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Saudi mining soars in 2021 amid serious government action, deputy minister says
RIYAD: Interest in Saudi mining investments has skyrocketed this year 2021, Khalid Al-Mudaifer, deputy minister of mining at the Ministry of Industry and Mineral Resources (MIM), told Arab News , on the sidelines of the top of the FII.
“We issued eight new mining licenses; it’s a big project, a multi-billion dollar project, ”he said in a maintenance.
The mining law is an investment law, so “it has to be competitive for people because investors have the choice to come here or go to another jurisdiction,” he said.
“We made sure Saudi Arabia is the best in the world, with the lowest mining tax in the world, because we want development, we want the long-term benefits of mining,” he said. -he declares. “If you do more value-added, more manufacturing in Saudi Arabia, you get a royalty discount of up to 90 percent.”
“We have received more applications in the nine months to September than in the past 20 years,” Al-Mudaifer told Arab News.
We have also issued, to date, 133 local exploration licenses and international exploration applications are being processed, he said. “It’s a big percentage because it’s almost 25%, a quarter of what we’ve done in 20 years,” Al-Mudaifer said.
In January of this year, the Kingdom decided to capitalize on the vast riches hidden underground in Saudi Arabia with the establishment of a mining fund and support for geological studies and exploration program activities.
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 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. .
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.