meed-logo

line1 line2 line3
SIGN IN / REGISTER

Saudi Arabia transforms mining sector

23 February 2024

 

This month's Agenda also includes: Mergers soar in global mining sector

Saudi Arabia’s metals and mining industry is playing a pivotal role in the country’s non-oil growth trajectory. 

Commercial exploitation of the kingdom’s massive mineral resource base, most of which lies untapped, is a key component of Riyadh’s Vision 2030 socioeconomic transformation strategy.

The kingdom took the first step towards realising the commercial potential of its mineral resources when it enacted a new mining investment law in 2021. Since the law came into effect, the Ministry of Industry & Mineral Resources (MIMR) has awarded more than 2,000 mining permits to local and foreign firms under its accelerated exploration initiative.

Addressing the Future Minerals Forum (FMF) in Riyadh in early January, Bandar Alkhorayef, the kingdom’s industry and mineral resources minister, said Saudi Arabia’s natural resources are worth $2.5tn – an increase of more than 90% compared with the 2016 estimated level of mineral reserves.

This near-doubling of its deposits of natural resources – which excludes fossil fuels and includes phosphate, gold and rare earths – is set to act as a stimulus to the kingdom’s nascent mining industry.

Mineral exploration drive

The MIMR is leading efforts to boost investments in the Saudi metals and mining sector, and Riyadh is providing impetus to the mineral exploration incentive programme with a cash injection of $182m.

“This programme will de-risk investments in our exploration, to enable new commodities, greenfield projects and junior miners,” Alkhorayef told the FMF.

To tap into overseas mining experience, the ministry signed four memorandums of understanding at the FMF.

Deals involving cooperation in the field of mineral wealth were signed with Egypt’s Petroleum & Mineral Resources Ministry, Morocco’s Energy Transition & Sustainable Development Ministry and Congo’s Mines of the Democratic Republic Ministry. A separate agreement inked with Russia involves geology. 

Alkhorayef also announced the MIMR’s fifth and sixth mining concession licensing rounds at the conference in Riyadh. The rounds will offer local and international miners access to 33 exploration sites this year.

The ministry launched its last concession licensing round in August 2023, offering eight mining sites in the kingdom. Six of the sites are located in the Eastern Province – in Ghounan, Al Misnah, Al Samman, Ras Al Qaryah and the eastern and western zones of Salwa – and are understood to contain limestone ore, sand and other minerals.

The other two sites are in Riyadh Province, in Al Armah and Hofayrat Nesaah. These sites are estimated to hold gravel and sand deposits, among other minerals.

Prior to the August licensing round, the ministry announced in April that it had shortlisted 13 local and international companies for the exploration phase at the Muhaddad and Al Ridaniyah mining sites.

The Muhaddad exploration site, located in Bisha within the Asir geological terrane, covers 139 square kilometres and includes copper, zinc and lead ore deposits. The Al Ridaniyah exploration site is in the Riyadh region within the Al Dawadmi geological terrane. It covers more than 75 sq km and includes deposits of zinc and silver ore.

In January, the MIMR announced preferred bidders for another licensing round that it launched last April.

A consortium of local firm Ajlan & Bros Mining Company and Hong Kong-based Norin Mining Company is the preferred bidder for the Bir Umq exploration site. The site is located in the city of Mahd Ad Dhahab, in western Saudi Arabia. Covering about 187 sq km, the site contains deposits of copper and zinc.

As part of the licence awarded for this site, the winning consortium will invest over $29m in exploration activities. The consortium has also committed $4m for local community initiatives, including training and development programmes.

A consortium of UK-headquartered Royal Road and local entity MSB Holding Company has been picked as the preferred bidder for the Jabal Sahabiyah exploration site. 

The site is located in the Tathleeth region, in the south of the kingdom, and covers an area of 283 sq km. Jabal Sahabiyah holds mineral deposits of zinc, lead and copper. The selected consortium will invest more than $5m in exploration work and another $120,000 in community development.

