Unless a nation learns how to use it's God given resources to manufacture refined and finished products, it will always remain backward.
KSA has the largest natural and mineral wealth in the world after Russia and USA
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ArabianEmpires&Caliphates
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KSA is one of the most developed countries in the world and we have one of the highest scientific and industrial growth rates in the world. Suggest taking a look at the “made in KSA” thread on the Arab section to enlighten yourself or just take a look at my post above yours dealing with alternative energy and the domestically built solar parks, solar panels, wind parks etc.
We have a long way to go like that of any developing country but our future is very promising by all accounts.
ArabianEmpires&Caliphates
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Saudi Arabia launches $28 billion renewable energy funding initiative
Saudi Arabia has commenced a renewable energy development programme offering loans for clean energy projects and the manufacturers of renewable energy components, according to a report by Reuters.
The $28 billion Saudi Industrial Development Fund’s Mtujadeda programme is expected to help the emirate move from its dependence on crude oil, towards other diversified energy sources.
Saudi Arabia has traditionally relied on crude oil to fuel it’s electricity needs but wants to include more natural gas and other clean energy alternatives.
The programme opened for applications on Sunday, and will offer loans as high as 1.2 billion riyals, depending on the applicant company’s ownership status, and will target independent power production projects.
The programmes will also support firms in other sectors in the region that want to start using renewable energy.
“Whether you’re in manufacturing, agriculture or retail, if you want to deploy renewable energy, we will finance it,” said Ibrahim Almojel, the fund’s director general. "For renewables to be adopted in the kingdom, we need to support it.”
“Our objective is really to find new sources of energy to be less dependent on oil and to enable the manufacturing sector to continue its progress,” said Ahmed AlGwaiz, the industrial fund’s vice president of risk management, adding that the loans will be available for Saudi or foreign-owned companies. “We treat all clients, as long as they’re in Saudi Arabia, the same.”
The fund has already entered into dialogue with “large retailers and large agriculture producers” interested in using renewable energy, according to Almojel.
The fund, which was started in 1979, is being reworked by Crown Prince Mohammed bin Salman, to suit his plan for life after oil, dubbed Vision 2030, and was also recently expanded to allow for the financing of energy, logistics and mining projects.
https://www.smart-energy.com/indust...-billion-renewable-energy-funding-initiative/
New Renewable Energy Deals in Saudi Arabia
Saudi Arabian plans for renewable energy
Saudi Arabia has realized that renewable energy, in particular, solar power is the way to achieve sustainability. As a result, it has signed numerous renewable energy deals over the year to build Saudi Arabian solar power plants. The focus of these deals is to invest in solar, wind, and concentrated solar. The Renewable Energy Project Development Office (REPDO) was established as part of the Ministry of Energy in 2017 to achieve the objectives of the National Renewable Energy Program (NERP) to accomplish vision 2030.
Second Round of NERP
Under the second round of NERP, KSA plans to work on at least 12 different Saudi Arabian solar power projects worth a capacity of 3.1 GW in 2019. Seven projects providing solar power in Saudi Arabia capable of 1.51GW of electricity have already been announced, the details of which are as follows
Additionally, it would create over 4,500 employment opportunities throughout the execution of the project. The advisors for this round include Sumitomo Mitsui Banking Corporation (SMBC) from Japan as the lead and financial advisor. DLA Piper from the UK acted as the legal advisor, whereas the technical advisor was the German Fichtner.
The projects would be split among two groups based on financing. Financing for Group A will be via corporate funding after analyzing the balance sheet of the consortium members or through limited or non-recourse debt. For Group B, limited or non-recourse debt facilities would provide financing. The REPDO would oversee 30% of the total development, whereas the sovereign wealth fund (the public investment fund) would manage the rest.
Wind Power Generation
Saudi Arabia realizing the advantages of wind energy, has also announced the establishment of the country’s first wind farm. In addition to ensuring solar power in Saudi Arabia, other forms of alternative energy like the wind is essential. The 400-megawatt Dumat Al Jandal facility is expected to start operations in 2022 and would be the biggest wind power plant in the Middle East.
Ethraa and its Mission
The third round is expected to tender at least another six projects in the last quarter of the year. Ethraa stands behind Saudi Arabian vision of 2030 and plays its part in shifting to renewable energy. Join Ethraa in its mission of achieving a solar-powered KSA. Contact us for more information.
https://www.ethraa-a.com/new-renewable-energy-deals-in-saudi-arabia/
Saudi Arabia’s 300 MW Sakaka solar plant comes online
The PV facility was completed a month and a half ahead of schedule by Saudi energy company ACWA Power. The project will sell power at $0.0236/kWh.
NOVEMBER 27, 2019 EMILIANO BELLINI
The 300 MW Sakaka PV project.
Image: ACWA Power
Saudi energy group ACWA has announced the completion of the 300 MW Sakaka solar project.
The plant, Saudi Arabia’s second operational solar park, was grid connected a month and a half ahead of schedule and has begun a commercial operation pilot phase, ACWA announced in a press release.
“The solar project has established a 100% local employment rate within the first year of operation, with 90% of the workforce comprised by the youth of [the] Al Jouf region,” said the Saudi power company. “Additionally, Sakaka PV IPP [independent power producer] registered over 30% of contractual local content during the construction and development phases.”
The project was tendered by the kingdom’s Renewable Energy Project Development Office (REPDO) in February 2017 alongside 400 MW of wind power capacity. Some 11 months later, REPDO announced it had shortlisted bids by ACWA, a consortium formed by Japan’s Marubeni Corp, Khaled Ahmed Juffali Energy & Utilities Limited and Axia Power Holdings BV for the tender’s final phase. That came after ACWA submitted the second lowest bid, offering a final solar electricity price of SAR0.08872/kWh ($0.0236) with the lowest – the SAR0.06697/kWh submitted by a consortium formed by UAE solar developer Masdar and French utility EDF – rejected before the final phase of the procurement. The Marubeni consortium offered SAR0.09976. REPDO had selected 27 companies in early April to proceed to the request for proposals stage of the tender.
ACWA secured SAR1.2 billion ($320 million) for the project a year ago.
The Sakaka project was the first large scale PV facility tendered by Saudi Arabia. In January, REPDO launched a tender for the development and construction of seven new solar projects with a combined generation capacity of 1,515 MW. That procurement exercise has so far attracted interest from more than 250 companies. The tender is part of the second phase of the kingdom’s National Renewable Energy Program.
https://www.pv-magazine.com/2019/11/27/saudi-arabias-300-mw-sakaka-solar-plant-comes-online/
Great news.
Saudi Arabia has commenced a renewable energy development programme offering loans for clean energy projects and the manufacturers of renewable energy components, according to a report by Reuters.
The $28 billion Saudi Industrial Development Fund’s Mtujadeda programme is expected to help the emirate move from its dependence on crude oil, towards other diversified energy sources.
Saudi Arabia has traditionally relied on crude oil to fuel it’s electricity needs but wants to include more natural gas and other clean energy alternatives.
The programme opened for applications on Sunday, and will offer loans as high as 1.2 billion riyals, depending on the applicant company’s ownership status, and will target independent power production projects.
The programmes will also support firms in other sectors in the region that want to start using renewable energy.
“Whether you’re in manufacturing, agriculture or retail, if you want to deploy renewable energy, we will finance it,” said Ibrahim Almojel, the fund’s director general. "For renewables to be adopted in the kingdom, we need to support it.”
“Our objective is really to find new sources of energy to be less dependent on oil and to enable the manufacturing sector to continue its progress,” said Ahmed AlGwaiz, the industrial fund’s vice president of risk management, adding that the loans will be available for Saudi or foreign-owned companies. “We treat all clients, as long as they’re in Saudi Arabia, the same.”
The fund has already entered into dialogue with “large retailers and large agriculture producers” interested in using renewable energy, according to Almojel.
The fund, which was started in 1979, is being reworked by Crown Prince Mohammed bin Salman, to suit his plan for life after oil, dubbed Vision 2030, and was also recently expanded to allow for the financing of energy, logistics and mining projects.
https://www.smart-energy.com/indust...-billion-renewable-energy-funding-initiative/
New Renewable Energy Deals in Saudi Arabia
Saudi Arabian plans for renewable energy
Saudi Arabia has realized that renewable energy, in particular, solar power is the way to achieve sustainability. As a result, it has signed numerous renewable energy deals over the year to build Saudi Arabian solar power plants. The focus of these deals is to invest in solar, wind, and concentrated solar. The Renewable Energy Project Development Office (REPDO) was established as part of the Ministry of Energy in 2017 to achieve the objectives of the National Renewable Energy Program (NERP) to accomplish vision 2030.
