Saudi Arabia Unveils Record-Sized Mineralized Belts Spanning Over 4,788km², Invites Global Investors to Exploration Licensing Rounds

Saudi Arabia’s Ministry of Industry and Mineral Resources has announced the launch of its most extensive mineralized belts to date, covering an expansive 4,788 square kilometers that includes five exploration licenses. The Ministry is inviting major mining and exploration companies to participate in the ongoing Exploration Licensing Rounds aimed at unlocking the belts’ vast mineral wealth.

The Ministry, through its official spokesperson, Jarrah bin Mohammed Al-Jarrah, disclosed that the initiative highlights Saudi Arabia’s commitment to fostering a robust mining and minerals sector and creating opportunities for investors to explore the Kingdom’s wealth. He further noted that five exploration licenses are currently available to both local and international mining companies.

These licenses are integral to the Ministry’s strategy of promoting increased exploration investment and aligning with Vision 2030 objectives—aimed at positioning mining as the third pillar of its national industry. These licenses differ significantly from previous licensing rounds, covering areas many times larger than previous exploration sites. They are specifically targeted at high-net asset companies that own developed base metals and precious metals mines.

Saudi Arabia is actively attracting investors with the capacity to regionally explore and discover the next tier-1 large deposits within extensive exploration licenses of around 1,000 square kilometers. The Kingdom is well-positioned to develop new tier-1 sites, thanks to its extensive infrastructure network and availability of competitive financing. The initiative is merit-based rather than revenue-driven, aiming to attract top technical expertise and the best exploration programs to these sites.

The Ministry is calling on major local and international mining and exploration companies to participate in the Exploration Licensing of the following mineralized belts:

·       Three exploration licenses are available at the Jabal Sayad mineralized belt, which covers 2,892 sq kilometers. The belt includes copper, zinc, lead, gold, and silver.

·       Two exploration licenses at Al-Hajjar site in the Wadi Shwas VMS Belt covering 1,896 sq kilometers. The site contains deposits of gold, silver, copper, and zinc.

According to Al-Jarrah, the Jabal Sayad and Al-Hajjar are the largest mineralized belt sites the Kingdom has ever launched. The Jabal Sayid belt, located northeast of Jeddah and east of Madinah, contains two prominent VMS deposits; the Jabal Sayid and Mahd AlThahab Mines, developed on a large world-class deposit, are currently in production, while the Umm ad Damar deposit remains untapped. This copper-rich, volcanic-hosted sulfide belt is categorized as an early exploration site for Zn-Cu-Au VMS deposits. Its location and promising mineral resources highlight its significance for mining and exploration activities.

On the other hand, Al-Hajjar site, situated within the Wadi Shwas VMS Belt in Saudi Arabia’s Asir Terrane, includes two exploration licenses. This region, known for its rich deposits of gold, copper, and zinc, previously hosted a developed mine (Alhajjar mine), which produced approximately 40,000 ounces of gold annually before becoming inactive. The site’s geological features include the Khutnah Formation sedimentary rocks and the Quirshah Formation volcanic rocks, hosting gold-bearing massive sulfide mineralization often associated with copper and zinc.

The spokesperson stated that the bidding process for the exploration licenses would be conducted with utmost transparency and through several stages, starting with the pre-qualification stage from July  to October, 2024. This will be followed by the invitation for qualified bidders to submit technical expertise proposals and the social and environmental impact management plans in December 2024, which will culminate in the announcement of the winner and the grant of the exploration license in January 2025. This comprehensive approach is necessary due to the massive size of the exploration sites up for bidding.

Al-Jarrah reaffirmed the Kingdom’s commitment to providing financial assistance and support to preferred bidders of the belt through the Exploration Enablement Program (EEP). “Under the EEP, the Ministry is dedicated to covering specific costs incurred by mineral exploration companies. The financial assistance includes up to 25 percent of the expenses related to drilling, laboratory testing, and geoscientific studies. Additionally, the EEP will cover up to 15 percent of the salary costs for employees residing in the Kingdom and 70 percent of local salary costs during the first two years of exploration. After this period, the Ministry will cover the entirety of local salary costs, ensuring sustained financial relief as companies continue their exploration activities within the Kingdom,” he said.
Al-Jarrah reaffirmed the Ministry’s commitment to providing all geological data related to targeted belts on the electronic ‘Ta’adeen’ platform. This initiative aims to ensure equal opportunities among all bidders and is expected to boost spending on exploration in the Kingdom. It will also bolster the national geological database with technical information, create new job opportunities, and foster sustainable economic growth. This commitment symbolizes Saudi Arabia’s remarkable resolve to develop the mining sector in alignment with international standards, emphasizing environmental sustainability and social responsibility.

The Arabian Shield, known for its rich mineral resources, contains an extensive number of mineralized belts estimated to be worth 9.5 trillion SAR. This highlights the Kingdom’s potential for significant economic contributions and its position as a global mining and mineral sector player.

Saudi Arabia has established itself as a go-to mining jurisdiction, earning notable recognition in the Mining Journal World Risk Report featuring MineHutte. The Kingdom was recognized for its seamless license permitting process and recently revamped, comprehensive, and attractive regulatory framework—making it a choice destination for investors looking to invest in a safe, stable, and business-friendly environment.

Interested investors are encouraged to visit the mining platform using the following link: https://taadeen.sa/en/mining-bids to learn more about the competition procedures and obtain necessary technical and geological reports for these sites.