Saudi Arabia awards 11 mining exploration permits under accelerated program

The recent competition concluded with one national company and five alliances consisting of 10 local and international firms being awarded the exploration rights. File
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Updated 05 November 2024
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Saudi Arabia awards 11 mining exploration permits under accelerated program

JEDDAH: Saudi Arabia has granted 11 mining exploration permits to local and international companies for six sites under its Accelerated Exploration Program, which aims to unlock the Kingdom’s underutilized mineral resources.

On Nov. 5, the Ministry of Industry and Mineral Resources announced that the permits, covering a total area of 850 sq. kim across Riyadh, Makkah, and Asir, were awarded as part of a competitive licensing round designed to boost the country’s mineral sector. This initiative is aligned with Saudi Arabia’s Vision 2030 and the National Industry Development and Logistics Program.

The recent competition concluded with one national company and five alliances consisting of 10 local and international firms being awarded the exploration rights. The competition was designed to maximize the value of the country’s mineral resources and expand the mining industry as a key pillar of the economy.

Transforming the mining sector

Saudi Arabia is aiming to transform mining into the third pillar of its industrial base, alongside oil and petrochemicals. The Kingdom is home to more than 5,300 mineral sites, estimated to be worth around SR5 trillion ($1.33 trillion), and the ministry is actively seeking to harness these resources to fuel economic growth.

Among the winners, the alliance of ANS Exploration and Odyssey Metal Ltd. was granted an exploration license for the Umm Qasr site in Riyadh, known for its deposits of gold, silver, lead, and zinc. Gold and Minerals Co. secured a license for the Wadi Doush site in Asir, an area rich in gold, silver, and copper ore deposits, covering 157 square kilometers.

The alliance of AuKing Mining Ltd. and Barg Al-Saman Mining Co. received a license for the Shuaib Marqan site in Riyadh, spanning 92 square kilometers and noted for its copper, silver, and gold resources. Meanwhile, Metal Bank Ltd. and the Mining Holding Co. were awarded the Wadi Al-Jouna site in Asir, which covers 425 square kilometers and contains copper, zinc, silver, and gold.

Other awarded licenses include the Hazm Shubat site in Asir, granted to the Rawkad and Masharef alliance, which is known for its gold deposits. The Midad Al-Muna for Mining and Tinka Resources alliance was given the license for the Huwaimdhan exploration site in Makkah, which also holds significant gold resources.

Commitment to local development

A total of 44 bids were received from 22 companies — many of them new to the Saudi market—during the competition. Bids were evaluated based on technical expertise, proposed work programs, and social and environmental considerations. As part of their commitment, the winning companies have pledged to invest SR75 million ($20 million) in exploration activities and SR5 million toward community development, aiming to create jobs and opportunities for citizens in underserved areas.

This licensing round marks a significant milestone for Saudi Arabia’s mining sector, with four companies receiving exploration licenses for the first time, further cementing the Kingdom’s appeal as a leading investment destination for mining.

Aligning with Vision 2030

The ministry highlighted that this initiative reflects investors' confidence in Saudi Arabia’s mining investment framework, which adheres to the highest standards of transparency and environmental responsibility. It also underscores the country’s commitment to diversifying its economy in line with Vision 2030, which aims to develop the mining sector as a key economic driver.

In a related development, the ministry recently announced another competition for seven mining exploration licenses, covering regions in Makkah and Riyadh and targeting a range of precious and base metals, including gold, copper, zinc, lead, and silver. The deadline for submitting technical proposals for this new licensing round is at the end of November.

MoU signed

The ministry and Sukuk Capital have signed a memorandum of understanding aimed at enhancing industrial financing. The agreement, reported by the Saudi Press Agency, is designed to provide tailored financial solutions for industrial enterprises.

The MoU was signed by Al-Badr Fouda, the Ministry’s Deputy Minister for Industrial Development, and Abdulaziz Al-Sayyari, CEO of Sukuk Capital, with the ceremony attended by Deputy Minister for Industrial Affairs, Khalil bin Ibrahim bin Salamah.

The partnership aims to develop innovative financial products that support the growth and sustainability of local factories, in line with the goals of the National Industrial Strategy. The agreement also focuses on customizing Sukuk Capital’s financial offerings to meet the unique requirements of industrial businesses.