Second Round of NERP
Under the second round of NERP, KSA plans to work on at least 12 different Saudi Arabian solar power projects worth a capacity of 3.1 GW in 2019. Seven projects providing solar power in Saudi Arabia capable of 1.51GW of electricity have already been announced, the details of which are as follows
- Medina solar PV independent power project (IPP): Medina Province (50MW)
- Rafha solar PV IPP: Northern Borders province (45MW)
- Qurayyat solar PV IPP: Al-Jawf Province (200MW)
- Al-Faisaliah solar PV IPP: Mecca Province (600MW)
- Rabigh solar PV IPP: Mecca Province (300MW)
- Jeddah solar PV IPP: Mecca Province (300MW)
- Mahd al-Dahab solar PV IPP: Medina Province (20MW)
Additionally, it would create over 4,500 employment opportunities throughout the execution of the project. The advisors for this round include Sumitomo Mitsui Banking Corporation (SMBC) from Japan as the lead and financial advisor. DLA Piper from the UK acted as the legal advisor, whereas the technical advisor was the German Fichtner.
The projects would be split among two groups based on financing. Financing for Group A will be via corporate funding after analyzing the balance sheet of the consortium members or through limited or non-recourse debt. For Group B, limited or non-recourse debt facilities would provide financing. The REPDO would oversee 30% of the total development, whereas the sovereign wealth fund (the public investment fund) would manage the rest.
Wind Power Generation
Saudi Arabia realizing the advantages of wind energy, has also announced the establishment of the country’s first wind farm. In addition to ensuring solar power in Saudi Arabia, other forms of alternative energy like the wind is essential. The 400-megawatt Dumat Al Jandal facility is expected to start operations in 2022 and would be the biggest wind power plant in the Middle East.
Ethraa and its Mission
The third round is expected to tender at least another six projects in the last quarter of the year. Ethraa stands behind Saudi Arabian vision of 2030 and plays its part in shifting to renewable energy. Join Ethraa in its mission of achieving a solar-powered KSA. Contact us for more information.
https://www.ethraa-a.com/new-renewable-energy-deals-in-saudi-arabia/
Saudi Arabia’s 300 MW Sakaka solar plant comes online
The PV facility was completed a month and a half ahead of schedule by Saudi energy company ACWA Power. The project will sell power at $0.0236/kWh.
NOVEMBER 27, 2019 EMILIANO BELLINI
The 300 MW Sakaka PV project.
Image: ACWA Power
Saudi energy group ACWA has announced the completion of the 300 MW Sakaka solar project.
The plant, Saudi Arabia’s second operational solar park, was grid connected a month and a half ahead of schedule and has begun a commercial operation pilot phase, ACWA announced in a press release.
“The solar project has established a 100% local employment rate within the first year of operation, with 90% of the workforce comprised by the youth of [the] Al Jouf region,” said the Saudi power company. “Additionally, Sakaka PV IPP [independent power producer] registered over 30% of contractual local content during the construction and development phases.”
The project was tendered by the kingdom’s Renewable Energy Project Development Office (REPDO) in February 2017 alongside 400 MW of wind power capacity. Some 11 months later, REPDO announced it had shortlisted bids by ACWA, a consortium formed by Japan’s Marubeni Corp, Khaled Ahmed Juffali Energy & Utilities Limited and Axia Power Holdings BV for the tender’s final phase. That came after ACWA submitted the second lowest bid, offering a final solar electricity price of SAR0.08872/kWh ($0.0236) with the lowest – the SAR0.06697/kWh submitted by a consortium formed by UAE solar developer Masdar and French utility EDF – rejected before the final phase of the procurement. The Marubeni consortium offered SAR0.09976. REPDO had selected 27 companies in early April to proceed to the request for proposals stage of the tender.
ACWA secured SAR1.2 billion ($320 million) for the project a year ago.
The Sakaka project was the first large scale PV facility tendered by Saudi Arabia. In January, REPDO launched a tender for the development and construction of seven new solar projects with a combined generation capacity of 1,515 MW. That procurement exercise has so far attracted interest from more than 250 companies. The tender is part of the second phase of the kingdom’s National Renewable Energy Program.
https://www.pv-magazine.com/2019/11/27/saudi-arabias-300-mw-sakaka-solar-plant-comes-online/
Great news.
ArabianEmpires&Caliphates
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ArabianEmpires&Caliphates
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MASALLAH
Arabia was always a rich area of the world since ancient times. Locals rarely ever lacked anything. The challenge is the rapid population increase and climate change but solutions for that can be found and are being found. We have one of the largest coastlines in the world so water should never be a problem (desalination, we already have the most advanced desalination plants in the world) and there are very ambitious plans to plant millions of trees in KSA and increase the forest cover. There are solutions for very challenge. Space is not lacking. If the Chinese and Israelis can turn huge arid areas into fertile ones, we will too.
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ArabianEmpires&Caliphates
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Full geological survey of Arabian Shield in cards
February 15, 2020
View attachment 611354
Deputy Minister of Industry and Mineral Resources for Mining Affairs Khalid Al-Mudaifer
Saudi Gazette report
JEDDAH — Deputy Minister of Industry and Mineral Resources for Mining Affairs Khalid Al-Mudaifer has said that the advanced mining law will be issued soon. He also said that the ministry is in the process of signing a number of contracts during the current year, including one for a full geological survey of the Arabian Shield in the Kingdom with an area of 700,000 sq. km. “It will be one of the largest geological surveys in the world and it consists of an atmospheric physical survey, a ground and chemical survey, and the creation of maps and additional information on minerals, wealth and water, and its results will appear during the year 2025,” he said.
The minister said this in a statement to the Saudi Press Agency after opening a symposium on sustainable development and the optimal exploitation of mineral resources titled “Building materials” in Jeddah on Wednesday. “There are many huge investment opportunities that are being worked out and these included those related to the memorandum of understanding signed last year concerned with the establishment of a copper and zinc refinery with a huge investment.”
Al-Mudaifer said the comprehensive strategy for mining and mineral industries, which was approved by the Council of Ministers one and a half years ago, is beginning to show its results now, and this includes a big increase in financing mining projects by Industrial Development Fund, reaching 75 percent of the cost of the project.
He said the ministry has started, in the first phase, collecting geological information for the national geological database, and launched a mining portal that enables the beneficiaries to complete the procedures for obtaining a new license or renewal of license within seven days. “We hope that in the future the procedures for this will take a single day instead of six months in the past,” he said.
The participants recommended improving the procedures for mining licenses, governance and digitization, to raise the level of business performance in the mining sector with the possibility of benefiting from the experience of the Kingdom in launching an electronic platform called “mining platform”.
http://saudigazette.com.sa/article/...l-geological-survey-ofArabian-Shield-in-cards
Saudi Arabia plans $110 bln investment to develop al-Jafurah gas field
https://english.alarabiya.net/en/bu...ra-with-plans-to-develop-al-Jufrah-field.html
February 15, 2020
View attachment 611354
Deputy Minister of Industry and Mineral Resources for Mining Affairs Khalid Al-Mudaifer
Saudi Gazette report
JEDDAH — Deputy Minister of Industry and Mineral Resources for Mining Affairs Khalid Al-Mudaifer has said that the advanced mining law will be issued soon. He also said that the ministry is in the process of signing a number of contracts during the current year, including one for a full geological survey of the Arabian Shield in the Kingdom with an area of 700,000 sq. km. “It will be one of the largest geological surveys in the world and it consists of an atmospheric physical survey, a ground and chemical survey, and the creation of maps and additional information on minerals, wealth and water, and its results will appear during the year 2025,” he said.
The minister said this in a statement to the Saudi Press Agency after opening a symposium on sustainable development and the optimal exploitation of mineral resources titled “Building materials” in Jeddah on Wednesday. “There are many huge investment opportunities that are being worked out and these included those related to the memorandum of understanding signed last year concerned with the establishment of a copper and zinc refinery with a huge investment.”
Al-Mudaifer said the comprehensive strategy for mining and mineral industries, which was approved by the Council of Ministers one and a half years ago, is beginning to show its results now, and this includes a big increase in financing mining projects by Industrial Development Fund, reaching 75 percent of the cost of the project.
He said the ministry has started, in the first phase, collecting geological information for the national geological database, and launched a mining portal that enables the beneficiaries to complete the procedures for obtaining a new license or renewal of license within seven days. “We hope that in the future the procedures for this will take a single day instead of six months in the past,” he said.
