Arab News, Wed, Mar 20, 2024 | Ramadan 10, 1445
Saudi Arabia offers $182m incentive package for mining investors
Saudi Arabia:
Investors eyeing opportunities in Saudi Arabia’s mining sector stand to gain
from a new incentive package totaling nearly SR685 million ($182 million) in
financial facilitation.
The Ministry of Industry and Mineral Resources has
launched the scheme aimed at supporting mining exploration in the Kingdom.
These initiatives, developed in collaboration with
the Ministry of Investment, intend to reduce risks for exploration companies
during their initial stages and foster funding in this crucial sector, aligning
with the goals of Vision 2030, as reported by the Saudi Press Agency.
Elaborating on the latest measures, the ministry
highlighted that the comprehensive financial support package is intended to
assist companies and investors interested in venturing into mineral resource
exploration within the Kingdom. These initiatives represent a significant
opportunity for growth in the sector.
Furthermore, the government stressed its
dedication to prioritizing investors who show a commitment to nurturing local
talent and expertise, thus playing a pivotal role in fostering sustainable
development within the mining industry.
It also confirmed that the new measures encompass
assistance for companies holding exploration licenses valid for less than five
years. Under this provision, each license is eligible for support of up to SR7.5
million maximum.
Furthermore, the ministry added that each company
can qualify for support for up to 15 licenses, subject to the terms and
conditions of the program, and all interested parties can take advantage of this
opportunity by accessing the mining platform, taadeen.sa.
The launch of the program, in collaboration with
the Ministry of Investment, is expected to accelerate greenfield exploration and
attract funding in the Kingdom’s mineral sector.
As per the Industry Ministry’s website,
exploration efforts should prioritize critical minerals such as copper, lithium,
and rare earth elements or REE, a collective term encompassing 17 chemically
similar metallic components, including scandium, yttrium, and the 15
lanthanides.
The body emphasized that activities should target
underexplored areas or underrepresented critical minerals. It added that
applying investors should also have relevant expertise and a track record in
greenfield exploration. Moreover, participants should commit to using local
providers for services and contracts.
Saudi Arabia’s mining sector is anticipated to
become a pillar of the Kingdom’s industrial sector alongside oil, gas, and
petrochemicals.