A consortium of Saudi Arabia-based Sumou Holding and Canada’s Kuya Silver has been selected for the Umm Hadid site and will invest more than $22m in exploration activities and about $800,000 in community development. Umm Hadid is located in the Afif region in central Saudi Arabia. Covering an area of 246 sq km, the site contains mineral deposits of silver, lead, copper and zinc.

The near-doubling of its deposits of natural resources is set to act as a stimulus to the nascent mining industry

Maaden steps up

Saudi Arabian Mining Company (Maaden) is at the forefront of Riyadh’s campaign to develop and expand the kingdom’s metals and mining sector. By 2040, the company, which is majority owned by the Public Investment Fund (PIF), aims to build its upstream mining capabilities, gain exposure to future minerals and form partnerships with global mining companies.

Last January, Maaden signed a joint-venture agreement with the PIF to establish a new company to invest in mining assets globally. Maaden owns a 51% stake and the PIF holds the other 49% in the company, known as Manara Minerals, which will have a capital allocation of $50m.

Manara Minerals aims to invest in iron ore, copper, nickel and lithium projects as a non-operating partner, taking minority equity positions. The firm’s first overseas investment was a deal in July to become a 10% shareholder in Brazilian mining major Vale’s $26bn subsidiary, Vale Base Metals.

In terms of metals production, Maaden announced in mid-January that its subsidiary Maaden Gold & Base Metals Company (MGBM) had started commercial production of gold from the first phase of the Mansourah-Massarah gold project.

MGBM operates six gold mines, with the Mansourah-Massarah mine being one of its concession areas. In June 2021, the Maaden subsidiary awarded an estimated $880m contract for the first phase of the Mansourah-Massarah gold mine to a consortium of India’s Larsen & Toubro and Finland-based Metso Outotec. The award of that engineering, procurement and construction (EPC) contract represents the biggest investment in gold mining in Saudi Arabia to date.

In August last year, MGBM also awarded an EPC contract for the second phase of the Mansourah-Massarah gold mine project, worth $28m, to a consortium of Riyadh-based Darkstone and Australia-headquartered ATC Williams. The contract involves installing tailings storage facilities and wastewater management systems.

Maaden exploration push

On the mineral exploration front, Maaden signed an agreement with US-based Ivanhoe Electric in July 2023 to undertake exploration for high-demand minerals in the Arabian Shield zone in Saudi Arabia. As part of the $130m deal, the partners are to survey an area of 48,500 sq km in the Arabian Shield, starting in September.

About the size of Switzerland, the Arabian Shield region is understood to be rich in reserves of minerals such as copper, nickel, gold, silver and possibly lithium.

Maaden has had success in its exploration drive. In late December, it announced the discovery of significant gold resource potential extending along a 100km strike from its Mansourah-Massarah gold mine. This is the first find from the company’s exploration programme, which was launched in 2022 with the aim of building Maaden’s production pipeline.

Exploration around Mansourah-Massarah has focused on identifying potential deposits of a similar scale and with similar geology. Encouraging drill results from several sites on Uruq South, along a 100km stretch south of Mansourah-Massarah, uncovered similar geological characteristics and chemistry to the gold deposit. These results include high-grade drill intercepts found 400 metres away from and under Mansourah-Massarah, with several high-grade intercepts.

In addition, Maaden has continued the expansion of its exploration footprint at the Jabal Ghadarah and Bir Tawilah prospects located 25km north of Mansourah-Massarah, where the company is converting an inferred resource of 1.5 million ounces to indicated and measured status.

In combination, these positive drilling results have identified a 125km strike with significant potential to become a major gold belt in Saudi Arabia. The near-mine drilling results around Mansourah-Massarah indicate that the resource is open both at depth and along the strike, offering significant potential to expand resources at the mine and possibly to extend the mine life with underground development.

Mansourah-Massarah had stated gold resources of almost 7 million ounces as of the end of 2023, and a nameplate production capacity of 250,000 ounces a year.