The participants recommended improving the procedures for mining licenses, governance and digitization, to raise the level of business performance in the mining sector with the possibility of benefiting from the experience of the Kingdom in launching an electronic platform called “mining platform”.
http://saudigazette.com.sa/article/...l-geological-survey-ofArabian-Shield-in-cards
Saudi Arabia plans $110 bln investment to develop al-Jafurah gas field
https://english.alarabiya.net/en/bu...ra-with-plans-to-develop-al-Jufrah-field.html
ArabianEmpires&Caliphates
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In terms of future exploration the mighty Rub' al-Khali is the key. Once this giant area begins to be explored and the advancement of technology (as well as costs) allows large surveys and drilling, whatever oil, gas and minerals that have been found elsewhere in KSA, will be dwarfed given the geology of that region.
The country and leadership, business (private sector as well as public firms) need to do a better job of exploiting our mineral wealth as well, largely untapped.
Critical minerals necessary for the defense sector and even uranium excavation (ongoing while we speak), phosphates could be converted to uranium as well (apparently we have one of the largest reserves of both) should increase and speed up.
The future goldmine that is solar energy and wind energy and other areas of alternative energy. No need to waste gas (when it should be exported) as energy or oil for that matter. Clean energy and thus a combination of nuclear is necessary as well which is apparently the plan on a large scale until the right firm is found and the political ramifications are manured around.
Along with the greening projects (planting of 100 millions of trees across the country) and investment in tech and science.
We should not waste any of our enormous potential whether it is hydrocarbons, alternative energy sources of various kinds, minerals, nature/environment and tech/science.
A global financial crisis is approaching but KSA remains (GCC as a whole too) one of the best prepared regions of the world to face such a financial crisis given the giant sovereign wealth funds, almost non-existent debt and loans, enormous investment across the world, gold reserves, potential, youth population and ongoing economic reforms (praiseworthy).
In fact it could even become a blessing in disguise as a genuine long-term financial crisis would indirectly help speed up large parts of the Vision 2030 while force the hands of the leadership to transform the country from an insanely pampered welfare state with a huge public sector (often ineffective contrary to the largely effective and dynamic private sector whose increasing role in the economy cannot be underestimated) to a genuinely competitive economy where talent is not wasted or forced to migrate to the West and thrive.
Already most of the idiotic and economically hurting own goals (moronic laws) have been removed. Next should be not to close shops during players. This costs billions for the country each year. Tougher attempts to combat corruption albeit KSA is ranking rather well even on a worldwide scale on this front. Hopefully MbS can steamroll the royal family (which I imagine is his plane) and create a "Bin Salman" dynasty and rail it in (cost-wise too) much like what occurred in UAE and Jordan before. Of course every power in the world will try to prevent this.
What is a good sign is that KSA is winning the oil war (long-term) and that 30 dollars per barrel is budgeted with (can be) and that the increasing market share will control the possible damage before the oil price jumps up again. Each month KSA is less and less dependent on that resource anyway, with the non-oil sector growing despite a chaotic neighborhood and signs of economic recession globally before the coronavirus emerged.
What was encouraging and a clear sign of the economy being overall good, was the quick reaction by the government to the coronavirus crisis. Economic initiatives and support for the private sector much like in wealthy European states and the US.
And let us hope that such crisis will be used to create greater regional Arab integration and pave the way for future regional integration and the emergence of large and powerful Arab federal states across the Arab world. The only way forward.
I see this is a great opportunity much like what happened in 2014. Without that none of the changes would have occurred for the better.
Saudi Arabia calls for G20 summit to help inoculate global economy
https://www.arabnews.com/node/1644591/business-economy
SR12 billion program launched to support Saudi economy
https://www.arabnews.com/node/1644976/saudi-arabia
The country and leadership, business (private sector as well as public firms) need to do a better job of exploiting our mineral wealth as well, largely untapped.
Critical minerals necessary for the defense sector and even uranium excavation (ongoing while we speak), phosphates could be converted to uranium as well (apparently we have one of the largest reserves of both) should increase and speed up.
The future goldmine that is solar energy and wind energy and other areas of alternative energy. No need to waste gas (when it should be exported) as energy or oil for that matter. Clean energy and thus a combination of nuclear is necessary as well which is apparently the plan on a large scale until the right firm is found and the political ramifications are manured around.
Along with the greening projects (planting of 100 millions of trees across the country) and investment in tech and science.
We should not waste any of our enormous potential whether it is hydrocarbons, alternative energy sources of various kinds, minerals, nature/environment and tech/science.
A global financial crisis is approaching but KSA remains (GCC as a whole too) one of the best prepared regions of the world to face such a financial crisis given the giant sovereign wealth funds, almost non-existent debt and loans, enormous investment across the world, gold reserves, potential, youth population and ongoing economic reforms (praiseworthy).
In fact it could even become a blessing in disguise as a genuine long-term financial crisis would indirectly help speed up large parts of the Vision 2030 while force the hands of the leadership to transform the country from an insanely pampered welfare state with a huge public sector (often ineffective contrary to the largely effective and dynamic private sector whose increasing role in the economy cannot be underestimated) to a genuinely competitive economy where talent is not wasted or forced to migrate to the West and thrive.
Already most of the idiotic and economically hurting own goals (moronic laws) have been removed. Next should be not to close shops during players. This costs billions for the country each year. Tougher attempts to combat corruption albeit KSA is ranking rather well even on a worldwide scale on this front. Hopefully MbS can steamroll the royal family (which I imagine is his plane) and create a "Bin Salman" dynasty and rail it in (cost-wise too) much like what occurred in UAE and Jordan before. Of course every power in the world will try to prevent this.
What is a good sign is that KSA is winning the oil war (long-term) and that 30 dollars per barrel is budgeted with (can be) and that the increasing market share will control the possible damage before the oil price jumps up again. Each month KSA is less and less dependent on that resource anyway, with the non-oil sector growing despite a chaotic neighborhood and signs of economic recession globally before the coronavirus emerged.
What was encouraging and a clear sign of the economy being overall good, was the quick reaction by the government to the coronavirus crisis. Economic initiatives and support for the private sector much like in wealthy European states and the US.
And let us hope that such crisis will be used to create greater regional Arab integration and pave the way for future regional integration and the emergence of large and powerful Arab federal states across the Arab world. The only way forward.
I see this is a great opportunity much like what happened in 2014. Without that none of the changes would have occurred for the better.
Saudi Arabia calls for G20 summit to help inoculate global economy
https://www.arabnews.com/node/1644591/business-economy
SR12 billion program launched to support Saudi economy
https://www.arabnews.com/node/1644976/saudi-arabia
ArabianEmpires&Caliphates
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Saudi Arabia discovers massive natural gas reserves in Red Sea
RIYADH, March 7 (Xinhua) -- Saudi Arabia on Thursday announced the discovery of massive natural gas reserves in the Red Sea, the Saudi Press Agency reported.
Saudi Energy Minister Khalid Al-Falih said Saudi Aramco, officially known as the Saudi Arabian Oil Company, will intensify exploration work during the next two years after completion of the feasibility study.
"Aramco's acquisitions worldwide are going on and the national company has excellent chances in Russia, India, Pakistan and Indonesia, in addition to possible LNG (liquefied natural gas) projects in the United States," Al-Falih said.
He made the remarks during an inspection tour of the projects in King Salman International Complex for Maritime Industries and Services in Ras Al Khair Industrial City.
http://www.xinhuanet.com/english/2019-03/08/c_137876767.htm
RIYADH, March 7 (Xinhua) -- Saudi Arabia on Thursday announced the discovery of massive natural gas reserves in the Red Sea, the Saudi Press Agency reported.
Saudi Energy Minister Khalid Al-Falih said Saudi Aramco, officially known as the Saudi Arabian Oil Company, will intensify exploration work during the next two years after completion of the feasibility study.
"Aramco's acquisitions worldwide are going on and the national company has excellent chances in Russia, India, Pakistan and Indonesia, in addition to possible LNG (liquefied natural gas) projects in the United States," Al-Falih said.
He made the remarks during an inspection tour of the projects in King Salman International Complex for Maritime Industries and Services in Ras Al Khair Industrial City.
http://www.xinhuanet.com/english/2019-03/08/c_137876767.htm
ArabianEmpires&Caliphates
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The history of Saudi Arabian gold
May 5, 2017
Saudi Gazette report
Mahd Al Dahab
GOLD has been used for coinage, jewelry and adornments throughout recorded history.
Goldsmithery is one of the oldest trades that showcased man’s artistic creativity. It can be traced back to the time of the pharaohs of Egypt.
