Saudi Arabia opens bidding for 10th round of mineral exploration

Saudi Arabia has opened a new round of bidding for mineral exploration licenses as it continues its economic diversification programme.

The country's Ministry of Industry and Mineral Resources said in a statement on Monday that the three mineral belts span five regions, Mecca, Medina, Riyadh, Qassim and Hail, and are rich in gold, silver, copper and zinc. The mineral belts that are set to be explored cover an area of 13,000 km2.

According to the government, the estimated value of the minerals in Saudi Arabia is 9.4 trillion Riyals, equivalent to $2.5 trillion.

Key projects identified in the press release include the Sukhaybarat Mine with an estimated 729,000 ounces of gold, and the Bulghah Mine, estimated to produce 50,000 ounces of gold per year, both in the Sukhaybarat-Al-Safra belt.

The announcement is the 10th round of exploration licenses since 2021, which initially offered one site at 353km2, with total exploration spending at roughly $280 million.

"This tremendous growth reflects strong government support, driven by an attractive investment environment, a reformed mining investment law and regulations, ranked among the best globally, and ongoing geological survey programs," the statement said.

According to the ministry, prequalification is open until 15 December, with an auction for the licenses being planned in the first quarter of 2026.

The exploration of minerals in Saudi Arabia is part of the kingdom's efforts to diversify its economy away from oil, known as Vision 2030.

Spearheaded by Crown Prince Muhammad Bin Salman and the country's Public Investment Fund (PIF), Vision 2030's diversification has included major investments in sports and entertainment, including the Saudi Pro League, as well as a nascent tourism industry.

Saudi Arabia's investment minister, Khalid al-Falih, told an investment conference in Riyadh that 90 per cent of the $31.7 billion of foreign investment into the country was in the non-oil sector.

However, Saudi Arabia has struggled to move away from its dependence on oil revenues, which still make up a large portion of state revenue.

Amid continued low oil prices, Saudi Arabia's budget for 2026 is set to be in $44 billion deficit.