Positive drilling results have identified a 125km strike with the potential to become a major gold belt in Saudi Arabia  

Maaden technology investments

To extend the role of technology in Saudi Arabia’s mining sector, Maaden signed a master agreement with Germany’s Thyssenkrupp Uhde at the FMF. The deal covers the development of engineering and licensing of a calcination plant for phosphogypsum processing.

The purpose of the proposed plant, which is to be located at Maaden’s Ras Al Khair site, is to recycle phosphogypsum and enable the capture of carbon dioxide (CO2) emissions. The joint research and development will be carried out together with Thyssenkrupp Polysius and Metso Outotec.

Also at the FMF, Maaden and US firm GlassPoint announced plans to develop a solar steam technology. The first stage of project development will have the capacity to supply 9 tonnes of steam an hour to begin the decarbonisation of Maaden’s aluminium supply chain, in what is expected to be the world’s largest industrial solar thermal project.

The technology will combine the direct generation of heat and storage to provide a continuous base load of steam to Maaden’s alumina refinery at Ras Al Khair. The initial capacity will be about 1% of the larger project, which is slated to save more than 12 million British thermal units of energy annually and reduce CO2 emissions by 600,000 tonnes a year.

Maaden and digital reality firm Hexagon also partnered at the FMF to launch a "digital mine".

“Hexagon’s life-of-mine technology solutions are being successfully deployed at the Mansourah-Massarah mine, combining sensor, software and autonomous technologies to enhance efficiency, productivity, quality and safety across the mine’s operations,” the companies said.

Mergers soar in global mining sector

MEED's October 2023 special report on Saudi Arabia includes: 

> COMMENT: Riyadh reshapes its global role
> POLITICS: Saudi Arabia looks both east and west
> SPORT: Saudi Arabia’s football vision goes global
> ECONOMY: Riyadh prioritises stability over headline growth
> BANKS: Saudi banks track more modest growth path
> UPSTREAM: Aramco focuses on upstream capacity building
> DOWNSTREAM: Saudi chemical and downstream projects in motion
> POWER: Riyadh rides power projects surge
> WATER: Saudi water projects momentum holds steady
> GIGAPROJECTS: Gigaproject activity enters full swing
> TRANSPORT: Infrastructure projects support Riyadh’s logistics ambitions
> JEDDAH TOWER: Jeddah developer restarts world’s tallest tower

https://image.digitalinsightresearch.in/uploads/NewsArticle/11456699/main.jpg
Indrajit Sen

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Syria seeks interest for $1.16bn Euphrates dam

    7 October 2026

    Register for MEED’s 14-day trial access 

    Syria’s Ministry of Energy has invited expressions of interest (EoIs) for the development of the Halabiyeh-Zalabiyeh dam project on the Euphrates River.

    The project has an indicative total cost of $1.16bn, according to the ministry’s EoI document. This includes $433.7m for the dam and hydropower plant and $729.6m for the pumped-storage power plant (PSP). 

    The scheme includes an 81MW hydroelectric power plant and a pumped-storage facility with a capacity of up to 1,200MW. The project will also include the construction of the dam and associated water-storage infrastructure. 

    The ministry seeks interest from qualified local and international companies, investors and other entities. Interested parties can participate in studies, design, financing, construction, and operation and maintenance of the project. 

    The ministry is considering several potential development structures, including build-own-operate-transfer, build-operate-transfer and public-private partnership models, as well as an engineering, procurement and construction (EPC) structure. It has said it is also open to proposals covering consultancy and financing services.

    The EoI covers several stages, including pre-feasibility and feasibility studies, financing and bankability studies, detailed and executive design, EPC execution, and operation and maintenance.

    The technical specifications envisage a 23-metre-high dam with a reservoir storage capacity of about 219 million cubic metres.

    The hydropower plant will have three generating units, while the 1,200MW PSP will have 3.5 hours of storage capacity and four reversible units.

    The deadline for submitting EoIs is 10 November, with enquiries accepted until 26 October.

    READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDF

    Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

    Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20336025/main.jpg
    Mark Dowdall
  • Arada launches UAE construction arm with Roberts

    7 October 2026

    Register for MEED’s 14-day trial access 

    UAE developer Arada has integrated Australian contractor Roberts into the UAE market as part of its wider business strategy.

    Arada acquired Roberts in 2025 after entering the Australian market. The tier-one contractor delivers projects in the healthcare, education, commercial, residential, hospitality, industrial, life sciences and defence sectors.

    At the time of the acquisition, Arada said it planned to invest about $20m in Roberts. The investment is intended to give the developer greater control over the delivery of its Australian projects and support Roberts’ expansion into markets including the UAE.

    Arada has said it could invest up to $100m in Roberts’ expansion into new sectors and markets. The company is targeting $1bn in annual revenue from Roberts by 2028.

    Roberts has established a UAE office, with a head office team already in place. Arada said the contractor’s capabilities will support the delivery of its high-rise residential and social infrastructure projects.

    The contractor’s first UAE project will be phase two of Arada Central Business District, a commercial development within Aljada in Sharjah. Arada is developing the AED35bn ($9.5bn) mixed-use project.

    Roberts is also providing preconstruction services for several Arada projects in Dubai and Sharjah, ahead of starting site work.

    READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDF

    Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

    Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20334926/main.jpg
    Yasir Iqbal
  • Expo Riyadh sets October deadline for Saudi Arabia pavilion

    7 October 2026

     

    Expo 2030 Riyadh Company (ERC), tasked with delivering the Expo 2030 Riyadh venue, has set a deadline of 25 October for bids for a contract to build the Saudi Arabia pavilion.

    The tender was issued on 19 May, with an initial bid submission deadline of 26 August.

    The pavilion is a major asset located within the KSA District on the eastern side of the Expo 2030 Riyadh masterplan, in the Loop of Nations district.

    Construction activity at the Expo site is accelerating, with Riyadh moving to award its first major vertical contracts and advancing infrastructure works across the programme.

    Last month, MEED reported that ERC had received contractor interest on 14 September for a contract to design and build a convention centre in the site’s Collaboration District.

    ERC also tendered a contract to deliver the Souq areas within the Expo site, as MEED exclusively reported on 8 September.

    These areas are divided into five precincts, with a total development area of about 300,000 square metres.

    Also in September, Saudi Arabia’s Royal Commission for Riyadh City awarded a design-and-build contract to construct a new metro station serving the Expo 2030 site.

    In April, ERC awarded two contracts for the next phase of infrastructure works at the site to local firm Al-Yamama Company.

    The scope covered the construction of road networks and infrastructure for water, sewage, electricity, telecommunications and electric vehicle (EV) charging.

    These awards followed ERC’s January award of an estimated SR1bn ($267m) contract for initial infrastructure works at the site to local firm Nesma & Partners.

    That scope covered about 50 kilometres of integrated infrastructure networks, including internal roads and essential utilities such as water, sewage, electrical and communications systems, as well as EV charging stations.

    The masterplan covers 6 square kilometres, making it one of the largest sites ever designated for a World Expo event. Situated north of the Saudi capital, the site will be near the future King Salman International airport and will provide direct access to Riyadh landmarks.

    The Public Investment Fund, Saudi Arabia’s sovereign wealth vehicle, launched ERC – a wholly owned subsidiary – in June 2025 to build and operate facilities for Expo 2030.

    READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDF

    Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

    Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20334856/main.jpg
    Yasir Iqbal
  • Kuwait on track to hit oil production target

    7 October 2026

    Kuwait is on track to meet its target of having 4 million barrels a day (b/d) of oil production capacity by 2035, according to Kuwait Petroleum Corporation (KPC) chief executive Shaikh Nawaf Al-Sabah.

    Al-Sabah also said Kuwait is on course to increase non-associated gas production to 2 billion cubic feet a day by 2040.

    His comments come amid an ongoing crisis in Kuwait’s oil and gas sector linked to the regional conflict that began when the US and Israel attacked Iran on 28 February.

