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The Industry and Mineral Resources Ministry has unveiled a fresh incentives package worth SAR 685 mn to boost mineral exploration in the Kingdom, it said in a post on X yesterday. The program is being rolled out in collaboration with the Investment Ministry and aims to reduce early-stage risk for exploration companies.
Ironing out the details: Companies with valid exploration licenses of under five years could unlock up to SAR 7.5 mn for each license, according to the ministry. Each firm can qualify for up to 15 licenses in accordance with the program’s terms and conditions.
We knew this was in the works: The Industry and Mineral Resources Ministry announced plans for the mineral exploration incentive program earlier this year as part of efforts to expand the sector and tap reserves of gold, phosphate and others.
Who’s eligible: Companies prospecting for critical minerals including copper, lithium nickel and rare earth minerals (REE), according to the ministry’s mining platform Taadeen. Activities should also be focused on underexplored regions. Preference will go to companies that build local talent and that have track records in greenfield exploration.
The policy context: The nation’s untapped mineral resources are now worth as much as USD 2.5 tn, or 90% more than the last forecast in 2016, officials said earlier in January.
JEDDAH + LONDON METAL EXCHANGE
MEANWHILE- Jeddah could become a regional hub for trade in copper and zinc after the London Metal Exchange (LME) said it plans to list the city as a delivery point for the metals, according to a statement yesterday. The LME said the listing is subject to consultation on a technical change to its warehouse location framework. Jeddah would serve the Middle East, North and East Africa region, according to the statement.
What they said: “Saudi Arabia is an increasingly important global metals hub, and Jeddah fully meets with the operational and logistical criteria for new warehouse locations – such as being an important area of net consumption and having an effective transport network,” LME CEO Matthew Chamberlain said.
What’s next: Consultation on the proposal which would see relevant stakeholders amending a general clause in the LME’s policy on the approval of locations as delivery points related to warehouse insolvency. It aims to clarify “that some jurisdictions may require a court order to allow the withdrawal of metal” in case of warehouse operator insolvency. If passed, Jeddah will become an active delivery point after three months of approval for setting up the first warehouse company in the site.
