Saudi Arabia's Mining Sector Surpasses $2.5 Trillion in Value

KSA, 18 April, 2024 :  Saudi Arabia's mining sector has reached a value of $2.5 trillion, as reported by the kingdom's National Industrial and Mining Information Centre. Since the start of 2023, the country has issued 152 industrial licenses, bringing the total number of operational and under-construction factories to 11,672 by January 2024, with investments totaling 1.539 trillion Saudi riyals.

To boost exploration, the kingdom invested SAR682.5 million ($182 million) in exploration incentives by the end of 2023. Significant discoveries, including substantial gold reserves in the Mansoura and Masara mines, have enhanced Saudi Arabia's mineral potential, with an annual gold production capacity projected at 250,000 ounces.

Khalid Al-Mudaifer, Saudi’s Vice Minister of Industry and Mineral Resources for Mining Affairs, highlighted government initiatives to support the sector. These include creating a favorable business environment, streamlining licensing with the Mining Investment Law, and minimizing environmental impacts while maximizing local community benefits. A comprehensive geological survey program has also been launched to gather crucial data.

The Saudi Industrial Development Fund is financing advanced exploration and mining projects, covering up to 75% of eligible project costs. Additionally, the kingdom introduced the Saudi Mining Services Company (ESNAD) initiative to aid mining investments and improve monitoring procedures.

Aligned with Vision 2030, Saudi Arabia aims to boost the mining sector's GDP contribution to SAR176 billion by 2030.

Source : www.zawya.com