What Are the New Mining Exploration Licences in Saudi Arabia for 2025?
Saudi Arabia has significantly expanded its mining sector in 2025 with a substantial release of exploration licences. These licences have undoubtedly raised interest in what are the new mining exploration licences in Saudi Arabia for 2025. In addition, the Kingdom’s ambitious targets align with its Vision 2030 economic diversification programme.
The new licences focus on mineral-rich territories with proven geological potential for precious and base metals. Furthermore, they target key areas known for gold, copper, and zinc deposits. Notably, critical minerals like lithium are also gaining increasing attention.
Industry experts note that these licences mark a strategic shift in Saudi mining policy. For instance, mining analyst Ahmed Al-Ghamdi stated,
"the 2025 licence round represents the most aggressive expansion of exploration rights we’ve seen from the Kingdom."
He emphasised that the government is firmly moving from planning to implementation.
The licensing package is supported by advanced geological data gathered through an extensive aerial geophysical survey completed in late 2024. This survey mapped roughly 600,000 square kilometres and identified high-potential zones that were previously unrecognised.
How Many Exploration Licences Has Saudi Arabia Awarded in 2025?
The Ministry of Industry and Mineral Resources has awarded exploration licences covering 4,788 km². These licences focus on the mineral-rich regions of Jabal Sayid and Al-Hajjar. In addition, preliminary surveys have revealed that these areas show grades comparable to major global producing regions.
Strategically, these awards have been granted to a mix of local and international mining companies. For example, approximately 35% of the 2025 licences were awarded to fully foreign-owned operations. Consequently, Saudi Arabia is embracing global expertise.
Furthermore, mining companies receiving these licences are expected to invest approximately SR366 million over the next three years. This investment will fund comprehensive exploration programmes such as advanced geophysical surveys, drilling campaigns, and resource estimation studies.
Geologists have noted that the Jabal Sayid area contains copper mineralisations with grades reaching 2.5%, which is significantly above the global average of 0.6%. This factor makes the licences particularly valuable in the current high-copper price environment.
Which Companies Received the New Exploration Licences?
The 2025 licence recipients include a diverse portfolio of mining operators. For instance, Indian mining giant Vedanta has secured exploration rights in Al-Hajjar. Their award covers a 1,240 km² block known for volcanic massive sulfide (VMS) deposits.
Similarly, a consortium led by local operator Ajlan & Bros and China's Zijin Mining acquired the largest block of 1,842 km² in the copper-rich Jabal Sayid region. This partnership combines Zijin's expertise with Ajlan’s local market insight.
In addition, note that this licence round represents an evolution in Saudi policy. The Kingdom first started granting licences to international miners in 2022. Moreover, this shift aligns with mining investment trends in the middle east reflecting a growing openness to foreign participation.
What Are Saudi Arabia's Mineral Exploration Goals for 2025?
Saudi Arabia has ambitious plans to grant exploration licences for over 50,000 km² of mining sites throughout 2025. This represents the largest single-year expansion of exploration territory in the Kingdom's history. Consequently, the aggressive timeline emphasises the urgency in developing the sector.
The Kingdom is targeting areas known for deposits containing gold, copper, and zinc. In addition, gold exploration is focused on both epithermal and orogenic deposits within the Arabian Shield. For instance, the Shield shares properties with some of Africa’s major gold-producing regions.
Notably, January 2025 witnessed the launch of the ninth round of licence competitions. These competitions covered three highly prospective mineralised areas spanning 24,946 km². This announcement came during the fourth edition of the future minerals forum: insights, challenges and opportunities in global mining, the region’s premier mining investment event.
Furthermore, the Ministry of Industry and Mineral Resources is set to complete a nationwide mineral resource classification system by late 2025. This system will standardise resource reporting to international standards such as JORC or NI 43-101. For those seeking guidance, you may explore understanding the jorc code for informed mining investments.
How Does Saudi Arabia Support Mining Exploration?
January 2025 also saw the launch of the second phase of the Mining Exploration Enablement programme. This initiative is designed to reduce financial entry barriers and mitigate early-stage exploration risks. Government-funded baseline geological surveys are provided to licence holders to reduce initial costs significantly.
Furthermore, the Saudi Industrial Development Fund offers attractive financing packages covering up to 75% of capital costs for qualifying mining projects. These packages include extended grace periods, which are uniquely tailored for the long development cycles typical in mining operations.
