Saudi Arabia Proclaims Metal & Mineral Sector Development A Priority

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Researched by Industrialinfo.com (Industrial Information Resources, Inc.; Houston Texas). The Kingdom of Saudi Arabia, a nation best known for its vast oil reserves, is studying significant metal and mineral reserves for future development. Geological surveys and mineral exploration over the years have revealed that, in addition to vast oil reserves, the Kingdom of Saudi Arabia possesses large deposits of various metals and minerals, including bauxite, copper, gold, iron, lead, silver, tin, and a number of non-metallic minerals. The mining industry of the kingdom has remained a well kept secret from the rest of world.

However in 1997, in order to coordinate projects and promote efficiency in the mining industry, the Saudi Arabian Mining Company (Maadin) was created, with an initial capital investment of more than $1 billion. Maadin is responsible for regulating mineral exploration and progress. Although Saudi Arabia's economy will always remain heavily dependent on oil, (oil reserves making up around 90-95% of its total export earnings and 70%-80% of state revenues), the kingdom is attempting to diversify its economy.

Recently, the government proclaimed the metals & minerals sector as a development priority and set ambitious growth targets as shown by the proposed changes in the mining laws. Although the new mining code is still awaiting Royal assent and other legislative changes, the winds of change are already blowing. For example, in January Tertiary Minerals PLC (UK) was awarded a five-year exclusive exploration license for Ghurayyah tantalum/rare-metal deposit in Saudi Arabia. The estimated inferred resources so far in Ghurayyah are more than the known reserve/resources at the Greenbushes and Wodgina mines in Western Australia combined. These mines, which are owned by Sons of Gwalia Limited, currently account for approximately 30 percent of the world's tantalum minerals output.

Research by Industrialinfo.com shows that Saudi Arabia has over $1.8 billion worth of planned or under construction projects in the metal and minerals industry. In addition to Saudi Arabia, the international department of Industrialinfo.com tracks the metals and minerals industry worldwide, and reports monthly on 35 projects with a minimum total installed value (TIV) of $25 million.