Future Minerals Forum: Saudi Arabia inks key mining agreements with 4 nations 

Update Future Minerals Forum: Saudi Arabia inks key mining agreements with 4 nations 
Bandar Alkhorayef, Minister of Industry and Mineral Resources, made the announcements during the event. AN Photo
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Updated 10 January 2024
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Future Minerals Forum: Saudi Arabia inks key mining agreements with 4 nations 

Future Minerals Forum: Saudi Arabia inks key mining agreements with 4 nations 

RIYADH: The Saudi Ministry of Industry and Mineral Resources has formalized collaborations in the mining sector by signing memorandums of understanding with four countries during the third international ministerial roundtable. 

The MoUs include agreements for cooperation in the field of mineral wealth with Egypt’s Ministry of Petroleum and Mineral Resources, Morocco’s Ministry of Energy Transition and Sustainable Development, and Congo’s Ministry of Mines of the Democratic Republic.  

Additionally, a separate MoU for cooperation in the field of geology and mineral wealth was signed with Russia’s Ministry of Natural Resources and Environment.

 

Top ministers speak

Saudi Minister of Industry and Mineral Resources, Bandar Alkhorayef, expressed his delight as he announced some significant initiatives, starting with the exploration incentive program in collaboration with the Ministry of Investment, boasting a budget exceeding $182 million, during the event.

“This program will de-risk investments in our exploration securing to enable new commodities, Greenfield projects, and junior miners. In addition and to drive the existing future of the exploration sector, we are announcing the fifth and sixth rounds of licensing programs offering access to 33 exploration sites this year,” he said.

Alkhorayef announced a groundbreaking initiative this year—offering country-sized exploration sites, starting with the 4000 sq. km Jabal Sayid Mineral Belt. He expressed joy in the discovery of rare earth elements and increased volumes in phosphate, gold, zinc, and copper, as well as their revaluation.

“This is only based on 30 percent of the Arabian shield exploration suggesting more to be discovered and it clearly shows that with more investment in exploration, it is possible to maximize the endowment potential,” the minister added.

Abdulaziz Bin Salman, Saudi Minister of Energy 

The minister mentioned that PIF had initiated a voluntary carbon market a year ago. During MENA week, he added that Saudi Arabia also announced the launch of its greenhouse gas crediting and offset mechanism.  

“It is in a pilot phase, and over the next few years, we will develop it and ensure it is in line with the UNFCCC (UN Framework Convention on Climate Change) regulations to make sure that it can become a regional market with its own commitments,” said the energy minister.    

He mentioned that Saudi Arabia is actively transitioning away from fossil fuels, specifically domestically, resulting in the saving of a million barrels.  

”The difference is, we will not stop producing that million, but we will export it in a way that will also be used in a proper manner, so it is a holistic thing.” 

The Saudi minister indicated a return to their comfort zone of globally tripling renewable energy capacity. “By 2030, we will be doing at least 100 and hopefully 130 If demand is there.” 

Khalid Al-Falih, Saudi Arabia's Minister of Investment 

Saudi Arabia’s Minister of Investment Khalid Al-Falih highlighted that addressing the historical challenge of accessing critical minerals for the energy transition will be supported by resources and collaborations across countries, geographies, companies, people, technologies, and various sectors. 

“The demand for materials (critical minerals) is going to be a multiple of what it is today. A lot of existing production facilities will either decline because of the depletion of resources, or because it is not acceptable from a sustainability and environmental standpoint,” he said. 

The minister expressed that the incremental demand, investment, technologies, and efforts to address the inevitable challenge of meeting critical mineral needs are, quite frankly, unprecedented in his lifetime. 

Al-Falih noted that the super region spanning from Central Asia through the Middle East to Africa is recognized to possess at least a third of global resources. 

“We are going to need trillions of dollars in the next couple of decades to meet the reshaping of the global supply chain in the industry. And I believe Saudi Arabia is going to be at the heart of this, we are going to be leading this within the super region,” the minister added. 

Yasir Al-Rumayyan, Governor of the Public Investment Fund 

Speaking at the same event, Yasir Al-Rumayyan, governor of the Public Investment Fund, expressed that Saudi Arabia is making every effort, but "we don't have all kinds of minerals that we need for our future initiatives and to bring in, you know, the supply chain security.”  

He explained that they established Maaden, a joint venture with PIF at 50 percent, known as Manara Minerals.  

Al-Rumayyan noted that Manara Minerals is dedicated to acquiring minerals not available in Saudi Arabia. 

The governor mentioned their existing investment in Vale, a substantial company, and outlined their plans to invest between $25 to $30 billion in various jurisdictions over the next decade.  

