The value of the Saudi mineral wealth, estimated several years ago at about SR5 trillion, has doubled with the increase in the price of minerals, especially gold, copper, and zinc, CEO of Saudi Geological Survey (SGS) Ahmed al-Shamrani has announced.
The numbers boost the value of the Saudi economy, especially in the mining sector, which is currently witnessing the competition of 13 local and foreign companies to win a license for the Umm al-Damar mining site in Medina.
The production of copper and zinc concentrates reached 68,000 tons annually, and about 24.6 million tons of phosphate ore is processed to produce about 5.26 million tons of phosphate fertilizers.
Saudi Arabia is among the top five producers of phosphate fertilizers.
Shamrani explained to Asharq Al-Awsat that previous estimates and expectations indicated that the amount of minerals is equal to SR5 trillion, but these estimates will double the current prices.
The value of zinc rose from SR1,000 during the last period to SR3,000. Similarly, the price of a ton of copper exceeded from SR2500 to SR10,000.
He indicated that the rise in prices would continue with the need for clean energy.
Shamrani added that the geological survey of the Arab Shield seeks to determine the quantities of minerals in Saudi Arabia, which will increase the value.
He pointed out that six aircraft are carrying out the reconnaissance operation at the level of the Arab Shield.
In addition, several companies are monitoring information by taking samples from all Saudi cities, said Shamrani, adding that the authority plans to collect 110,000 samples.
About 35,000 samples were collected recently, which cover approximately nine percent of the total area of the Shield.
Meanwhile, the SGS completed the pre-qualification phase to award the exploration license for the Umm Ad Damar mining project, and the winning bidder will be notified by the end of November.
Shamrani said that 13 local and international companies have pre-qualified for bidding to get exploration licenses.
Umm Ad Damar covers an area of 40 square kilometers and is located 300 km northeast of Jeddah and 25 km northwest of Mahd al-Dhahab Governorate. The site includes several mineral deposits, including copper, zinc, gold, and silver.
Initial indicators during the core excavation had suggested that copper values reached 3.7 percent, while zinc percentage touched 3.6 percent. The results of the samples also showed encouraging amounts of gold.
Shamrani explains that the site is more than 1,000 years old and was used during the Abbasid era to extract zinc and copper to make coins. It was rediscovered in the 1930s and rehabilitated.
Qualified companies will be committed to following environmental and social practices and submitting a social impact plan that includes employment rates and local purchases from the neighboring areas of the site.
This will contribute to the growth of the area in several aspects and the sustainability of the impact of natural resources, which will reflect on the value of the investment and its revenues for the region.