Requiring great skill and patience, today the Kingdom has goldsmithery institutes that teach the intricate technical and creative skills of the art, Al-Riyadh daily reports.
Gold is used in making jewelry and other ornaments. It is also commonly used in dentistry and electronics. One of the reasons gold is used in dentistry, especially as gold teeth, is because of its durability.
As a metal, gold is soft but durable, particularly if combined with another non-toxic metal. Gold teeth are usually strong and last long.
The use of gold in electronics is due to its excellent electrical conductivity and reliability. It is used in conductors, switches, connecting wires and many other electronic components.
First gold mine
Gold was first mined in Arabia approximately 3000 BC. A second period of activity was during the Islamic Abbasid period between 750 and 1258 AD.
Extraction of gold started in the Kingdom during the era of King Abdulaziz, particularly between 1939 and 1954, at Mahd Al-Dhahab after the deposit was rediscovered in 1932.
The city, about 380 kilometers northeast of in Madinah province in the western region of the country, is situated at 1060 meters above sea level. Mining is carried out by underground methods with a total tunnel development in excess of 60km and a metallurgical plant.
Translated as the Cradle of Gold, Mahd Al-Dhahab was the first gold mine in the modern Saudi Arabia. In 2007, Mahd Al-Dhahab mined and processed approximately 183,425 tons of ore at a grade of 11.1 grams per ton of gold from underground operations, resulting in gold production of approximately 58,256 ounces.
In addition, the mine also processes reclaimed tailings and produces copper and zinc concentrates for third party toll smelting.
The Saudi government established the Saudi Arabian Mining Company in 1997 as a joint stock company with a capital of SR4 billion to operate five mines across the country. The company has expanded its business operations to include the development of phosphate, aluminum and other precious minerals.
Karat is the unit used to measure how pure a piece of gold is and it is abbreviated as “kt or K”. Usually, 24K gold is very expensive as it contains pure gold while 22K gold implies that 22 parts of the jewelry is gold and the remaining two parts are some other metal like silver, nickel, zinc and other alloys. The same thing applies to 18K gold, which consists of 18 parts of pure gold.
It is common for Saudi men to give their future wives dowry in gold. When a man proposes to a woman and when her parents and she accept, the man buys gold jewelry and presents it to his fiancée.
Gold remains the preferred gift for Saudi women even after marriage, especially during birthday parties, pregnancy parties and wedding anniversaries.
The Technical and Vocational Training Corporation (TVTC) offers diplomas in goldsmithery because the labor market is in dire need for goldsmiths, both men and women. The TVTC diploma program focuses on women because they are more likely than men to consider a life-long career in the field.
http://saudigazette.com.sa/saudi-arabia/history-saudi-gold/
Gold mines and gold used for jewelry occurred in Arabia almost simultaneously to events in neighboring Egypt.
https://en.wikipedia.org/wiki/Gold#Cultural_history
The largest ancient gold mine in the Middle East is also located in Saudi Arabia (Hijaz). It is called Madh Al-Dhabab and it is known as the "cradle of gold".
https://en.wikipedia.org/wiki/Mahd_adh_Dhahab
Gold jewelry is also used as part of traditional clothing (attire) for women in every single historical region of KSA and Arabia. Look no further than my current avatar either. Saudi Arabian/Arabian women also used to wear the most gold as part of their traditional attire in the entire Arab world and probably/most likely the Middle East as well.
May 5, 2017
Saudi Gazette report
Mahd Al Dahab
GOLD has been used for coinage, jewelry and adornments throughout recorded history.
Goldsmithery is one of the oldest trades that showcased man’s artistic creativity. It can be traced back to the time of the pharaohs of Egypt.
Requiring great skill and patience, today the Kingdom has goldsmithery institutes that teach the intricate technical and creative skills of the art, Al-Riyadh daily reports.
Gold is used in making jewelry and other ornaments. It is also commonly used in dentistry and electronics. One of the reasons gold is used in dentistry, especially as gold teeth, is because of its durability.
As a metal, gold is soft but durable, particularly if combined with another non-toxic metal. Gold teeth are usually strong and last long.
The use of gold in electronics is due to its excellent electrical conductivity and reliability. It is used in conductors, switches, connecting wires and many other electronic components.
First gold mine
Gold was first mined in Arabia approximately 3000 BC. A second period of activity was during the Islamic Abbasid period between 750 and 1258 AD.
Extraction of gold started in the Kingdom during the era of King Abdulaziz, particularly between 1939 and 1954, at Mahd Al-Dhahab after the deposit was rediscovered in 1932.
The city, about 380 kilometers northeast of in Madinah province in the western region of the country, is situated at 1060 meters above sea level. Mining is carried out by underground methods with a total tunnel development in excess of 60km and a metallurgical plant.
Translated as the Cradle of Gold, Mahd Al-Dhahab was the first gold mine in the modern Saudi Arabia. In 2007, Mahd Al-Dhahab mined and processed approximately 183,425 tons of ore at a grade of 11.1 grams per ton of gold from underground operations, resulting in gold production of approximately 58,256 ounces.
In addition, the mine also processes reclaimed tailings and produces copper and zinc concentrates for third party toll smelting.
The Saudi government established the Saudi Arabian Mining Company in 1997 as a joint stock company with a capital of SR4 billion to operate five mines across the country. The company has expanded its business operations to include the development of phosphate, aluminum and other precious minerals.
Karat is the unit used to measure how pure a piece of gold is and it is abbreviated as “kt or K”. Usually, 24K gold is very expensive as it contains pure gold while 22K gold implies that 22 parts of the jewelry is gold and the remaining two parts are some other metal like silver, nickel, zinc and other alloys. The same thing applies to 18K gold, which consists of 18 parts of pure gold.
It is common for Saudi men to give their future wives dowry in gold. When a man proposes to a woman and when her parents and she accept, the man buys gold jewelry and presents it to his fiancée.
Gold remains the preferred gift for Saudi women even after marriage, especially during birthday parties, pregnancy parties and wedding anniversaries.
The Technical and Vocational Training Corporation (TVTC) offers diplomas in goldsmithery because the labor market is in dire need for goldsmiths, both men and women. The TVTC diploma program focuses on women because they are more likely than men to consider a life-long career in the field.
http://saudigazette.com.sa/saudi-arabia/history-saudi-gold/
Gold mines and gold used for jewelry occurred in Arabia almost simultaneously to events in neighboring Egypt.
The oldest known map of a gold mine was drawn in the 19th Dynasty of Ancient Egypt (1320–1200 BCE), whereas the first written reference to gold was recorded in the 12th Dynasty around 1900 BCE.[86] Egyptian hieroglyphs from as early as 2600 BC describe gold, which King Tushratta of the Mitanni claimed was "more plentiful than dirt" in Egypt.[87] Egypt and especially Nubiahad the resources to make them major gold-producing areas for much of history. One of the earliest known maps, known as the Turin Papyrus Map, shows the plan of a gold mine in Nubia together with indications of the local geology. The primitive working methods are described by both Strabo and Diodorus Siculus, and included fire-setting. Large mines were also present across the Red Sea in what is now Saudi Arabia.
https://en.wikipedia.org/wiki/Gold#Cultural_history
The largest ancient gold mine in the Middle East is also located in Saudi Arabia (Hijaz). It is called Madh Al-Dhabab and it is known as the "cradle of gold".
There is a possibility that the Cradle of Gold is mentioned in the Biblical story of the Garden of Eden in The Book of Genesis. - "And a river went out of Eden to water the garden; and from thence it was parted, and became into four heads. The name of the first is Pishon: that is it which compasseth the whole land of Havilah, where there is gold; And the gold of that land is good: there is bdellium and the onyx stone." Research by archaeologists Juris Zarins of Missouri State University and Farouk El-Baz of Boston University indicates that the Pishon River may be the now dried up river bed that once flowed 600 miles north east from the Mahd adh-Dhahab area of the Hejaz c. 3000 BC.[1]
The site has also been identified with "King Solomon's Gold Mine."[2] Geologists have found a vast abandoned gold mine. Among their finds are huge quantities of waste rock, an estimated million tons, left by the ancient miners, still containing traces of gold. Thousands of stone hammers and grindstones used to extract the gold from the ore litter the mine slopes. Robert W. Luce said: "Our investigations have now confirmed that the old mine could have been as rich as described in biblical accounts."
