Saudi mining law to attract ‘incredible’ private investment in $ 1.3 billion sector – CEO of Golden Compass

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In January, the Kingdom decided to capitalize on the vast riches hidden underground in Saudi Arabia with the creation of a mining fund and support for geological studies and exploration program activities.

The Saudi Industrial Development Fund is also offering 60% loans to investors with the aim of attracting global players to the Kingdom, while the Ministry of Industry and Mineral Resources invests $ 3.7 billion in the sector. .

Deputy Minister of Industry and Mineral Resources Khaled Al-Mudaifer spoke of the potential riches beneath the Kingdom’s soil last month, telling CNBC that studies have estimated phosphate reserves at $ 1.3 trillion, gold, copper, zinc, nickel, rare earth metals and other minerals.

Speaking to Arab News, Al-Ali was confident that the Kingdom’s enthusiasm for the sector would attract worldwide attention.

“It is a very flexible and very transparent system, and it is one of the most powerful in the mining sector in the world,” Al-Ali said. “The system is new and it can entice investors to come to Saudi Arabia. “

Under Vision 2030, mining is the third pillar of Saudi Arabia’s economic development, after energy and petrochemicals, as it aims to diversify the country’s economy by avoiding dependence on oil.

The Saudi Geological Survey has announced 54 locations for exploration, with more to be revealed in the coming months and auctioned off to investors.

The national geological database is being created to enable investors to find the location of mineral deposits with the aim of increasing transparency and competitiveness of the sector in Saudi Arabia.

The Kingdom has already attracted large international investors, including the American company Alcoa Corp., which has a 25.1% stake in Ma’aden Bauxite and Alumina Co., and Ma’aden Aluminum Co., as part of a $ 10.8 billion joint venture with the Saudi miner. Ma’aden, located in the industrial town of Ras Al-Khair in the Eastern Province.

Fertilizer producer The Mosaic Co., another US company, has a 25% stake in the $ 8 billion Ma’aden Wa’ad Al-Shamal fertilizer production complex located at Wa’ad Al-Shamal Minerals Industrial City, in the northern province of Saudi Arabia. .

Canadian company Barrick Gold Corp. holds a 50 percent stake with Ma’aden in the Jabal Sayid underground copper mine and plant.

“The contribution of the private sector will be incredible over the next two years,” Al-Ali said.

The mining sector is expected to create thousands of jobs in the Kingdom in the coming years with the goal of 256,000 geologists, engineers and others by 2030, he said.

“The ambitions will result in a doubling of the sector’s contribution to GDP,” Al-Ali said.

“Mining sector revenues were over SR 96 billion ($ 26 billion) in 2020 and we are targeting SR 176 billion by 2030.”


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