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.



IMF's Georgieva Says US Tariffs Represent Significant Risk to Global Outlook

International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, US September 4, 2018. REUTERS/Yuri Gripas/File Photo 
International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, US September 4, 2018. REUTERS/Yuri Gripas/File Photo 
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IMF's Georgieva Says US Tariffs Represent Significant Risk to Global Outlook

International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, US September 4, 2018. REUTERS/Yuri Gripas/File Photo 
International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, US September 4, 2018. REUTERS/Yuri Gripas/File Photo 

Sweeping tariffs announced on Wednesday by US President Donald Trump pose a significant risk to the global economy at a time when growth has been sluggish, the head of the International Monetary Fund said in a statement on Thursday.

IMF Managing Director Kristalina Georgieva said it was important to avoid steps that could further harm the global economy and appealed to the United States and its trading partners to work constructively to reduce tensions, according to Reuters.

“We are still assessing the macroeconomic implications of the announced tariff measures, but they clearly represent a significant risk to the global outlook at a time of sluggish growth,” Georgieva said in her strongest comments to date on the risks posed by the US trade actions.

“It is important to avoid steps that could further harm the world economy. We appeal to the United States and its trading partners to work constructively to resolve trade tensions and reduce uncertainty.”

Georgieva said the IMF would provide its assessment of the announced tariffs when it releases an update to its World Economic Outlook during the April 21-26 meetings in Washington, DC, that bring together members and shareholders of the IMF and the World Bank.

The head of the global lender on Monday told Reuters that Trump's push for wide-ranging tariffs was creating great uncertainty and denting confidence, but it was not likely to trigger a near-term recession.

At the time, Georgieva said the IMF would likely lower the economic outlook slightly, adding “we don't see recession on the horizon.”

The US tariffs announced on Wednesday went far beyond the levels that had been predicted or expected by trade experts.