Saudi Ministry of Industry Extends Deadline for Submitting Bids for Exploration Licenses for First Mineralized Belts

The Ministry of Industry and Mineral Resources has extended the deadline for qualified bidders to submit proposals for mining exploration in the first mineralized belts in Saudi Arabia. The ministry set January 21, 2025, as a new deadline for the bid submission and pertinent technical work programs for local and international companies qualified to compete for exploration licenses. The extension comes in response to companies’ requests for additional time to complete their procedures.
The exploration licenses concern the Kingdom’s first-of-their-kind mineralized belts in the Jabal Sayid and Al-Hajjar. The qualified companies competing for the licenses encompass leading players in the mining industry, known for their expertise in developing and producing critical minerals essential for future manufacturing industries. These companies include: Zijin Mining Group, Hancock Prospecting, Norin Mining, Ajlan & Bros Mining, IGO Limited, Silvercorp Metals Inc, First Quantum Minerals Ltd., a consortium of Artar & Gold and Minerals, a consortium of Pan African Resources and Saudi Gold Refinery, Vedanta Limited, McEwen Mining Inc., Al-Masane Al-Kobra Mining Co., K92 Mining, and a consortium of Orogen Royalties and Altius Minerals Corporation.
The mineralized belts open for competition cover an area of 4,788 square kilometres, including three license areas in the Jabal Sayid belt spanning 2,892 square kilometres. They comprise a range of base and precious metals, including copper, zinc, lead, gold, and silver. In the Al-Hajjar, there are two exploration license areas situated in the Wadi Shwas belt, covering 1,896 square kilometres. This site is also rich in various precious and base metals, including copper, zinc, gold, and silver.
The ministry stated that the competition for the offered licenses is conducted according to the highest transparency and governance standards throughout the process, including pre-qualification and information memoranda submission. Other stages also include invitations for bids and technical work programs for mining exploration, plans for social and environmental impact, and finally, the announcement of winners of the exploration licenses on February 16, 2025.
The deadline extension is part of the ministry’s efforts to attract more investments and enhance competitiveness in the mining sector. The ministry stated that all geological data related to the aforementioned belts have been made available on the Taadeen Platform to ensure equal opportunities among all competitors. The ministry is looking forward to this step, which will increase spending on mining exploration in the Kingdom, enrich the national geological database with technical information, create new job opportunities, and promote sustainable economic growth. The extension also reaffirms Saudi Arabia’s commitment to developing the mining sector according to the highest global standards, including environmental sustainability and social responsibility.
The Ministry of Industry and Mineral Resources, in collaboration with the Ministry of Investment, has recently launched incentives to enable mining exploration in the Kingdom. These include support for companies holding active exploration licenses for less than five years, with a maximum value of up to SAR7.5 million. These incentives aim to support mining exploration and reduce risks for exploration companies during their initial stages, as well as encourage investment in this vital sector, alongside incentives outlined in the Mining Investment Law, allowing for the establishment of foreign companies at 100%. They also enable obtaining financing of up to 75% of capital costs through the Saudi Industrial Development Fund and receiving discounts of up to 90% on mineral sales for local markets or the development of local manufacturing industries. The Kingdom ensures equal and competitive tax rates for local and international investors.
The ministry announced in July that competition for the first mineral belts in Saudi Arabia would be open to both local and international mining exploration companies. This step is part of the ministry’s efforts to accelerate the exploration and utilization of mineral resources in the Kingdom, estimated to be worth around SAR9.3 trillion.