discovered, among which gold reserves are the most abundant. According to Saudi Arabia’s 2030 Vision, the government hopes to attract $170 billion in investment in the mining industry by 2030, making it the third largest pillar industry after petroleum and chemical industries.
In recent years, Saudi Arabia has introduced a series of policies to promote mining development. In 2019, Saudi Arabia established a new Ministry of Industry and Mineral Resources. In 2021, the new version of Saudi Arabia’s Mining Investment Law came into effect, encouraging private capital to enter the mining industry. Last year, the Saudi Public Investment Fund established a joint venture with the Saudi mining company to invest in mining globally. In July of last year, it spent $2.6 billion to purchase a 10% stake in Vale Metals of Brazil.
Saudi Arabia is continuously increasing its exploration efforts for its mineral resources. In December 2022, the China Geological Survey won the bid for the “Fine Geological Mapping of the Saudi Arabian Shield” project. Within an area of 600000 square kilometers in the Saudi Arabian Shield area, the project aims to promote mineral exploration and search for new ore-forming geological bodies. The scale of 1:100000 geological mapping will be carried out, with a project period of 11 years (2023-2033).
Saudi mining company recently announced that a potential large high-grade gold deposit has been discovered within a range of over 100 kilometers near the Mansula Massara gold mine in central western Saudi Arabia, with an estimated total gold deposit belt length of 125 kilometers. This is the company’s first major discovery since launching a large-scale exploration program in 2022, and the company will further increase its exploration activities near the Mansula Massara gold mine this year.
Saudi Arabia has also hosted the Future Mineral Forum for three consecutive years to promote industry development and cooperation. The third Future Mineral Forum held in January this year attracted over 16000 representatives from 145 countries and regions worldwide, and more than 250 guests gave speeches or participated in discussions. During the forum, Saudi Arabia signed mining cooperation agreements with Russia, Egypt, Morocco, and the Democratic Republic of Congo.
Saudi Arabia’s efforts to develop mining have shown initial results. According to statistics, in 2022, the revenue of Saudi Arabia’s mining industry reached 1.4 trillion riyals (1 Saudi riyal is approximately 1.92 yuan), an increase of 63% from the previous year, making it the sector with the largest contribution to the economy in the non oil industry.
The cooperation in the mining industry between China and Saudi Arabia has broad prospects. During his recent visit to China, Bandar Khurayev stated that Saudi Arabia has abundant mineral resources, but the level of development is relatively low. To fully utilize these resources, create new growth points and employment opportunities, and achieve diversified economic structure, Saudi Arabia will actively seek cooperation opportunities. Saudi Arabia is taking a series of measures to simplify investment procedures, improve investment environment, and welcomes China to increase investment in Saudi Arabia’s mining sector.
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