Saudi Arabia's Ministry of Industry and Mineral Resources has announced that eight leading firms in the mining sector have qualified in the race for the licence of the largest mineral exploration site located at Khnaigiuyah region of the kingdom, reported SPA. 

 

These include big global names such as Canada's Ivanhoe Electric; UK's Moxico Resources and Hong Kong-based Norin Mining in addition to Indian groups Essel Mining & Industries Limited and Vedanta Limited.  

 

Also vying for the project are local firms Alara Saudi Ventures; Al Masane Al Kobra Mining Company (AMAK) and Saudi mining giant Ma’aden.

 

The project comes in line with Saudi Arabia’s Vision 2030, which seeks to transform the mining sector into the third pillar of the national industries.

 

The selection of qualified bidders marks the end of the first stage of the licensing round process, stated the SPA report.

 

According to a senior MIM official, the Al Khunayqiyah site is rich in zin and copper deposits.

 

The largest exploration site in the kingdom covering an area of more than 350 sq km, Al Khunayqiyah has a huge mining potential of approximately 25 million tonnes of ore at 4.11% of zinc and 0.56% of copper.

 

It will go into production once the tendering documents are issued and the mining company is appointed, according to the head of the mining strategy department.

 

The ministry official said the qualified bidders have been given two months time to complete and submit their proposals.

 

The proposal submissions will be assessed based on a number of criteria, including technical and commercial terms, financial and social and environmental management plans, he stated.

 

According to him, MIM will be calling these qualified bidders to a conference being organized by the Ministry later this month where they will be updated on the next stages of the licensing round process.

 

Considering the emphasis Saudi Arabia is placing on environmental, social and governance (ESG) as it seeks to lead and transform the region’s mining sector, bidders will need to demonstrate how they will uphold these principles, he added.

 

Following the proposal stage, the Ministry is likely to select a single successful bidder who will enter to final negotiations on the terms of the exploration license, or alternatively, if two or more proposals scores fall within a comparative range, reported SPA.

 

The Ministry will designate these bidders as ‘Competitive Bidders’ and invite them to participate in a final licensing round stage in the form of a Multi-Round Auction, it added.