Saudi Arabia to Tender First Mining License for Mineral Exploration

Saudi Ministry of Industry and Mineral Resources announces landmark Licensing Round as key milestone of the first Future Minerals Forum, Asharq Al-Awsat
Saudi Ministry of Industry and Mineral Resources announces landmark Licensing Round as key milestone of the first Future Minerals Forum, Asharq Al-Awsat
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Saudi Arabia to Tender First Mining License for Mineral Exploration

Saudi Ministry of Industry and Mineral Resources announces landmark Licensing Round as key milestone of the first Future Minerals Forum, Asharq Al-Awsat
Saudi Ministry of Industry and Mineral Resources announces landmark Licensing Round as key milestone of the first Future Minerals Forum, Asharq Al-Awsat

In line with Saudi Arabia’s Vision 2030 objective of diversifying its economy and growing mining to become the third pillar of its industrial growth, the country’s Ministry of Industry and Mineral Resources (MIM) announced the launch of a licensing round for a mineral exploration license in respect of the Khnaiguiyah deposits.

The announcement was made during the third and last day of the Futures Minerals Forum held in Riyadh.

Commenting on this tender, Abdullah bin Mufter Al-Shamrani, CEO of Saudi Geological Survey (SGS), said the ministry expected that the SAR 2 billion Khnaiguiyah project to provide 2,000- 3,000 direct and indirect job opportunities and contribute to the development of the zinc and copper industries in the country.

Extensive exploration works have been carried out in the Khnaiguiyah district over the past few years through 3 exploratory campaigns, with more than 100,000 meters drilled. Moreover, a 3D geological model recently developed by SRK Consulting, according to the ministry's data was finalized.

SGS stressed the great geological potential of the deposits amounting to 26 million tons of zinc and copper, respectively, and that they are key minerals for the transformation of energy sources in the world. It also expected demand for copper to reach 3.5 million tons per year by 2030, while demand for zinc from the solar power alone will double to 160,000 tons by the same year.

It is expected that the SAR two billion ($533 million) Khnaiguiyah project will provide between 2,000-3,000 direct and indirect job opportunities and will contribute to the development of the zinc and copper industries in the Kingdom.

“This is another important strategic step that Saudi Arabia is taking to ensure a robust mining sector and leverage its rich mineral resources to benefit its economy and contribute to a sustainable future for the Kingdom and the world,” said renowned geologist Douglas Kirwin, who attended the Forum in Riyadh.

“With commitments to transparency and best practice data validation, the Saudi Geological Survey is playing a key role for the future development of natural resources throughout the Kingdom.”

“We are watching this tender closely. It opens the door for major international players to get involved, and shows concrete action around the new Mining Law in concert with Vision 2030. There’s a high level of interest from global and domestic investors to support the growth of the mining industry in Saudi Arabia. I expect this strategic initiative to lead to many more exciting opportunities,” said Matthew Fifield, Managing Partner at Pacific Road Capital.



Bahrain's Economy Expands 3.4% in Q4 Driven by Non-oil Growth

General view of capital Manama, Bahrain, October 30, 2022. (Reuters)
General view of capital Manama, Bahrain, October 30, 2022. (Reuters)
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Bahrain's Economy Expands 3.4% in Q4 Driven by Non-oil Growth

General view of capital Manama, Bahrain, October 30, 2022. (Reuters)
General view of capital Manama, Bahrain, October 30, 2022. (Reuters)

Bahrain's economy expanded by 3.4% in the fourth quarter compared to a year earlier, the finance ministry said on Tuesday, citing preliminary data.

Growth was driven primarily by a 4.6% increase in non-oil activities, while oil activities declined by 3.5% over the same period, data from the Gulf nation's Information and eGovernment Authority showed.

For 2024, Bahrain's real total gross domestic product grew by 2.6%, according to the statement.

According to projections from the ministry, Bahrain's real GDP is expected to grow by 2.7% in 2025, due to a 3.4% expansion in non-oil activities, coinciding with the operation of the Bapco Modernization Program.

The Bapco Modernization Program, one of Bahrain's largest energy investments, is expected to significantly raise refinery output, bolstering fiscal revenues amid efforts to diversify the economy.

Growth is forecast to reach 3.3% in 2026, supported by a 3.9% increase in non-oil activities.

"However, the forecasts will be closely monitored and updated to account for the ongoing global uncertainty and escalating turmoil that may affect the economic projections," the ministry said.

Last month, global ratings agency S&P Global downgraded Bahrain's outlook to "negative" from "stable", citing ongoing market volatility and weaker financing conditions that could increase the government's interest burden.

Escalating trade tensions have added to global economic uncertainty, clouding macroeconomic forecasts and weighing on investor and policymaker confidence around the world.