Saudi Arabia has announced a substantial financial boost for investors in its mining sector, providing a package that reaches almost SR685 million ($182 million) to stimulate financial engagement in mining exploration within the nation.
The Industry and Mineral Resources Ministry unveiled the initiative that is set to propel support for mining exploration endeavors in the Kingdom.
In partnership with the Ministry of Investment, these measures are crafted to mitigate risks for explorers in their early stages, thereby encouraging investments that are in line with the ambitions of Vision 2030, as the Saudi Press Agency has conveyed.
The ministry explained that this all-encompassing financial support program is tailored to back companies and investors who are exploring mineral resource opportunities in Saudi Arabia. This initiative is seen as a major leap towards sectoral growth.
The government is also keen on prioritizing investors that are committed to developing local skills and know-how, which is essential for the sustainable progression of the mining industry.
Additionally, the new scheme includes provisions for companies with exploration licenses not older than five years, offering support of up to SR7.5 million for each license.
The ministry clarified that a single company might receive backing for a maximum of 15 licenses, given adherence to the program’s regulations. Interested entities are invited to utilize this offering through the mining portal, taadeen.sa.
This collaborative initiative with the Ministry of Investment is anticipated to catalyze greenfield exploration and draw in investments for the Kingdom’s burgeoning mineral sector.
According to the Industry Ministry, exploration activities should focus on vital minerals like copper, lithium, and rare earth elements, which include a suite of 17 chemically akin metals.
The agency emphasized the importance of directing efforts towards less explored regions or overlooked critical minerals, noting that applying investors must possess the necessary expertise and a proven history in greenfield exploration. Moreover, there’s an expectation for them to contract local service providers.
With these strategic moves, Saudi Arabia’s mining sector is poised to become a cornerstone of the Kingdom’s industrial framework, standing alongside the oil, gas, and petrochemical giants.