The site has also been identified with "King Solomon's Gold Mine."[2] Geologists have found a vast abandoned gold mine. Among their finds are huge quantities of waste rock, an estimated million tons, left by the ancient miners, still containing traces of gold. Thousands of stone hammers and grindstones used to extract the gold from the ore litter the mine slopes. Robert W. Luce said: "Our investigations have now confirmed that the old mine could have been as rich as described in biblical accounts."
https://en.wikipedia.org/wiki/Mahd_adh_Dhahab
Gold jewelry is also used as part of traditional clothing (attire) for women in every single historical region of KSA and Arabia. Look no further than my current avatar either. Saudi Arabian/Arabian women also used to wear the most gold as part of their traditional attire in the entire Arab world and probably/most likely the Middle East as well.
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Saudi Arabia identifies 54 mineral-mining sites
HEBSHI ALSHAMMARI
April 25, 2020
The sites — which contain a variety of ore, including gold, copper, silver, zinc, lead, iron, quartz and tin — are in the regions of Riyadh, Makkah, Madinah, Asir, Hail and Najran.
The identification of the mining sites comes as the ministry aims to offer an attractive environment for local and international businesses to invest in the sector, and provide the data needed to attract the interest of the private sector. The Saudi Geological Survey plans to carry out a thorough study of the mining reserves, the results of which will be used to promote investment opportunities.
Abdulrahman Al-Rashed, a member of the Shoura Council’s finance committee, said the Kingdom is rich in natural resources, especially minerals, and the decisions will open up the mining sector to investors. Other mineral sources in the country have not yet been opened up for investment, he noted, and added that mining companies around the world recognize the importance of these opportunities.
He also commended the transparency of the decisions, which delineate clearly the responsibilities of the authorities and local or foreign investors. The Ministry of Industry and Mineral Resources drafted the laws regulating the mining industry after studying international experiences in the sector, said Al-Rashed, a former chairman the Council of Saudi Chambers. They are in line with global mining laws and offer investors many concessions, he noted. In addition, he said it is highly likely the authorities will offer incentives to attract investors, just as they were offered to petrochemicals and gas investors in the 1970s.
He added that he expects international businesses to register an interest in investing in the sector given the quality of the Kingdom’s mineral reserves.
Economic adviser Abdullah Al-Barrak said the infrastructure needed to attract investment in the mining sector has been improved in recent years and the prices of precious minerals have been rising of late, making investment more attractive than ever.
“This is the right time to open up the mining sector for investment,” he said. “In fact, the government started thinking seriously about this sector about eight years ago but decided to go ahead now because the opportunities are more favorable for local and foreign investors, besides which the mining infrastructure is robust and ready for vital investment.”
Fadhel Saad Albuainain, an economic analyst, said Saudi Vision 2030 targets the development of a number of vital sectors, including mining, to diversify the Kingdom’s economy, create new industries and increase GDP. The Saudi mining sector is potentially huge but requires massive investment and input from experts with considerable experience in the field.
“Privatization is instrumental to the mining sector,” he said. “Still, special attention should be given to the nature of contracts and the government’s return on these investments. The future production variables and profit maximization should be taken into consideration so as to allow the government to have a share of the future returns.”
The privatization of the mining sites should be carried out based on a fair assessment of the reserves that meets the needs and interests of both the investor and the government, Albuainain said. However, a degree of hedging in allocation contracts is important to allow for variations in capacity and prices, he added.
https://www.arabnews.com/node/1664696/saudi-arabia
HEBSHI ALSHAMMARI
April 25, 2020
- The decisions are part of the leadership’s goal to develop the mining sector
The sites — which contain a variety of ore, including gold, copper, silver, zinc, lead, iron, quartz and tin — are in the regions of Riyadh, Makkah, Madinah, Asir, Hail and Najran.
The identification of the mining sites comes as the ministry aims to offer an attractive environment for local and international businesses to invest in the sector, and provide the data needed to attract the interest of the private sector. The Saudi Geological Survey plans to carry out a thorough study of the mining reserves, the results of which will be used to promote investment opportunities.
Abdulrahman Al-Rashed, a member of the Shoura Council’s finance committee, said the Kingdom is rich in natural resources, especially minerals, and the decisions will open up the mining sector to investors. Other mineral sources in the country have not yet been opened up for investment, he noted, and added that mining companies around the world recognize the importance of these opportunities.
He also commended the transparency of the decisions, which delineate clearly the responsibilities of the authorities and local or foreign investors. The Ministry of Industry and Mineral Resources drafted the laws regulating the mining industry after studying international experiences in the sector, said Al-Rashed, a former chairman the Council of Saudi Chambers. They are in line with global mining laws and offer investors many concessions, he noted. In addition, he said it is highly likely the authorities will offer incentives to attract investors, just as they were offered to petrochemicals and gas investors in the 1970s.
He added that he expects international businesses to register an interest in investing in the sector given the quality of the Kingdom’s mineral reserves.
Economic adviser Abdullah Al-Barrak said the infrastructure needed to attract investment in the mining sector has been improved in recent years and the prices of precious minerals have been rising of late, making investment more attractive than ever.
“This is the right time to open up the mining sector for investment,” he said. “In fact, the government started thinking seriously about this sector about eight years ago but decided to go ahead now because the opportunities are more favorable for local and foreign investors, besides which the mining infrastructure is robust and ready for vital investment.”
Fadhel Saad Albuainain, an economic analyst, said Saudi Vision 2030 targets the development of a number of vital sectors, including mining, to diversify the Kingdom’s economy, create new industries and increase GDP. The Saudi mining sector is potentially huge but requires massive investment and input from experts with considerable experience in the field.
“Privatization is instrumental to the mining sector,” he said. “Still, special attention should be given to the nature of contracts and the government’s return on these investments. The future production variables and profit maximization should be taken into consideration so as to allow the government to have a share of the future returns.”
The privatization of the mining sites should be carried out based on a fair assessment of the reserves that meets the needs and interests of both the investor and the government, Albuainain said. However, a degree of hedging in allocation contracts is important to allow for variations in capacity and prices, he added.
https://www.arabnews.com/node/1664696/saudi-arabia
ArabianEmpires&Caliphates
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Minister: ‘Mind-blowing’ prospects for Saudi mining
FRANK KANE
January 25, 2020
Speaking on the sidelines of the World Economic Forum in Davos, Bandar Alkhorayef — who was appointed to the newly created post last summer — said many of the Kingdom’s mineral resources were “untapped,” and that a multibillion-riyal investment program was now underway to find and exploit new sources of natural wealth.
Saudi Arabia has launched a five-year geological survey of its natural resources, hoping to identify and quantify new wealth in the form of gold, phosphates and other valuable minerals.
Some experts believe that the Kingdom could be a source of precious earth metals valued in hi-tech production processes.
If these are found in significant quantities, it could help stimulate domestic high-tech manufacturing processes in Saudi Arabia.
“The government has linked mining with industry. We’ll export raw materials of course, but we’re more interested in the wider value chain,” Alkhorayef said.
A new mining law will soon be enacted, allowing for a revamped regulatory regime in the mining industry, and new investment in mining infrastructure that could reach tens of billions of riyals, he said, adding: “It shows you how serious we are about the mining industry.”
He joined the government after 26 years at the top of private sector business, with the Alkhorayef Group industrial conglomerate.
“The core of the Vision 2030 strategy is to diversify the economy, and industry and mining are key parts of that. My view as a minister is to be an enabler for the transformation of those sectors,” he said.
A key agency is the Saudi Industrial Development Fund, which aims to distribute funds to the private sector to encourage expansion.
Its available capital has been increased from SR65 billion ($17.3 billion) to $100 billion, and its mandate has changed to cover new industrial and technological sectors, Alkhorayef said.
“Both industry and mining are capital intensive and need long-term stability and visibility. Our aim is to be profitable in order to compensate investors for the risk they take,” he added.
DECODER
Saudi Arabia’s National Industrial Development and Logistics Program
The National Industrial Development and Logistics Program aims to transform the Saudi economy by encouraging investment in economic growth via the creation of special economic zones across the Kingdom.
“Investors always look at risk and return, and they make decisions based on that. Our vision is to open up opportunities for local and foreign investors.”
His ministry is also closely involved in the rollout of the National Industrial Development and Logistics Program, the big strategy to transform the Saudi economy launched a year ago by encouraging investment in economic growth via the creation of special economic zones across the Kingdom.
“It’s going great,” Alkhorayef said. Two zones have already been opened in Riyadh and Jeddah, and there are further projects under review.
He met with investors in the logistics sector while in Davos, and further investment is expected.
He said in Saudi Arabia’s case, the advantages presented to investors by the Kingdom’s natural resources, demographics and geographical location outweigh any geopolitical risk.