    The subsequent war has significantly disrupted shipping through the Strait of Hormuz, which is a crucial export route for Kuwaiti crude oil.

    Kuwait is currently producing around 2 million b/d of oil, down from 2.6 million b/d before the US and Israel attack.

    Speaking at a conference in London, Al-Sabah said: “We have the capacity to go back up to our current maximum sustainable capacity of 3 million b/d, if we have the export routes available, and this comes down to the ability to move oil through the Strait.”

    KPC is investing $9bn-$10bn a year in capital expenditure to meet its oil and gas production goals, according to Al-Sabah.

    He said: “We are doing this because we recognise that it is our hydrocarbons that will be most in demand a decade from now, and two decades from now – in fact, for the rest of our lifetimes.”

    Project Seef

    KPC is pushing ahead with the Al-Seef project, which focuses on developing three large offshore oil discoveries, Al-Sabah said.

    The offshore fields are known as Nokhatha, Julaia and Jazza. The development was first announced in February this year, about two weeks before the US and Israel attack on Iran.

    Al-Sabah said KPC is continuing with the project and believes the three fields collectively hold more than 3 billion barrels of recoverable oil.

    He said: “We are asking international oil companies to partner with us to develop those resources under an operating services contract.

    “So, we’re moving ahead according to the exact same schedule that we had put together even before the war began.”

    Al-Sabah did not say which international oil companies KPC has approached to help develop the three offshore fields.

    READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDF

    Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

    Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20315147/main.jpg
    Wil Crisp
  • Roshn plans new flagship development in Riyadh

    7 October 2026

     

    Saudi developer Roshn Group plans to develop its next flagship scheme in north Riyadh, spanning an area of 13.7 square kilometres. 

    Roshn is looking to appoint lead design consultants to deliver detailed design, tender documentation and construction documents across the scheme, known as Plot 1.

    The scope covers all infrastructure, utilities, public realm works and site adaptation of Roshn’s residential prototypes, split across two work packages.

    Part 1 covers phases A, B and E, which collectively span about 7.8 million square metres (sq m) and will comprise 17,000 units.

    Part 2 includes phases C and D, which will span about 4.7 million sq m and comprise more than 15,000 units.

    The development is bordered by Expo 2030, King Abdulaziz Park, the Sports Innovation Lab Zone and the National Housing Company-developed Khozam district.

    It will be a residential-led mixed-use development, also featuring retail, offices, hospitality, education and civic facilities.

    Connectivity is a core plank of the masterplan, with two metro stations planned: one at the existing Line 4/proposed Line 7 interchange and another dedicated Line 7 stop. The scheme would also be served by the future Qiddiya high-speed rail and a possible King Salman Road diversion.

    Plot 1 builds on Roshn’s existing footprint in the capital, notably the multi-phase Sedra community, as the developer expands beyond single-family housing into mixed-use districts under its Roshn 3.0 strategy.

    Last month, Roshn Group announced that it had signed a preliminary agreement with Talaat Moustafa Group (TMG) Saudi, the local subsidiary of Egyptian developer Talaat Moustafa Group, to establish a joint venture to explore and develop a mixed-use project in Riyadh.

    Under the agreement, TMG will hold a 51% stake in the joint company, while Roshn Group will hold 49%.

    The agreement sets out a framework for the two groups to assess a potential partnership for the project’s phased development, which is planned as a residential-led, mixed-use community featuring retail, commercial, hospitality, leisure, healthcare and education facilities, alongside parks and public spaces.

    Roshn Group and TMG Saudi plan to conduct detailed master planning and develop the project’s business case.

    Preliminary studies indicate the development could include more than 55,000 residential units across all phases.

    Roshn Group did not disclose the exact project location in its announcement.

    As a Public Investment Fund-owned developer, Roshn remains a key vehicle for delivering Vision 2030’s housing programme, which targets 70% Saudi home ownership, alongside the kingdom’s wider quality-of-life and economic diversification agendas.

    READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDF

    Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

    Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19786131/main.jpg
    Yasir Iqbal