Now, in collaboration between Maaden, the Ministry of Industry and Mineral Resources, and King Fahd University of Petroleum and Minerals, a new program for the first bachelor’s degree in mining science and engineering has been initiated, he revealed.  

This program includes artificial intelligence as a part of its curriculum, incorporating the uses of AI in metal science and engineering, stated Al-Rumayyan.  

“So, for us at the PIF, we think that mining is really a big opportunity for all the investment community. The electric vehicle requires six times more minerals and inputs than the internal combustion engine or the conventional cars,” he said, adding that estimates suggest a potential increase by a factor of 46. 

“But I think if we want to move toward the net zero carbon emission, the demand in there will be even bigger, but it’s like a vicious cycle.” 

The PIF governor expressed the desire for oil and gas companies to emulate the initiatives implemented in Aramco.  

“That’s why we started our first initiative and Maaden to get the energy and the power that we need through renewable energy. We’re now talking with companies like ACWA Power to see how we can align our efforts toward net zero energy,” said Al-Rumayyan.


Dogecoin soars as Trump announces a government efficiency group nicknamed DOGE

Dogecoin soars as Trump announces a government efficiency group nicknamed DOGE
Updated 14 November 2024
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Dogecoin soars as Trump announces a government efficiency group nicknamed DOGE

Dogecoin soars as Trump announces a government efficiency group nicknamed DOGE
  • Dogecoin got a bump after US President-elect Trump named Tesla’s Elon Musk as one of the heads of a new “Department of Government Efficiency,” which is not a government agency but does have the acronym DOGE

NEW YORK: Wow, much bull market.
Dogecoin, the cryptocurrency whose mascot is a super-cute dog that muses things like “much wow,” has been racing higher in value since Donald Trump won the presidential election last week. It got another bump after Trump named Tesla’s Elon Musk as one of the heads of a new “Department of Government Efficiency,” which is not a government agency but does have the acronym DOGE.
All this makes sense and is maybe humorous for anyone who’s chronically online. For others, here’s some explanation about what’s going on:
What is dogecoin?
It’s a cryptocurrency, whose value rises and falls against the US dollar based on however much people will pay for it.
At first, it was seen as a joke. But over time, dogecoin has amassed a group of fans who have periodically sent its price soaring. Like other cryptocurrencies, supporters say it could be used to buy and sell things on the Internet without having to worry about a central bank or government affecting how many are in circulation.
How much has dogecoin climbed?
One dogecoin — which is pronounced dohj-coin — was worth less than 16 cents just before Election Day. It’s since more than doubled to nearly 38 cents, as of Wednesday afternoon, according to CoinDesk. It briefly got above 43 cents earlier Wednesday.
Why is it climbing so much?
Cryptocurrencies have generally been shooting higher since Trump’s election. Bitcoin, which is the most famous digital currency, has set an all-time high above $93,000 after starting the year below $43,000.
Excitement is racing because Trump has embraced crypto and said he wants the United States to be the “crypto capital of the planet” and create a bitcoin “strategic reserve.”
What does Elon Musk have to do with any of this?
Musk has become one of Trump’s close allies. He’s also been one of the most famous fans of dogecoin. In 2021, Musk played a character on “Saturday Night Live” who went by the nickname, the “Dogefather.”
In 2022, Musk made more headlines when he suggested Twitter should perhaps accept dogecoin as payment for subscriptions.
It all came to a head Tuesday, when Trump announced the “Department of Government Efficiency,” which will work from outside the government to offer the White House “advice and guidance” and will partner with the Office of Management and Budget to “drive large scale structural reform, and create an entrepreneurial approach to Government never seen before.”
It has the acronym DOGE, which is also the ticker symbol under which dogecoin trades. Musk will lead it, along with former GOP presidential candidate Vivek Ramaswamy.
This all sounds weird.
Dogecoin’s history is interesting.
In 2021, on April 20, dogecoin fans tried but failed to get its value above $1 on what they were calling “Doge Day.”
April 20 has long been an unofficial holiday for marijuana devotees, and Musk himself has referred to 420 several times in his career, including his tweet in 2018 saying he had secured funding to take Tesla private at a price of $420 per share.
Is the Shiba Inu whose picture is in the meme getting special treats because of all this?
Sadly, no. The dog, whose real name was Kabosu, passed away in Japan earlier this year at 18 years old. Much rest, may she have.


Number of active mining licenses in Saudi Arabia reaches 2,295

Number of active mining licenses in Saudi Arabia reaches 2,295
Updated 13 November 2024
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Number of active mining licenses in Saudi Arabia reaches 2,295

Number of active mining licenses in Saudi Arabia reaches 2,295
  • The goal is to transform mining into the third pillar of the national industry and leverage the Kingdom’s vast mineral wealth, estimated at around SR9.3 trillion

RIYADH: Saudi Arabia’s Ministry of Industry and Mineral Resources issued 35 new mining licenses in September, the Saudi Press Agency reported on Wednesday citing the National Center for Industrial and Mining Information.