Alkhorayef added that it is relatively risk-free in terms of currency fluctuations because of the dollar peg and freedom of capital. “I worked in a global company, so I understand those kinds of risks,” he said.
https://www.arabnews.com/node/1617926/business-economy
FRANK KANE
January 25, 2020
- Bandar Alkhorayef, the Kingdom’s minister for industry, says multibillion riyal program underway
Speaking on the sidelines of the World Economic Forum in Davos, Bandar Alkhorayef — who was appointed to the newly created post last summer — said many of the Kingdom’s mineral resources were “untapped,” and that a multibillion-riyal investment program was now underway to find and exploit new sources of natural wealth.
Saudi Arabia has launched a five-year geological survey of its natural resources, hoping to identify and quantify new wealth in the form of gold, phosphates and other valuable minerals.
Some experts believe that the Kingdom could be a source of precious earth metals valued in hi-tech production processes.
If these are found in significant quantities, it could help stimulate domestic high-tech manufacturing processes in Saudi Arabia.
“The government has linked mining with industry. We’ll export raw materials of course, but we’re more interested in the wider value chain,” Alkhorayef said.
A new mining law will soon be enacted, allowing for a revamped regulatory regime in the mining industry, and new investment in mining infrastructure that could reach tens of billions of riyals, he said, adding: “It shows you how serious we are about the mining industry.”
He joined the government after 26 years at the top of private sector business, with the Alkhorayef Group industrial conglomerate.
“The core of the Vision 2030 strategy is to diversify the economy, and industry and mining are key parts of that. My view as a minister is to be an enabler for the transformation of those sectors,” he said.
A key agency is the Saudi Industrial Development Fund, which aims to distribute funds to the private sector to encourage expansion.
Its available capital has been increased from SR65 billion ($17.3 billion) to $100 billion, and its mandate has changed to cover new industrial and technological sectors, Alkhorayef said.
“Both industry and mining are capital intensive and need long-term stability and visibility. Our aim is to be profitable in order to compensate investors for the risk they take,” he added.
DECODER
Saudi Arabia’s National Industrial Development and Logistics Program
The National Industrial Development and Logistics Program aims to transform the Saudi economy by encouraging investment in economic growth via the creation of special economic zones across the Kingdom.
“Investors always look at risk and return, and they make decisions based on that. Our vision is to open up opportunities for local and foreign investors.”
His ministry is also closely involved in the rollout of the National Industrial Development and Logistics Program, the big strategy to transform the Saudi economy launched a year ago by encouraging investment in economic growth via the creation of special economic zones across the Kingdom.
“It’s going great,” Alkhorayef said. Two zones have already been opened in Riyadh and Jeddah, and there are further projects under review.
He met with investors in the logistics sector while in Davos, and further investment is expected.
He said in Saudi Arabia’s case, the advantages presented to investors by the Kingdom’s natural resources, demographics and geographical location outweigh any geopolitical risk.
Alkhorayef added that it is relatively risk-free in terms of currency fluctuations because of the dollar peg and freedom of capital. “I worked in a global company, so I understand those kinds of risks,” he said.
https://www.arabnews.com/node/1617926/business-economy
ArabianEmpires&Caliphates
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Saudi Arabia … establishing a joint-stock mining company
April 29, 2020
Last updated: Wednesday 6 Ramadan 1441 AH – April 29, 2020 KSA 09:22 – GMT 06:22
Posted on: Wednesday 6 Ramadan 1441 AH – April 29, 2020 KSA 06:45 – GMT 03:45
Source: Riyadh – SPA
The Saudi Cabinet agreed on Tuesday in principle to establish a joint stock company owned by the state for mining services and to provide electricity and water services to the beneficiaries according to the regular procedures without requiring any certificate, to be achieved before the provision of electricity services to comply with the requirements of thermal insulation until the application of the Saudi building code to All categories of buildings.
The Council also agreed to amend Cabinet decisions No. (490), dated 12/11 / 1437H, No. (720), dated on 12/28 / 1438H, and No. (257), dated 16/5 / 1440H, in the matter of discussing and signing draft memoranda of understanding between The Ministry of Energy, Industry and Mineral Resources in Saudi Arabia (previously) and each of: the Ministry of Petroleum and Mineral Resources in the Arab Republic of Egypt, the Ministry of Natural Resources and Environment in the Russian Federation, and the Ministry of Energy in the Republic of Bulgaria, as stated in the decision.
The statement did not provide details about the size, capital, or time frame for the company’s establishment. Mining is a key component of the kingdom’s plan to diversify its economy, and the government aims to double the sector’s contribution to the country’s economic output by more than three times by 2030.
The Saudi Arabian Mining Company (Maaden) is currently the only company in the country that produces gold and copper and expanded in the past few years to produce aluminum and phosphate. It is 65% owned by the Public Investment Fund, the Kingdom’s sovereign wealth fund.
https://www.saudi24.news/2020/04/saudi-arabia-establishing-a-joint-stock-mining-company-2.html
King Salman to open $22.7bn Saudi mining project
Saudi king will inaugurate the 440-square-kilometre Waad Al Shamaal project on Thursday, Al Arabiya TV reported that
https://www.thenational.ae/world/mena/king-salman-to-open-22-7bn-saudi-mining-project-1.793660
April 29, 2020
Last updated: Wednesday 6 Ramadan 1441 AH – April 29, 2020 KSA 09:22 – GMT 06:22
Posted on: Wednesday 6 Ramadan 1441 AH – April 29, 2020 KSA 06:45 – GMT 03:45
Source: Riyadh – SPA
The Saudi Cabinet agreed on Tuesday in principle to establish a joint stock company owned by the state for mining services and to provide electricity and water services to the beneficiaries according to the regular procedures without requiring any certificate, to be achieved before the provision of electricity services to comply with the requirements of thermal insulation until the application of the Saudi building code to All categories of buildings.
The Council also agreed to amend Cabinet decisions No. (490), dated 12/11 / 1437H, No. (720), dated on 12/28 / 1438H, and No. (257), dated 16/5 / 1440H, in the matter of discussing and signing draft memoranda of understanding between The Ministry of Energy, Industry and Mineral Resources in Saudi Arabia (previously) and each of: the Ministry of Petroleum and Mineral Resources in the Arab Republic of Egypt, the Ministry of Natural Resources and Environment in the Russian Federation, and the Ministry of Energy in the Republic of Bulgaria, as stated in the decision.
The statement did not provide details about the size, capital, or time frame for the company’s establishment. Mining is a key component of the kingdom’s plan to diversify its economy, and the government aims to double the sector’s contribution to the country’s economic output by more than three times by 2030.
The Saudi Arabian Mining Company (Maaden) is currently the only company in the country that produces gold and copper and expanded in the past few years to produce aluminum and phosphate. It is 65% owned by the Public Investment Fund, the Kingdom’s sovereign wealth fund.
https://www.saudi24.news/2020/04/saudi-arabia-establishing-a-joint-stock-mining-company-2.html
King Salman to open $22.7bn Saudi mining project
Saudi king will inaugurate the 440-square-kilometre Waad Al Shamaal project on Thursday, Al Arabiya TV reported that
https://www.thenational.ae/world/mena/king-salman-to-open-22-7bn-saudi-mining-project-1.793660
ArabianEmpires&Caliphates
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Mining clusters support extractive expansion in Saudi Arabia
As part of the Kingdom’s broader economic diversification strategy, billions of dollars in public and private investments have been allocated to develop the mining industry in recent years. The driving force behind the sector’s expansion is the Saudi Arabian Mining Company (Ma’aden), which is majority owned by the Public Investment Fund (PIF) – the country’s sovereign wealth fund – and listed on the Saudi Stock Exchange (Tadawul). The diversified business, which is active in the gold, phosphates, industrial minerals and copper concentrates segments, has emerged as one of the largest and fastest-growing companies of its type in the MENA region.
Under the National Industrial Development and Logistics Programme, the government has outlined a number of major targets for the expansion of Ma’aden and the mining sector as a whole. Two new industrial cities, a port and an expanded railway network have been built to facilitate these efforts. In addition, Ma’aden is seeking to boost capacity and production, with work under way on new phosphate and gold facilities. While public investment and government-related institutions have taken the lead in the sector, the authorities are seeking to create a more diversified mining environment in which private companies and foreign investors play a greater role.