The financial solutions covered by this MoU include working capital financing, asset financing, and acquisition financing — designed to address the funding needs of factories and help drive their expansion.


Aramco, TotalEnergies and Saudi Investment Recycling Company to explore sustainable aviation fuel plant

Updated 9 sec ago
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Aramco, TotalEnergies and Saudi Investment Recycling Company to explore sustainable aviation fuel plant

  • The firms have entered into a Joint Development and Cost Sharing Agreement

DHAHRAN: Saudi Aramco and the Saudi Investment Recycling Company, or SIRC, have partnered with French firm TotalEnergies to assess developing a sustainable aviation fuel plant in Saudi Arabia’s Eastern Province, it was announced on Tuesday.

The firms have entered into a Joint Development and Cost Sharing Agreement.

“With demand for air travel forecast to grow, it’s becoming imperative to address aviation emissions through lower-carbon alternatives. This is where major global energy companies like Aramco and TotalEnergies can play a part, by collaborating to help meet this need,” said Amin Nasser, Aramco president and CEO.

“Addressing transport emissions requires a wide range of approaches and Aramco is pursuing a number of potential innovative solutions, as we seek opportunities to contribute to global emissions reduction efforts.

“We already have a well-established partnership with TotalEnergies and this new collaboration demonstrates our intent to explore ways to leverage our combined strengths, in this case with a view to establishing a SAF plant in the Kingdom with SIRC. As Saudi Arabia’s tourism and aviation sectors expand, this could potentially benefit both domestic and international airlines,” he added.

The project would aim to recycle local waste, such as used cooking oils and animal fats, to produce SAF, advancing Saudi Arabia’s Vision 2030 sustainability goals.

Announced during French President Emmanuel Macron’s state visit to the Kingdom, the initiative is the latest in increasing Saudi-French collaboration on clean energy.

Patrick Pouyanne, chairman and chief executive officer at TotalEnergies, said: “We are delighted to partner with Aramco and SIRC to study the production of SAF in the Kingdom. By leveraging our expertise, we can take a further step toward the decarbonization of air transport together. SAF is at the heart of our company’s transition strategy, as we strive to meet the aviation industry’s demand to reduce its carbon footprint.”

Further details will follow pending feasibility studies.

SIRC chief, Ziad Al-Sheha, added: “In keeping with our commitment to supporting the ambitious sustainability objectives of Vision 2030 and the Saudi Green Initiative, we have a keen focus on increasing waste conversion rates into renewable resources.”

“The new partnership to assess the feasibility of a renewable aviation fuels plant signifies a major leap forward in our mission; we also believe it will enrich and energize our efforts to lead the development of the Kingdom’s circular economy,” he said.


Saudi Green Initiative unveils $60m in new environmental projects at COP16

Updated 03 December 2024
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Saudi Green Initiative unveils $60m in new environmental projects at COP16

RIYADH: The fourth Saudi Green Initiative Forum began on Tuesday with the launch of five new groundbreaking environmental projects, valued at SR225 million ($60 million).

This announcement marks a significant step forward in Saudi Arabia’s ambitious environmental strategy, bringing the total investment in SGI initiatives to over $188 billion.

The new initiatives align with Saudi Arabia’s commitment to tackling climate challenges, focusing on reducing emissions, combating desertification, and preserving the Kingdom’s natural ecosystems. The announcement coincides with the 16th Conference of the Parties to the UN Convention to Combat Desertification, being held in Riyadh, and underscores Saudi Arabia’s growing leadership in global environmental efforts.

With 86 ongoing initiatives, the SGI is central to the Kingdom’s long-term vision of creating a more sustainable future. The program is focused on reducing emissions by 278 million tonnes annually and achieving net-zero emissions by 2060.

Saudi Arabia is also making significant strides toward its renewable energy targets, including plans to generate 50 percent of its electricity from renewable sources by 2030.

Since 2021, the Kingdom has planted over 100 million trees and rehabilitated 118,000 hectares of degraded land. By 2030, Saudi Arabia aims to restore 8 million hectares of land as part of its commitment to environmental regeneration.

