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49 Projects Qualify for Saudi Arabia's 'Mining Exploration Empowerment Program'

A field visit organized by the Saudi Ministry of Industry for local and foreign companies to mining sites in the Kingdom. (SPA)
A field visit organized by the Saudi Ministry of Industry for local and foreign companies to mining sites in the Kingdom. (SPA)
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49 Projects Qualify for Saudi Arabia's 'Mining Exploration Empowerment Program'

A field visit organized by the Saudi Ministry of Industry for local and foreign companies to mining sites in the Kingdom. (SPA)
A field visit organized by the Saudi Ministry of Industry for local and foreign companies to mining sites in the Kingdom. (SPA)

Forty-nine projects submitted by six local and international companies have qualified in the first round of Saudi Arabia’s “Mining Exploration Empowerment” program.

The program, launched by the Ministries of Industry and Mineral Resources and Investment during the International Mining Conference 2024, aims to enhance the competitiveness and attractiveness of the Kingdom’s mining sector.

In a joint statement, the ministries highlighted the strong interest from both local and international companies. A total of 82 applications were evaluated, submitted by 18 companies, resulting in the preliminary approval of 49 projects from six companies.

These projects align with the program’s goals and participation criteria, with final approvals pending the completion of necessary requirements and procedures.

The program aims to accelerate mining exploration, increase the reliability of technical and geological data, reduce risks for exploration companies during the early stages, and encourage investment in this critical phase of the sector, which is essential to achieving the goals of Vision 2030.

The “Mining Exploration Empowerment” program supports qualified companies by boosting their exploration capabilities within their licensed areas. It covers a total of 4,000 square kilometers, with drilling costs amounting to SAR 179 million ($47.7 million), distributed across diamond and rotary drilling, among other types. Additionally, SAR 12 million ($3.2 million) is allocated for geophysical and geochemical surveys.

The ministries are also preparing for the second phase of the program, set to be announced in January, which will focus on expanding exploration into unexplored areas, particularly for strategic minerals such as copper, lithium, nickel, gold, and iron.

These efforts align with the Kingdom’s broader goals to bolster the mining sector’s investment environment by providing advanced geological data in line with international standards, creating new, attractive investment opportunities for leading global companies.

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Saudi Aramco CEO ‘Fairly Bullish’ on China Oil Demand

Saudi Aramco CEO Amin Nasser speaks at the Singapore International Energy Week (SIEW), Singapore October 21, 2024. (Reuters)
Saudi Aramco CEO Amin Nasser speaks at the Singapore International Energy Week (SIEW), Singapore October 21, 2024. (Reuters)
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Saudi Aramco CEO ‘Fairly Bullish’ on China Oil Demand

Saudi Aramco CEO Amin Nasser speaks at the Singapore International Energy Week (SIEW), Singapore October 21, 2024. (Reuters)
Saudi Aramco CEO Amin Nasser speaks at the Singapore International Energy Week (SIEW), Singapore October 21, 2024. (Reuters)

Saudi Aramco is "fairly bullish" on China's oil demand especially in light of the government's stimulus package which aims to boost growth, the head of the state-owned oil giant said on Monday.

"We see more demand for jet fuel and naphtha especially for liquid-to-chemical projects," Aramco CEO Amin Nasser said on the sidelines of the Singapore International Energy Week conference.

"A lot of it is happening in China mainly because of the growth in chemical needs. Especially for the transition, for the electric vehicles, for the solar panels, they need more chemicals. So that's huge growth there," Nasser said.

Meanwhile, progress in the energy transition in Asia is far slower, much less equitable and more complicated than many have expected, he told the conference, calling for a reset in policies for developing countries.

Even with the transition, as economies expand and living standards rise, the Global South is likely to see significant growth in oil demand for a long time, and while that growth will stop at some point, that is likely to be followed by a long plateau, Nasser said.

"If so, more than 100 million barrels per day would realistically still be required by 2050," he said in a speech at the Singapore International Energy Week conference.

"This is a stark contrast with those predicting that oil will, or must, fall to just 25 million barrels per day by then. Being short 75 million barrels every day would be devastating for energy security and affordability."

Countries should choose an energy mix that helps them meet their climate ambitions at a speed and manner that is right for them, Nasser said. "Our main focus should be on the levers available now."

These include encouraging investments in oil and gas that developing nations need and can afford, and prioritizing the reduction of carbon emissions associated with conventional sources by improving energy efficiency and developing carbon capture, utilization and storage (CCUS).

Despite trillions of dollars being invested in the global energy transition, oil and coal demand are at all-time highs, dealing a "hammer blow" to energy transition plans, he said.

Asia, which consumes over half of the world's energy supplies, still relies on conventional resources for 84% of its energy needs. Rather than displacing demand for conventional energy, alternatives are mostly meeting consumption growth, he said.

The shift to electric vehicles (EV) in Asia, Africa and Latin America is lagging that of China, the US and European Union as consumers struggle with affordability and infrastructure concerns, he said.

The progress of EVs has no bearing on the other 75% of global oil demand, Nasser said, as massive segments like heavy transportation and petrochemicals have few economically viable alternatives to oil and gas.

Developing countries may require almost $6 trillion each year to fund the energy transition, and Nasser called for them to have a greater say in climate policy-making.

"But Asia’s voice and priorities, like those of the broader Global South, are hard to see in current transition planning, and the whole world is feeling the consequences."