Industry Giant
The rapid growth of Ma’aden has highlighted what can be achieved through a combination of proactive government measures, partnerships with international companies and increased private sector investment. This approach forms part of Saudi Vision 2030, the country’s bold economic diversification programme aimed at transitioning the country away from a dependence on oil. Ma’aden was founded by royal decree in 1997 and remained wholly state owned until July 2008 when it launched an initial public offering (IPO). Raising approximately SR9.3bn ($2.5bn), it was the biggest mining IPO in the MENA region to date. This set off a series of major investments, with the company commissioning eight new mines and 17 processing plants, all of which were operational by 2018. The total value of the company’s assets increased dramatically during this time, rising from SR29bn ($7.7bn) in 2009 to SR97.7bn ($26bn) in 2019, while the value of its sales rose SR622m ($165.8m) to SR17.7bn ($4.7bn). Meanwhile, the company’s gold sales grew from 45,000 oz in 2009 to 394,117 oz in 2019. As of December 2019 the company operated six gold, one bauxite and two phosphates mines, in addition to three mines producing low-grade bauxite, kaolin and magnesite.
The most recent extraction facility to come on-line was the Al Khabra phosphates mine, which opened in 2017. The mine is operated by Ma’aden’s Wa’ad Al Shamal Phosphate Company – an $8bn joint venture (JV) between Ma’aden, Mosaic and SABIC – and is located in the Northern Borders region of the Kingdom, forming a key part of the Wa’ad Al Shamal Industrial City.
Mining Cities
The construction of specialised cities to serve as nodes clustering industrial facilities, transport infrastructure and human resources constitutes a central part of the Kingdom’s industrial development strategy. Completed in November 2018 Wa’ad Al Shamal Industrial City covers over 440 sq km and cost around SR22.5bn ($6bn). The project, which includes residential units, public amenities and new roads, was designed to provide a centre for the expansion of the Kingdom’s phosphate mining activities and generate around 30,000 jobs for Saudi citizens.
The city is connected by a rail freight line to Ma’den’s other mining city, Ras Al Khair Industrial City, which is located on the eastern coast 60 km north of Jubail. Initiated in 2016, the city is currently under development and managed by the Royal Commission for Jubail and Yanbu. The completed urban development will span 179 sq km and include an aluminium production complex, a water desalination and power plant, and a major port. In addition, the city will include a new railway network linking it with bauxite and phosphate mines. As of December 2019 the project had attracted investments of SR100bn ($26.7bn).
Challenges & Opportunities
While Ma’aden has experienced impressive growth in output and sales over the last decade, it nonetheless faces challenges, particularly in terms of the fluctuation of global commodity prices. Indeed, while overall sales increased by 25% to SR17.7bn ($4.7bn) in 2019, the international price of phosphate and aluminium fell by 18% and 15%, respectively. These sharp declines, coupled with significant capital expenditure in new operations, resulted in the company recording a net loss of SR1.5bn ($399.9m), compared to a net profit of SR2.3bn ($666.5m) the previous year.
Despite these challenges Ma’aden continues to expand its capacity and reach. In April 2019 the company announced an agreement to acquire an 85% stake in the Mauritius-based fertiliser distributor Meridian Group, marking its first overseas acquisition. Additionally, in June 2019 it was announced that the US-based aluminium producer Alcoa would divest its 25.1% share in Ma’aden Rolling Company (MRC), bringing the company under complete ownership of Ma’aden. MRC owns and operates a beverage can rolling facility in Ras Al Khair Industrial City, in addition to auto rolling assets. As part of the deal, MRC’s $796m in outstanding debt to the PIF was transferred to Ma’aden. Furthermore, Ma’aden aims to double its production capacity of gold to 1m oz per year by 2025 through its wholly owned subsidiary Ma’aden Gold and Base Metals Company. The firm, which already has six gold mines in operation, plans to commence production by 2023 at two new extraction sites at Mansourah-Massarah and Ar Rjum.
New Investment
While majority state-owned Ma’adan is likely set to dominate the sector for the foreseeable future, private companies are playing an increasingly active role, particularly in the upstream segment. For example, Modern Chemicals and Services Company – a JV between the domestic firm Modern Industrial Investment Holding Group and the French multinational EPC Groupe – has supplied civil explosives to the mining and construction industries since 2009. The company is currently developing a 350,000-tonne-per-annum, low-density ammonium nitrate project to produce components for mining explosives. Furthermore, Modern Mining Holding Company, a subsidiary of Modern Industrial Investment Holding Group, formed a JV with the Amsterdam-based resource trading firm Trafigura in October 2018 to develop an integrated copper, lead and zinc smelting and refining facility. Both these projects will form part of Ras Al Khair Industrial City.
The government is aiming to release more concessions for mining and quarrying to private firms in order to unlock the Kingdom’s estimated SR5trn ($1.3trn) in mineral deposits. One firm looking to expand operations is Saudi company Astra Mining. Since 2017 Astra Mining has produced lime and dolomite products at a plant in Al Kharj. The company has applied for licences to operate four quarries to extract lime, dolomite, magnesite and quartz, and plans to launch licence applications for feldspar, kaolin and pozzolan. “We currently buy limestone and dolomite from the market, but if we had our own mines our business would be transformed,” Ali Mousa Al Jabrah, CEO of Astra Mining, told OBG.
As part of this effort, the Saudi Geological Survey has been tasked with conducting detailed surveys and creating an accessible database to help in exploration activity. In addition, a new mining law is currently under development and is set to be enacted around the middle of 2020. The new legislation is expected to provide foreign investors with greater access to the market. “We believe the mining sector in Saudi Arabia can be as significant as it is in Chile, Australia or Canada,” Abdulkadir Farah, vice-president for business development at Modern Industrial Investment Holding Group, told OBG. “The new law presents exciting potential opportunities in the upstream segment.”
https://oxfordbusinessgroup.com/ana...-while-new-opportunities-emerge-private-firms
As part of the Kingdom’s broader economic diversification strategy, billions of dollars in public and private investments have been allocated to develop the mining industry in recent years. The driving force behind the sector’s expansion is the Saudi Arabian Mining Company (Ma’aden), which is majority owned by the Public Investment Fund (PIF) – the country’s sovereign wealth fund – and listed on the Saudi Stock Exchange (Tadawul). The diversified business, which is active in the gold, phosphates, industrial minerals and copper concentrates segments, has emerged as one of the largest and fastest-growing companies of its type in the MENA region.
Under the National Industrial Development and Logistics Programme, the government has outlined a number of major targets for the expansion of Ma’aden and the mining sector as a whole. Two new industrial cities, a port and an expanded railway network have been built to facilitate these efforts. In addition, Ma’aden is seeking to boost capacity and production, with work under way on new phosphate and gold facilities. While public investment and government-related institutions have taken the lead in the sector, the authorities are seeking to create a more diversified mining environment in which private companies and foreign investors play a greater role.
Industry Giant
The rapid growth of Ma’aden has highlighted what can be achieved through a combination of proactive government measures, partnerships with international companies and increased private sector investment. This approach forms part of Saudi Vision 2030, the country’s bold economic diversification programme aimed at transitioning the country away from a dependence on oil. Ma’aden was founded by royal decree in 1997 and remained wholly state owned until July 2008 when it launched an initial public offering (IPO). Raising approximately SR9.3bn ($2.5bn), it was the biggest mining IPO in the MENA region to date. This set off a series of major investments, with the company commissioning eight new mines and 17 processing plants, all of which were operational by 2018. The total value of the company’s assets increased dramatically during this time, rising from SR29bn ($7.7bn) in 2009 to SR97.7bn ($26bn) in 2019, while the value of its sales rose SR622m ($165.8m) to SR17.7bn ($4.7bn). Meanwhile, the company’s gold sales grew from 45,000 oz in 2009 to 394,117 oz in 2019. As of December 2019 the company operated six gold, one bauxite and two phosphates mines, in addition to three mines producing low-grade bauxite, kaolin and magnesite.
The most recent extraction facility to come on-line was the Al Khabra phosphates mine, which opened in 2017. The mine is operated by Ma’aden’s Wa’ad Al Shamal Phosphate Company – an $8bn joint venture (JV) between Ma’aden, Mosaic and SABIC – and is located in the Northern Borders region of the Kingdom, forming a key part of the Wa’ad Al Shamal Industrial City.
Mining Cities
The construction of specialised cities to serve as nodes clustering industrial facilities, transport infrastructure and human resources constitutes a central part of the Kingdom’s industrial development strategy. Completed in November 2018 Wa’ad Al Shamal Industrial City covers over 440 sq km and cost around SR22.5bn ($6bn). The project, which includes residential units, public amenities and new roads, was designed to provide a centre for the expansion of the Kingdom’s phosphate mining activities and generate around 30,000 jobs for Saudi citizens.