The five new initiatives, led by Ma’aden, the Morooj Foundation in partnership with the private sector, and Tanmiah Food Co., will bolster efforts in afforestation, biodiversity conservation, and land rehabilitation. These projects are expected to plant millions of trees and mangroves, scatter 300 million seeds, and help reduce air pollution across the country.

According to a press release, these initiatives align with the broader Saudi Green Initiative goals, including the protection of 30 percent of the Kingdom’s land and marine areas by 2030.

Other notable conservation achievements include the successful rewilding of endangered species, such as the recent birth of four cheetah cubs — the first in Saudi Arabia in over 40 years — under the National Cheetah Conservation Strategy, it added

The continued focus on environmental restoration is integral to Saudi Arabia’s broader vision of safeguarding its natural resources and biodiversity for future generations.


Airbus opens regional headquarters in Riyadh

Updated 03 December 2024
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Airbus opens regional headquarters in Riyadh

RIYADH: Airbus has officially opened its new Regional Headquarters in Riyadh, reinforcing its long-term commitment to Saudi Arabia and the broader Middle East.

This expansion marks a key milestone in Airbus’ efforts to enhance its commercial, defense, space, and helicopter operations in the Kingdom and the region.

The new HQ highlights Airbus’ growing involvement in Saudi Arabia’s aviation and aerospace sectors, where the company has been active since the 1970s. Airbus currently employs over 350 people in Saudi Arabia, with 30 percent of its workforce being Saudi nationals. The company aims to further boost local talent development and technological expertise.

This move aligns with Saudi Arabia’s regional headquarters program, which offers incentives such as a 30-year corporate income tax exemption, withholding tax immunity, and various support services for businesses.

Eid Al-Qahtani has been appointed as the president of Airbus’ Riyadh-based regional headquarters. With more than 20 years of leadership experience — including his previous role as head of operations for Airbus Helicopters in Riyadh — Al-Qahtani will focus on strengthening partnerships with governments and stakeholders, as well as driving new business in the region.

Wouter Van Wersch, president of Airbus International, praised the appointment: “We are privileged to have Eid Al-Qahtani leading our operations in Saudi Arabia. His deep understanding of the country's goals and his proven leadership in the region make him the ideal person for this role.”

Earlier this year, Airbus signed an Industrial Participation agreement with Saudi Arabia’s General Authority for Military Industries, supporting the Kingdom’s Vision 2030 objectives.

This collaboration includes technology transfers and initiatives for industrial localization, such as SAMI Airbus Aircraft Maintenance Services — a joint venture between Saudi Arabian Military Industries and Airbus.

Al-Qahtani expressed his enthusiasm: “I am honored to lead Airbus from our new headquarters in Riyadh. Saudi Arabia is a strategically important market for us, and we are committed to supporting the Kingdom’s long-term goals while nurturing the next generation of aerospace leaders.”

Saudi Arabia’s efforts to attract international businesses are paying off. The Kingdom has already surpassed its 2030 target of 500 regional headquarters, with 540 international companies now established in Riyadh, according to Minister of Investment Khalid Al-Falih.

“Investors are coming not only for our vibrant market but also to explore the broader region,” he said.


Saudi Arabia a key player in global energy transition, says IRENA chief

Updated 03 December 2024
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Saudi Arabia a key player in global energy transition, says IRENA chief

RIYADH: Saudi Arabia is set to deepen its collaboration with the International Renewable Energy Agency to advance sustainability initiatives, according to a senior official. 

Speaking to Arab News on the sidelines of the UN Convention to Combat Desertification COP16, Francesco La Camera, director-general of IRENA, stated that Saudi Arabia is a key leader in transitioning away from fossil fuels, thanks to the Kingdom’s Green Initiative. 

He also highlighted global progress in renewable energy, noting that last year saw a record increase in capacity, driven by advancements in green hydrogen and sustainable biomass.

“We are working on signing an agreement with the GCC countries, so we will see when we will be ready. We will announce that we are working more closely with Saudi Arabia on our topics and our area of interest,” La Camera said. 

