Breaking oil dependency: Saudi Arabia unveils $182 million incentive programme for mineral exploration

On January 10, 2023, a senior government official stated that Saudi Arabia had initiated a $182 million incentive program for mineral exploration. This move is a part of the country's broader efforts to diversify its economy and reduce dependence on oil.

The kingdom is actively pursuing the expansion of its mining sector to harness extensive deposits of phosphate, gold, copper, and bauxite.

Future Minerals Forum

While speaking at the Future Minerals Forum, Bandar Alkhorayef, the Minister of Industry and Mineral Resources, said, "This programme will de-risk investments in our exploration, securing to enable new commodities, greenfield projects and junior miners."

During this week's industry event in Riyadh, agreements totalling 75 billion riyals ($20 billion) are anticipated to be finalised, along with the announcement of the fifth and sixth rounds of a licensing program granting access to 33 exploration sites this year. As the leading global oil exporter, Saudi Arabia is implementing Vision 2030, a comprehensive economic transformation plan to reduce dependence on hydrocarbons and foster the growth of sectors such as tourism, industry, and mining to strengthen the non-oil GDP.

Yasir Al Rumayyan, the Governor of PIF, said at the forum, "We have the largest exploration program in the world...we look at mining not only (as) mining for minerals and mining resources but also data mining."

The Ministry of Industry and Mineral Resources has revealed the roster of favoured bidders in the fourth instalment of mining licensing rounds under the Accelerated Exploration Program initiative, as the state news agency SPA reported.

Saudi Arabia intends to grant global investors over 30 mining exploration licenses in the upcoming year. There is also a possibility of providing larger exploration areas exceeding 2,000 square kilometres for each granted license.

At the Future Minerals Forum in Riyadh, Saudi Arabia, memorandums of understanding (MOUs) have been formally signed to establish collaborative efforts in mining between Saudi Arabia and Egypt, Russia, Morocco, and the Democratic Republic of Congo.

Source: https://www.alcircle.com/news/breaking-oil-dependency-saudi-arabia-unveils-182-million-incentive-programme-for-mineral-exploration-104590