The city is connected by a rail freight line to Ma’den’s other mining city, Ras Al Khair Industrial City, which is located on the eastern coast 60 km north of Jubail. Initiated in 2016, the city is currently under development and managed by the Royal Commission for Jubail and Yanbu. The completed urban development will span 179 sq km and include an aluminium production complex, a water desalination and power plant, and a major port. In addition, the city will include a new railway network linking it with bauxite and phosphate mines. As of December 2019 the project had attracted investments of SR100bn ($26.7bn).
Challenges & Opportunities
While Ma’aden has experienced impressive growth in output and sales over the last decade, it nonetheless faces challenges, particularly in terms of the fluctuation of global commodity prices. Indeed, while overall sales increased by 25% to SR17.7bn ($4.7bn) in 2019, the international price of phosphate and aluminium fell by 18% and 15%, respectively. These sharp declines, coupled with significant capital expenditure in new operations, resulted in the company recording a net loss of SR1.5bn ($399.9m), compared to a net profit of SR2.3bn ($666.5m) the previous year.
Despite these challenges Ma’aden continues to expand its capacity and reach. In April 2019 the company announced an agreement to acquire an 85% stake in the Mauritius-based fertiliser distributor Meridian Group, marking its first overseas acquisition. Additionally, in June 2019 it was announced that the US-based aluminium producer Alcoa would divest its 25.1% share in Ma’aden Rolling Company (MRC), bringing the company under complete ownership of Ma’aden. MRC owns and operates a beverage can rolling facility in Ras Al Khair Industrial City, in addition to auto rolling assets. As part of the deal, MRC’s $796m in outstanding debt to the PIF was transferred to Ma’aden. Furthermore, Ma’aden aims to double its production capacity of gold to 1m oz per year by 2025 through its wholly owned subsidiary Ma’aden Gold and Base Metals Company. The firm, which already has six gold mines in operation, plans to commence production by 2023 at two new extraction sites at Mansourah-Massarah and Ar Rjum.
New Investment
While majority state-owned Ma’adan is likely set to dominate the sector for the foreseeable future, private companies are playing an increasingly active role, particularly in the upstream segment. For example, Modern Chemicals and Services Company – a JV between the domestic firm Modern Industrial Investment Holding Group and the French multinational EPC Groupe – has supplied civil explosives to the mining and construction industries since 2009. The company is currently developing a 350,000-tonne-per-annum, low-density ammonium nitrate project to produce components for mining explosives. Furthermore, Modern Mining Holding Company, a subsidiary of Modern Industrial Investment Holding Group, formed a JV with the Amsterdam-based resource trading firm Trafigura in October 2018 to develop an integrated copper, lead and zinc smelting and refining facility. Both these projects will form part of Ras Al Khair Industrial City.
The government is aiming to release more concessions for mining and quarrying to private firms in order to unlock the Kingdom’s estimated SR5trn ($1.3trn) in mineral deposits. One firm looking to expand operations is Saudi company Astra Mining. Since 2017 Astra Mining has produced lime and dolomite products at a plant in Al Kharj. The company has applied for licences to operate four quarries to extract lime, dolomite, magnesite and quartz, and plans to launch licence applications for feldspar, kaolin and pozzolan. “We currently buy limestone and dolomite from the market, but if we had our own mines our business would be transformed,” Ali Mousa Al Jabrah, CEO of Astra Mining, told OBG.
As part of this effort, the Saudi Geological Survey has been tasked with conducting detailed surveys and creating an accessible database to help in exploration activity. In addition, a new mining law is currently under development and is set to be enacted around the middle of 2020. The new legislation is expected to provide foreign investors with greater access to the market. “We believe the mining sector in Saudi Arabia can be as significant as it is in Chile, Australia or Canada,” Abdulkadir Farah, vice-president for business development at Modern Industrial Investment Holding Group, told OBG. “The new law presents exciting potential opportunities in the upstream segment.”
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Saudi mineral wealth could top $1.3 trillion amid Kingdom’s aggressive exploration plan
Updated 31 January 2022
WAEL MAHDI
January 10, 2022
RIYADH: Saudi Arabia expects its mineral wealth to exceed earlier estimates of $1.3 trillion as the Kingdom plans to triple spending on the exploration of metals over the next three years, said the head of the organization responsible for assessing its geological potential.
Abdullah bin Muftar Al-Shamrani, CEO of the Saudi Geological Survey, said that this prior estimate was made a few years ago when prices of minerals were lower.
“Now we have seen that the price is increasing, it is expected that the forecast of...prices is really going to be increased because of that demand of those material,” he said in an exclusive interview with Arab News.
The aim is now to almost triple exploration spending per square meter to SR220 ($58.7) within the next two to three years.
The increased expenditure will “expedite the mining sector targets” and would help in discovering more locations. Al-Shamrani said that the Kingdom is going “aggressive” on exploration.
He added that the number of mining sites in the Kingdom could exceed 5,500.
Supporting a greener future
The Kingdom wants to be part of the global supply chain for raw materials that will go into many viable products to support industries such as renewable energy, he said.
It's now determined to develop all these resources with the help of international investors who will be in need for more data. The organization known as SGS has developed a huge database for this purpose.
When asked about the key minerals that Saudi Arabia possessed, the CEO said: “We are talking about cobalt, lithium, titanium, rare earth — all of those will make the future more sustainable if they are used efficiently. The future is talking all about the renewable energy and the good thing [..] is that Saudi Arabia has those minerals.” He said that they are crucial in the global transition to cleaner sources of power.
Other strategic minerals include copper, zinc and Saudi silica, the latter being one of the most highly concentrated around the world. However, it is not only renewable energy-related minerals that are in abundance in the Kingdom.
“When we talk about minerals in Saudi Arabia, we’re talking about around 48 minerals. Some of them are very critical for global needs,” he said. Some minerals, such as phosphate — which is used for fertilizers — are important to fulfill goals such as food security.
He confirmed the Kingdom’s “very good potential” for specific traditional minerals including gold and silver.
Sudden Change
When asked about why the mining sector seemed to take a back seat in previous years, Al-Shamrani replied that exploration spending in the past decade was not enough to focus on the investment potential in the sector.
“But when Vision 2030 indicated that the mining sector should be the third pillar of the country’s industry, a good amount — around SR3.8 billion — was injected into the mining sector.” The aim of this spending, he said, was to invest in the sector to discover opportunities all around the country.
The CEO hopes three points will be agreed on by attendees at next week’s Future Minerals Forum. The first of these is to work out the demand for minerals in the upcoming 10 to 30 years.
The second is to see how these needs will be satisfied. The third is to make sure people are more educated about sustainability and efficiency.
Saudi Arabia is trying to attract a mix of local and international investors in mining opportunities. Al-Shamrani assured international investors that the sector will follow internationally recognized ESG guidelines.
He said certain conditions are being put on the mining sector as the Kingdom pursues its goal of reducing its carbon footprint and becoming carbon neutral by 2060.
“We understand the challenges the mining sector is facing,” Al-Shamrani said.
Riyadh will host this week its first future minerals forum that will attract top industry players and ministers from many countries.
The CEO had three things in mind that he hopes will be agreed upon by attendees in the Future Minerals Forum.
The first of these is to discover minerals’ needs in the upcoming 10 to 30 years. Secondly, it should be pointed out how these needs would be satisfied. The final thing is making sure that people are more educated about sustainability and efficiency.
FASTFACT
Saudi Arabia is trying to attract a mix of local and international investors in mining opportunities. Al-Shamrani assured international investors that the sector will follow ESG guidelines.Serving society
“We are full of minerals that will serve humanity around the globe, and within Saudi Arabia,” Al-Shamrani said.
An advantage of the mining industry is that it’s not concentrated in the cities, and with more projects in remote areas, it can help to limit rural-urban migration across the Kingdom.
He cited examples such as Waad Al Shamal, Mahd Al Dahab (Cradle of Gold) and Jabal Sayid; all were virtually empty before but were later developed.
Saudi mineral wealth could top $1.3 trillion amid Kingdom’s aggressive exploration plan
RIYADH: Saudi Arabia expects its mineral wealth to exceed earlier estimates of $1.3 trillion as the Kingdom plans to triple spending on the exploration of metals over the next three years, said the head of the organization responsible for assessing its geological potential. Abdullah bin Muftar...
www.arabnews.com
Bonus video:
The Arabian-Nubian Shield is the world's next mining destination
Arabian-Nubian Shield - Wikipedia
This news will burn the usual haters from within.
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