RIYADH: 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.