Saudi’s Mining Exploration Licenses:Unlocking Economic Potential and Foreign Investment
The last round of Saudi Arabia mining exploration licenses was issued in March of this year(2025). This licensing scheme covers untapped demographics, catering to both local and international investors.
The provision of new licenses is part of the Kingdom's ambitions to tap into its $2.5 trillion unexplored mining potential.
In fact, there has been a rise in mining exploration licenses in recent years as the Kingdom seeks to consolidate ongoing policy reforms to revitalize a private sector-led mining industry. Last year, Saudi Arabia issued 2,401 mining licenses spanning diverse exploration activities.
2025 Exploration Licensing: Key Projects and Winning Bidders
The licensing scheme is focused on the country's first-ever mineralized belts at the Jabal Sayid and Al Hajjar sites.
The exploration areas span 4,788 kilometers. These regions are known to be rich in vital minerals such as copper, zinc, lead, gold, and silver.
Around 14 local and international companies have participated in the auction. This fierce international competition is a testament to the country's successful policymaking, which created an enabling environment that supports the growth of these businesses and reduces barriers to entry.
Leading local operators such as Ajlan and Bros-Norin for Mining acquired the license for the southern Al-Hajjar site. A consortium involving Artar, Gold and Minerals Ltd Co., and Jacaranda, led by Australian company Hancock Prospecting, acquired the license for the northern Al-Hajjar site.
Meanwhile, Vedanta Ltd., the Indian mining giant, won the exploration permit for the Jabal Sayid belt. The second license for the same site went to a consortium of Ajlan & Bros Mining and Chinese mining giant Zijin Mining, which ranks among the world’s top five.
Recipient companies will invest about SR366 million ($97.6 million) over the next three years to fund exploration and drilling activities.
The new licensing awards play into the Kingdom's strategic push to grant exploration licenses for more than 50,000 square kilometers in 2025. Foreign companies have so far won 35% of mining licenses issued by the Kingdom this year, demonstrating the sector's strategic importance as a key driver of FDI.
Where Do Licensing Schemes Fit into the National Mining Objectives?
The mining sector’s growth is crucial for the Saudi economy in the next decade. By 2030, if properly explored, this mining industry will contribute $70-80 billion to the GDP and create over 250,000 jobs.
For this to happen, Saudi Arabia has committed to boosting domestic production and exploration. As a result, annual spending on exploration has increased by 32%, far above the global average of 6-8%.
The new licensing scheme aligns with long-standing goals of developing a robust domestic mineral processing industry, and reducing the reliance on exports. This approach ultimately supports industrialization and underpins the growth of sectors like manufacturing and renewable energy.
Moreover, the country has been focusing on increasing the mining and refining of high-value minerals like lithium, which is critical for EV battery production and solar panels. A key highlight occurred in December 2024, when the Kingdom successfully extracted lithium from brine samples on Aramco's oilfields.
Saudi Arabia’s rich mineral resources, mining-friendly regulations, and compelling exploration prospects, make it an enticing jurisdiction for global businesses and investors alike. The government has been consistently proactive in fostering streamlined licensing processes and simplified market entry for investors.
The new licensing scheme was implemented in tandem with the second phase of the Mining Exploration Enablement program. This government-led initiative seeks to help businesses accelerate time to market and mitigate specific risks involved in early-stage exploration.
Additionally, under the Mining Investment Law, the Kingdom presents a myriad of incentives, which include allowing 100% ownership of foreign companies. It also provides financing up to 75% of capital costs through the Saudi Industrial Development Fund (SIDF).
This dynamic mining ecosystem is characterized by strategic partnerships with foreign experts, looking to tap into this market. In the Future Minerals Forum 2025, Saudi Arabia signed agreements with six countries to boost international partnerships, including a deal with the UK.
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