Saudi Arabia has announced the opening of bids for exploration licenses at seven new mining sites, according to the state-run Saudi Press Agency (SPA). The sites, which span nearly 1,000 square kilometers and are rich in precious and base metals like gold, silver, copper and zinc, are part of the kingdom’s strategy to diversify its economy and reduce reliance on oil revenues.
The Saudi Ministry of Industry and Mineral Resources revealed the initiative on Wednesday, inviting proposals from interested parties by early September 2024. This move is crucial for Saudi Arabia’s Vision 2030, aimed at boosting the mining sector’s contribution to the national economy, valued at SAR9.3 trillion ($2.5 trillion).
Key mining locations
The seven sites available for bidding are distributed across various regions of Saudi Arabia and hold significant mineral deposits:
- Umm Qasir in Riyadh: 20 square kilometers with gold, silver, lead, and zinc.
- Jabal Sabha in Riyadh: 171 square kilometers with silver, lead, zinc, and cobalt.
- Wadi Ad Dawsh in Aseer: 157.7 square kilometers with gold, silver, and copper.
- Shaib Marqan in Riyadh: 92 square kilometers with gold, silver, and copper.
- Wadi Al Junah in Aseer: 425.37 square kilometers with copper, silver, zinc, and gold.
- Hazm Shubat in Aseer: 93.47 square kilometers with gold.
- Huwaymidan in Makkah: 34 square kilometers with gold.
Ma’aden’s dominance
The Saudi Arabian Mining Company (Ma’aden) is a major player in the kingdom’s mining sector. It operates several key sites, including:
- Al Duwaihi Mine in Makkah: Produced 174,799.86 ounces of gold in 2022.
- Al Amar Mine: Known for gold, copper, and zinc, with 27,443.42 ounces of gold produced in 2022.
- Bulghah and Sukhaybarat Mines: Together produced 74,372.25 ounces of gold in 2022.
- As Suq Mine: Yielded 17,042.39 ounces of gold in 2022.
- Mahd Ad Dhahab Mine: Produced 29,566.34 ounces of gold last year.
- Mansourah and Massarah Mine: Began production in 2022 with a capacity of 250,000 ounces of gold annually.
Joint ventures and expanding sector
Ma’aden also operates the Jabal Sayid copper mine in partnership with Barrick Gold Corporation. In 2022, this mine processed 2.732 million tonnes of ore, producing 150.7 million pounds of copper.
Saudi Arabia has significantly increased its estimates of untapped mineral resources, now valued at $2.5 trillion, up from $1.3 trillion in 2016. The kingdom has made substantial progress in attracting investment, securing $20 billion in deals at its annual minerals forum in January 2023.
Economic diversification and Vision 2030
As part of Vision 2030, Saudi Arabia aims to diversify its economy by developing the mining sector, with a goal to triple its contribution to the national GDP by the end of the decade. Gold mining is seen as a key driver of this diversification, promising substantial revenue and foreign investment.
Currently, the top gold-producing countries include China, Russia, the US, Australia and Canada.