These permits included 24 exploration licenses, seven quarry licenses for building materials, three reconnaissance licenses, and 1 mining exploitation and small mine license.

Official spokesperson for the ministry, Jaraah bin Mohammed Al-Jaraah, explained that by the end of September 2024, the total number of active mining licenses in the sector had reached 2,295. The majority of these licenses are quarry licenses for building materials, with 1,461 issued, followed by 566 exploration licenses, 203 mining exploitation and small mine licenses, 42 prospecting licenses, and 23 surplus mineral resource licenses.

Al-Jaraah emphasized that the Ministry of Industry and Mineral Resources is focused on protecting and enhancing the value of the mining sector in alignment with Saudi Arabia’s Vision 2030. The goal is to transform mining into the third pillar of the national industry and leverage the Kingdom’s vast mineral wealth, estimated at around SR9.3 trillion.


Saudi Arabia’s CMA approves regulatory changes to strengthen debt market

Saudi Arabia’s CMA approves regulatory changes to strengthen debt market
Updated 13 November 2024
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Saudi Arabia’s CMA approves regulatory changes to strengthen debt market

Saudi Arabia’s CMA approves regulatory changes to strengthen debt market

RIYADH: Saudi Arabia’s Capital Market Authority has approved its largest regulatory overhaul to date for the sukuk and debt instruments market, marking a significant step in the country’s financial sector development.

The newly approved changes introduce key amendments to the rules on the offer of securities and continuing obligations, particularly related to the issuance of debt instruments.

These adjustments simplify prospectus requirements for public, private, and exempted offerings, streamlining the process and reducing regulatory burdens.

These changes will take effect as soon as they are published and are designed to attract a wider range of issuers and foster deeper investment in the market.

“By facilitating the listing requirements for debt instrument, we are increasing the attractiveness of the local debt capital market to drive increased participation from issuers and investors,” Mohammed Al-Rumaih, CEO of the Saudi Exchange, said.

The amendments to the listing rules of debt instruments mark a significant milestone in the continued development of Saudi Arabia’s debt capital market, further reinforcing our commitment to building a globally competitive and sophisticated debt capital market.”

The reforms aim to strengthen Saudi Arabia’s regulatory framework for debt instruments, creating a more dynamic and accessible market. Notably, the amendments allow the Kingdom’s development funds, sovereign wealth funds, and development banks to issue debt instruments through exempt offerings, subject to specific conditions.

This flexibility will enable these institutions to better align their financing strategies with Saudi Arabia’s broader development goals.

“As we move forward, the Saudi Exchange remains focused on providing a robust platform for debt financing that supports the Kingdom’s Vision 2030 ambitions, specifically the Financial Sector Development Program aspirations in deepening the debt capital market,” Al-Rumaih said.

The new regulations also simplify the documentation process for public offerings, reducing prospectus requirements by more than 50 percent.

A dedicated section for public offerings will improve regulatory clarity, ensuring that all material information is disclosed to investors while maintaining investor protection.

In addition to easing public offering requirements, the changes introduce more flexibility for private offerings. The CMA has eliminated the prior requirement for advance notification before launching an offering.

Issuers can now notify the CMA and immediately proceed with their offerings, a change that is expected to expedite the financing process and improve efficiency.

These regulatory enhancements are part of Saudi Arabia’s broader efforts to develop its sukuk and debt markets as a crucial funding channel for businesses.

By improving access to financing, the reforms are expected to drive greater economic growth and help position the sukuk and debt markets as central components of the Kingdom’s financial ecosystem.

The reforms align with Saudi Arabia’s Vision 2030 strategy, which seeks to diversify the economy and enhance the capital markets. They also reflect the CMA’s ongoing commitment to improving market transparency, protecting investors, and increasing market participation.

In parallel, the CMA recently invited public feedback on amendments to the investment funds regulations, which are also part of efforts to refine the framework for private and foreign investment funds, particularly in retail markets. These changes aim to better protect retail investors, addressing risks that emerged from a 2021 regulation allowing individual retail investments up to SR200,000 ($53,245).

The consultation period for these proposed changes will run for 30 calendar days.

With these far-reaching regulatory reforms, Saudi Arabia is poised to further strengthen its sukuk and debt markets, positioning them as key drivers of economic growth and investment. The CMA’s efforts to enhance transparency and investor protection are expected to boost both domestic and international confidence in the Kingdom’s financial markets.