He added: “Just to give you an example now, ACWA Power is a Saudi company, but it is the elite company for decentralization. They invest in 12 different countries, and this is something amazing, and this is an effort also outside the country to work for the energy transition, providing water in a country that stresses all this.” 

The IRENA director-general stressed the importance of all nations, including Saudi Arabia, to increase efforts, with the expectation that updated national climate contributions will be submitted before February 2025. 

“Everyone has to do more, so we expect to see also the national climate contribution to be presented before February 2025. We also hope that our presence at COP will allow us to have more discussion and to increase the level of engagement of Saudi in the work of IRENA,” La Camera said. 

He added: “We think that, inevitably, Saudi is a leading country on all of this. It has the potential. It has the resources. It has the leadership to go faster and scale in the energy transition.” 

La Camera also outlined a strategy to address the structural challenges hindering the deployment of renewable energy at the speed and scale required to meet global energy and climate goals. 

The focus is on overcoming infrastructure barriers by creating interconnected, flexible, and balanced grids that can support a higher integration of renewable energy. 

This is where regional collaboration comes in, which is essential to achieving this objective. 

“I emphasize the role of the infrastructure. We need groups that are interconnected, flexible, and balanced to allow more renewables. Regional collaboration is crucial,” La Camera said. 

During his keynote speech at the Saudi Green Initiative, La Camera spoke about the need to design the market in a way that is more favorable for renewables. 

“We need to strengthen the capacity of the distribution to deal with this through a system that is more distributed instead of centralized, and also the need to reskill the personnel that is moving from the fossil fuel to the renewable area,” he said. 

La Camera concluded the interview by highlighting IRENA’s long-term planning efforts, which are essential for aligning financial investments with the needs of the renewable energy sector. 


Land degradation driving global instability and forced migration, warns Saudi envoy at COP16

Updated 03 December 2024
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Land degradation driving global instability and forced migration, warns Saudi envoy at COP16

RIYADH: Forced migration due to land degradation is a global challenge that needs to be tackled, according to Saudi Arabia’s climate envoy. 

Taking center stage at COP16 in Riyadh, Adel Al-Jubeir described the phenomenon as a driving force behind security crises, highlighting food, air quality, and biodiversity as areas of concern. 

Addressing delegates, Al-Jubeir painted a stark picture of the cascading impacts of degraded land, calling for unified global action to halt the alarming trend.

“Land degradation impacts every single human being,” he said, linking the loss of productive land to the displacement of millions and the destabilization of entire regions. “When people cannot grow food, they migrate. This migration often leads to tension and conflict in the receiving areas, creating a cycle of dislocation and violence.” 

The figures are sobering, with 100 million hectares of land lost annually — an area the size of Egypt — while the global population continues to rise, intensifying pressure on diminishing resources.

Al-Jubeir emphasized that addressing land degradation is a matter of environmental urgency and a cornerstone of global security. “This is an issue that touches every aspect of our lives — food security, national security, migration, air quality, and biodiversity,” he said, urging nations to collaborate on solutions to reverse degradation and restore the Earth’s ability to absorb carbon.

The discussion was further elevated by Ibrahim Thiaw, executive secretary of the UN Convention to Combat Desertification, whose address highlighted the profound human toll of land degradation.

“People do not migrate because they want to; they do so because they have no choice,” he said, he described how the loss of fertile land compels millions to flee their homes. 

Thiaw drew a direct line between environmental degradation and global displacement trends, citing data showing that up to 7 billion people could be affected by droughts by 2050. He linked 40 percent of interstate conflicts to disputes over natural resources, underscoring the link between environmental collapse and geopolitical instability.

His solution was clear and direct: land restoration. “Investing in land restoration is investing in keeping people safe at home,” Thiaw said, adding: “It is about giving them the dignity to produce food, educate their children, and live securely without being forced to migrate.” 

He called on global leaders to prioritize sustainable agricultural practices and ecological restoration, noting that these investments could break the cycles of forced migration and conflict.

The intersection of environmental sustainability, migration, and security presented at COP16 has underscored the need for urgent, united action. 

With Saudi Arabia championing this agenda on the global stage, and as negotiations proceed over the course of the next two weeks, the focus now shifts to translating bold commitments into tangible outcomes that safeguard communities and ecosystems worldwide.