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Saudi Arabia grants exploratory rights to six mining sites

The new Saudi mining concessions cover sites that contain copper, zinc, gold, lead and other metals Pexels/Tom Fisk
The new Saudi mining concessions cover sites that contain copper, zinc, gold, lead and other metals
  • 890 sq km total area
  • Saudi and global companies
  • Further auctions planned

The Saudi Ministry of Industry and Mineral Resources has allocated mineral exploration rights for six mining sites with a combined size of 890 sq km, according to the Saudi Press Agency.

On Tuesday, the ministry announced that mining company Amak has been granted three exploratory concessions in Jabal al Khallah North (98 sq km) and Jabal al Khallah South (19 sq km), which are both in Riyadh Province, and Jabal al Daama (210 sq km) in Makka Province. All three are thought to contain silver, zinc and lead deposits.

A consortium of Gold and Minerals Limited Company and Artar won the concession for Um Ajlan (78 sq km) in Riyadh, which is thought to contain copper, zinc and gold, while a partnership between the Indian company Skylark and the Arabian Gulf Mining Company was granted the rights to Wadi al-Laith (243 sq km). Also in Riyadh, the latter site is thought to have copper, zinc and gold deposits.

The largest concession, Jabal Baydan (244 sq km), which is in the Hijaz Mountains and thought to contain copper, gold, zinc, silver and lead, was granted to the Canadian company Power Nickel.

The combined cost of the concessions was SAR126 million ($33.6 million), and companies are obliged to spend an additional SAR9 million to develop communities near the sites.

The ministry said it received 24 bids from 11 local and international companies. 

The ministry has also said it plans to launch an auction for the exploration of a further 50,000 sq km. It is likely to announce details about the concessions during the Future Minerals Forum in Riyadh, which began on Tuesday and will run until Thursday.

Speaking at the opening day of the event, minister of industry and mineral resources Bandar Alkhorayef reaffirmed Saudi Arabia’s commitment to developing its mining sector. 

During the opening of the ministerial meeting, which received delegates from 85 countries, Alkhorayef said that the world needs to invest $6 trillion in the industry over the next 10 years.