Saudi Arabia will begin auctioning off two licenses to mine in then mineral-rich Kingdom starting next year, the vice-minister for mining affairs, Khalid al-Mudaifer, told S&P Global Platts on June 16 in an exclusive interview.
The mining sector in Saudi Arabia has $1.3 trillion in untapped potential reserve value, according to the minister.
$45 billion in private and public sector investments have gone into the mining sector over the last decade.
“We are planning for two major auctions of licenses next year for commodities including gold, copper and zinc,” Khalid al-Mudaifer said on the sidelines of the GPCA Leaders Forum in Dubai, according to S&P Global Platts. The country also has also major resources of phosphate, tantalum, niobium and nickel.
“Going forward, we expect to see an increase in international investment in mining, particularly because demand for minerals around the world is growing fast. According to geological surveys dating back 80 years, the kingdom has an estimated reserve of untapped mining potential valued at $1.3 trillion.”
A total of 15 commercially viable minerals have been identified in the Kingdom of Saudi Arabia. Saudi Arabia’s mining industry has already attracted some major foreign investors.
Al-Mudaifer said that a new mining law, which came into force on Jan. 1, 2021, will help attract more foreign investors because it treats them equally with local investors.
“We have already received a number of applications for exploration licenses from locals and are also in conversations with a number of international mining businesses,” he said.
The mining sector has long been in the crosshairs of Saudi leadership for foreign investment and privatization. The Kingdom’s National Industrial development and Logistics Program was launched at the beginning of 2019 out of the leadership’s belief in the importance of the program’s 4 sectors (Energy, mining, industry and logistics) and via integration to maximize their contribution to the Kingdom’s efforts to grow and diversify the economy.