Saudi PIF to offer 2% of Saudi Telecom Co. shares to investors

Saudi PIF to offer 2% of Saudi Telecom Co. shares to investors
Updated 13 November 2024
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Saudi PIF to offer 2% of Saudi Telecom Co. shares to investors

Saudi PIF to offer 2% of Saudi Telecom Co. shares to investors
  • Goldman Sachs Saudi Arabia and SNB Capital are acting as joint global coordinators and bookrunners for PIF
  • Remaining shares held by PIF represent 62% of the firm’s issued share capital

RIYADH: Saudi Arabia’s Public Investment Fund has announced the offering of 2 percent of its Saudi Telecom Co.’s stake, amounting to 100 million shares, to qualified institutional investors locally and globally.

Goldman Sachs Saudi Arabia and SNB Capital, acting as joint global coordinators and bookrunners for PIF, announced that the share price, or offer rate, would be determined through an accelerated book-building process, according to a statement on the Saudi Stock Exchange.

This falls in line with PIF’s vision, which has about $925 billion assets under management, of becoming a global investment powerhouse and the world’s most impactful investor, enabling the creation of new sectors and opportunities that will shape the future global economy, while driving the economic transformation of Saudi Arabia.

The Tadawul statement said that following the completion of the offering, the remaining shares held by PIF in the company, representing 62 percent of the firm’s issued share capital, will be subject to a 90-day contractual lock-up undertaking.

The company will not receive any proceeds from the issuance, and the offering will not dilute the shares of the organization’s additional shareholders.

The statement also said that the final number of offer shares, price, and results will be announced by Nov. 14. 

The sale will be executed through off-market negotiated deals on Nov. 14 before market opening, under the Negotiated Deals Framework stipulated under the Trading and Membership Procedures issued by the Saudi Exchange.

The offering will be available to institutional investors within the Kingdom, qualified foreign institutional backers in line with the Rules for Foreign Investment in Securities, and institutional beneficiaries of swap agreements made with a Capital Market Authority-authorized person to trade shares on the Saudi Exchange on their behalf. 

It will also be open to Gulf Cooperation Council investors, including companies and funds authorized to trade in Saudi shares.


Closing Bell: Saudi Arabia’s TASI closes in red, down 0.97%

Closing Bell: Saudi Arabia’s TASI closes in red, down 0.97%
Updated 13 November 2024
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Closing Bell: Saudi Arabia’s TASI closes in red, down 0.97%

Closing Bell: Saudi Arabia’s TASI closes in red, down 0.97%
  • MSCI Tadawul 30 Index declined 15.60 points to close at 1,500.54 points
  • Parallel market Nomu closed the day at 29,205.53 points, reflecting an increase of 95.12 points

RIYADH: The Tadawul All Share Index in Saudi Arabia concluded Wednesday’s trading session at 11,930.45 points, marking a decrease of 117.22 points or 0.97 percent. 

MSCI Tadawul 30 Index also declined 15.60 points to close at 1,500.54 points, a 1.03 percent decrease. 

The parallel market Nomu closed the day at 29,205.53 points, reflecting an increase of 95.12 points, or 0.33 percent.

TASI reported a trading volume of SR5.540 billion ($1.474 billion), with 52 stocks gaining and 178 falling.

The best-performing stock was Shatirah House Restaurant Co., whose share price surged 10 percent to SR20.24.  

Other top performers include Saudi Cable Co. and Alkhaleej Training and Education Co., whose share prices soared by 5 percent and 4.08 percent to SR88.20 and SR30.60, respectively.

Other top performers include Bawan Co. and Middle East Specialized Cables Co.

The worst performer was Ash-Sharqiyah Development Co., whose share price dropped by 5.18 percent to SR19.40.

Other worst performers were United International Transportation Co. and National Medical Care Co., whose share prices dropped by 3.87 percent and 3.33 percent, respectively, to stand at SR79.50 and SR168.60.

Saudi Tadawul Group Holding Co. was another worst performer, whose share price dropped by 3.08 percent to SR232.60.   

On the parallel market Nomu, Leaf Global Environmental Services Co. was the top gainer, with its share price surging by 8.68 percent to SR98.90.

Other top gainers on the parallel market were Fad International Co. and Al Mohafaza Co. for Education, with their share prices surging by 7.24 percent and 6.04 percent to reach SR81.50 and SR28.10, respectively.

Rawasi Albina Investment Co. and Amwaj International Co. were the other top gainers on Nomu.

Al-Razi Medical Co. was the major loser on this market, as the company’s share price slipped by 7.98 percent to SR47.85.  

First Avenue for Real Estate Development Co. and Obeikan Glass Co. were other major losers on Nomu, with share prices dropping by 6.18 percent and 6.01 percent, reaching SR8.35 and SR49.25, respectively.