Al Masane Al Kobra Mining Company (AMAK) has signed an agreement with the Saudi Arabian Mining Company (Maaden) to exchange several exploration licenses.

The agreement is part of a strategic partnership aimed at maximising value creation in the mining sector, AMAK said in a statement to the Saudi stock exchange.

Under the agreement, the two mining companies will swap exploration licenses to align with their operational efficiencies and investment objectives. 

The exchange of licences is expected to support resource management efficiency and optimise the utilisation of the Kingdom’s mineral wealth. It also opens new pathways for expansion.

The transfer of ownership of the exploration licenses is subject to the regulatory lock-up period and the completion of all final approvals from the Ministry of Industry and Mineral Resources and other relevant authorities, the statement said.

The agreement will remain in effect until all regulatory procedures related to the transfer of exploration licenses are completed.

The licenses to be transferred to AMAK are related to precious and base metals, the statement added.

No details were provided on the licenses that will be transferred to Maaden, which is also listed on the Saudi stock exchange.

This month, AMAK had announced the discovery of potentially economic copper, zinc, gold, and silver resources within one of its exploration licenses in the Najran region.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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