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
TT
20

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.



Oil Climbs $1 as Price Drop Triggers Buying; Oversupply Worries Weigh

FILE PHOTO: An oil pumpjack operates near Williston, North Dakota January 23, 2015. REUTERS/Andrew Cullen/File Photo
FILE PHOTO: An oil pumpjack operates near Williston, North Dakota January 23, 2015. REUTERS/Andrew Cullen/File Photo
TT
20

Oil Climbs $1 as Price Drop Triggers Buying; Oversupply Worries Weigh

FILE PHOTO: An oil pumpjack operates near Williston, North Dakota January 23, 2015. REUTERS/Andrew Cullen/File Photo
FILE PHOTO: An oil pumpjack operates near Williston, North Dakota January 23, 2015. REUTERS/Andrew Cullen/File Photo

Oil gained more than $1 per barrel on Tuesday, rebounding on technical factors and bargain hunting after a decision by OPEC+ to boost output sent prices down the previous session, although concerns about the market surplus outlook persisted.

Brent crude futures rose $1.15 to $61.38 a barrel by 0623 GMT, the first time gain after six consecutive declines, while US West Texas Intermediate crude added $1.11 to $58.24 a barrel.

Both benchmarks had settled at their lowest since February 2021 on Monday, driven by an OPEC+ decision over the weekend to further speed up oil production hikes for a second consecutive month.

"Today’s slight rebound in oil prices appears more technical than fundamental," said Yeap Jun Rong, a market strategist at IG. "Persistent headwinds including a pivotal shift in OPEC+ production strategy, uncertain demand amid US tariff risks, and price forecast downgrades are continuing to weigh on the broader price movement."

Driven by expectations that production will exceed consumption, oil has lost over 10% in six straight sessions and dipped over 20% since April when US President Donald Trump's tariff shocks prompted increased bets on a slowdown in the global economy.

The return of Chinese market participants after a five-day public holiday since May 1 was seen supporting prices on Tuesday.

"China also reopened today, and being the largest importer, buyers would have likely jumped to secure oil at current low levels," said Priyanka Sachdeva, senior market analyst at Phillip Nova.

Also lending some support was data showing a pick-up in services sector's growth in the US, the world's major oil consumer, as orders increased.

The Institute for Supply Management (ISM) said on Monday its nonmanufacturing purchasing managers index (PMI) increased to 51.6 last month from 50.8 in March. Economists polled by Reuters had forecast the services PMI dipping to 50.2.

The US Federal Reserve will likely leave interest rates unchanged on Wednesday as tariffs roil the economic outlook.

Barclays lowered its Brent crude forecast on Monday by $4 to $70 a barrel for 2025 and set its 2026 estimate at $62 a barrel, citing "a rocky road ahead for fundamentals" amid escalating trade tensions and OPEC+'s pivot in its production strategy.

Goldman Sachs also lowered its oil price forecast on Monday by $2-3 per barrel, as they now expect another 400,000 barrels per day production increase by OPEC+ in July.