RIYADH: Mining firms are being invited to bid for 12 licenses for building materials quarries in the new Jeddah Crushes Complex in the Makkah Al-Mukarramah region.
The Ministry of Industry and Mineral Resources is offering five licenses for ore and gravel, and seven for backfill materials.
The ministry is set to receive applications starting Jan. 30 until Feb. 16, Al-Eqtisadiah reported.
Through the announcement, the ministry aims to regulate competition procedures for obtaining building material quarries licenses as well as enhance transparency and fairness in offering mining competitions.
In addition to this, the ministry also aims to support investors and promote investment in the mining sector, in addition to encouraging national industries and contributing to the development of domestic content.
Earlier in January, the MIMR launched the second edition of the Future Minerals Forum with the aim of untapping potential mining opportunities from Africa all the way to West and Central Asia.
The Kingdom’s mining sector is witnessing a rapid transformation and is attracting investors from around the globe since the launch of a new mining law earlier this year.
According to geological surveys dating back 80 years, the Kingdom is thought to have an estimated reserve of untapped mining potential valued at $1.3 trillion.
However, with the prices of valuable minerals rising, especially gold, copper and zinc, the true value of the Kingdom’s current mineral wealth could be double that figure, CEO of the Saudi Geological Survey Abdullah Al-Shamrani said in September 2022.
The Future Minerals Forum saw the announcement of Saudi Arabian Mining Co. forming a joint venture with the Kingdom’s sovereign wealth fund to invest in mining assets globally.
Also known as Ma’aden, the Gulf’s largest miner will own 51 percent of the venture while the Public Investment Fund will own 49 percent.
Ma’aden said the new venture’s strategy “will initially be to invest in the iron ore, copper, nickel and lithium sectors as a non-operating partner taking minority equity positions.”
The new company’s initial paid-up capital will amount to SR187.5 million ($50 million), of which Ma’aden will finance SR96 million as its share of the investment.
Ma’aden and PIF agreed to contribute additional funding of up to SR11.95 billion if required by way of capital increases or otherwise as the business of the new company develops.
