The Clap
The Kingdom has launched “new incentives” to enhance mining exploration in the country, totaling around SAR 685 million (approximately USD 182 million).
What
The Ministry of Industry and Mineral Resources explained that the incentives aim to reduce risks for exploration companies in their early stages.
Additionally, they aim to encourage investment in this vital sector in collaboration with the Ministry of Investment, in line with the goals of “Saudi Vision 2030.”
So What
The incentive package includes:
- A series of financial facilitations for companies and investors interested in investing in local mineral resource exploration activities.
- Giving priority to investors in exploration activities, with their commitment to sponsoring local talent and expertise in the mining sector.
- Supporting companies holding exploration licenses valid for less than five years, with each license eligible for support of up to SAR 7.5 million maximum.
- Each company can qualify for support for up to 15 licenses, subject to the program’s terms and conditions.
Some Context
Among the conditions for accessing these facilitations is that mineral exploration focuses on category “A” minerals, such as copper, lithium, and nickel, which are essential in the electric battery industry.
It is noteworthy that Saudi Arabia is striving to become a major hub for electric vehicle battery manufacturing, requiring these types of minerals that are in high demand globally.
The country is also focusing its current efforts on renewable energy and associated industries, such as electric vehicles, aiming to produce 500,000 electric vehicles by 2030.
Now What
The London Metal Exchange intends to list Jeddah Islamic Port on the Red Sea coast as a new delivery center for copper and zinc, contingent on consultation on a technical change within the exchange’s warehouse framework.
It is worth mentioning that warehouses registered with the London Metal Exchange, the world’s largest and oldest metal trading exchange are usually located in areas with increased metal consumption or major trading centers such as Rotterdam.
This comes as part of the Kingdom’s plan to launch an ambitious program for industrial development and logistics services under Saudi Vision 2030, aiming for the country to be a prominent player on the global stage in energy, mining, logistics services, and industry.
