Saudi Arabia announces three finalists for license to explore mining opportunities at the country’s largest site to date

The Saudi Ministry of Industry and Mineral Resources (MIM) today announced the final three competitors for a mining exploration license for the Kingdom’s largest site made available to date, Khnaiguiyah, which is approximately 175 kilometers west of Riyadh. The three companies that will now enter the final stage of the license application are: a consortium between Alara Saudi Ventures Pty. Ltd. Resources and AlTasnim Enterprises LLC, a consortium between Saudi Arabian Mining Company “Maaden” and Ivanhoe Electric Inc., and a consortium between Moxico Resources Plc, and Ajlan & Bros Mining Company.

MIM received numerous inquiries and 6 world-class proposals from companies around the world seeking to explore the site, and the Ministry is look forward to the third and final stage of the license application process, which will be kicked off on September 4th.

The Khnaiguiyah licensing process is an example of how the Ministry has transformed Saudi Arabia’s mining sector by pursuing investment to understand the potential of its geological assets, and creating an overall mining ecosystem that operates efficiently, transparently and fairly. To illustrate, the multi-round auction on a signing bonus will be available for viewing online at: YouTube

In addition to the elements directly related to exploration and mining experience– and another important demonstration of the Ministry’s transformation efforts and focus on ESG – Bidders competed in their social programs in support of their proposals. This included improvements to the local community healthcare and education facilities, and commitments to create jobs and develop training programs for local residents.

The finalists for the Khnaigiuyah licensing round are benefiting from Saudi Arabia’s position as one of the most competitive mining jurisdictions in the world. In addition to the fair and transparent application and review process, the Kingdom offers unrivalled incentives to attract investors across the entire integrated mining value chain. This includes co-funding of up to 75 percent of CAPEX through the Saudi Industrial Development Fund (SIDF), a five-year royalty holiday for miners, and a 30 percent reduction on royalty payments for further downstream processing of production.

It is worth mentioning that the Khnaigiuyah site covers more than 350 kilometers with an estimated resource of around 25 million tonnes of Zinc & Copper Ores, at 4.11% Zn, and 0.56% Cu. Developing the site will mark an important milestone in transforming the sector into the third pillar of the national economy under the National Industrial Development and Logistics Program and Saudi Arabia’s Vision 2030.