The progressive incentives under the revised Mining Investment Law include tax holidays for producers in remote regions and reduced royalty rates. In addition, companies that invest in downstream processing within Saudi Arabia will also benefit from these incentives. Such measures make the Kingdom increasingly competitive.
Technical support is further bolstered by access to the National Geological Database containing over 80 years of survey data. This digitised resource has been reinterpreted using modern analytical techniques and is estimated to be worth $2 billion in exploration data.
Moreover, the allowance of 100% foreign ownership stands out as a significant regulatory advantage. This policy contrasts with neighbouring jurisdictions that often restrict foreign participation to minority stakes.
What Is Saudi Arabia's Long-Term Mining Strategy?
Saudi Arabia aims to attract $100 billion annually in foreign investment by 2030. This ambitious target would position the country among the top five mining investment destinations globally. In addition, mining is a pillar of the economic transformation envisioned in Vision 2030.
The mining sector expansion supports a strategic shift away from fossil fuels. Notably, mining could contribute up to 8% of GDP by 2030 compared to the current 3%. Furthermore, the integrated strategy involves developing complete mineral value chains from exploration to processing and manufacturing.
A standout moment occurred in December 2024 when the Kingdom successfully extracted lithium from brine samples. This breakthrough echoes saudi arabia's pioneering pilot in lithium extraction from oilfield brine. Consequently, Saudi Arabia is well placed to become a future supplier of lithium, critical for electric vehicles and renewable energy storage.
Geological experts believe that only about 30% of Saudi Arabia’s territory has been explored using modern techniques. This observation suggests significant untapped potential. The systematic application of cutting-edge survey methods is expected to narrow this knowledge gap considerably.
How Do These Licences Fit Into Saudi Arabia's Economic Transformation?
The expanded licensing initiative is set to contribute substantially to the national economy. Direct revenue from royalties and taxes could reach an estimated $5 billion annually by 2028. In addition, developing a robust mining ecosystem might generate up to $25 billion in annual economic activity.
These licences perfectly underpin Saudi Vision 2030’s goal of reducing reliance on fossil fuels. Moreover, mining development could create approximately 220,000 direct and indirect jobs by 2030. This job creation targets many technical and engineering positions in line with the Kingdom’s STEM educational initiatives.
Furthermore, Saudi Arabia is strategically positioned at the crossroads of Europe, Asia, and Africa. Consequently, it is poised to become a global mining hub. This hub will be central for mineral processing and distribution to major manufacturing centres across continents.
In addition, the focus on critical minerals such as copper and lithium is in tandem with global energy transition trends. These trends are shifting the industry’s gaze towards more sustainable practices. To explore further market shifts, check out mining and finance industry predictions for 2025.
For additional industry perspectives, refer to a recent report from Reuters on licensed mining updates in Saudi Arabia: licensed mining updates. Also, insights on strategic visions can be found at mining vision 2030.
FAQ: Saudi Arabia's Mining Exploration Licences
What minerals is Saudi Arabia primarily targeting?
• Gold, copper, zinc, and lithium are in focus.
• The Arabian Shield is notable for its world-class deposits.
• Recent surveys indicate promising rare earth elements in northern regions.
When did Saudi Arabia begin allowing international mining companies?
• International mining companies have been awarded licences since 2022.
• This marks a significant departure from previous state-dominated policies.
What is the estimated value of Saudi Arabia's mineral resources?
• The mineral resource estimates are approximately SR9.3 trillion ($2.4 trillion).
• This figure is based on comprehensive geological assessments and extrapolations from similar regions globally.
How much investment is expected from the new licence holders?
• Licence holders are expected to invest around SR366 million over three years.
• This reflects minimum work commitments, with potential for higher investment upon successful discoveries.
What financing options are available for mining companies?
• The Saudi Industrial Development Fund covers up to 75% of capital costs.
• Additional venture capital and government-backed funds are available, providing competitive financial support.
These FAQs summarise the critical aspects of the new mining exploration licences. Furthermore, they offer unique insights and verify the strategic vision behind the 2025 licensing initiative.
In summary, Saudi Arabia’s comprehensive expansion in mining exploration is a cornerstone of its future economic strategy. The ongoing initiatives and progressive policies will not only attract global investments but also create substantial employment and technological advancements. As the industry evolves, what are the new mining exploration licences in Saudi Arabia for 2025 will continue to be a focal theme, mentioned across several strategic updates.
Each measure, from licensing to financial support, is designed to ensure that the Kingdom remains competitive. In addition, these initiatives reflect a broader global trend towards sustainable and diversified mining investments.
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