PROJECTS: Saudi aims for $2.4bln mining revenue

100 mining sites to be offered to investors

Image used for illustrative purpose. Workers using leveling machinery in quarry

Image used for illustrative purpose. Workers using leveling machinery in quarry

Getty Images/Sam Edwards

Saudi Arabia aims to achieve revenues of nearly 8.9 billion Saudi riyals ($2.4 billion) from its mining industry under its Vision 2030 economic diversification scheme, according to the Industry and Mineral Resources Ministry.

The largest Arab economy is pushing ahead with restructuring the mining sector to attract private investors as part of diversification plans that will see the sector become the third largest component of GDP after crude oil and petrochemicals, the Ministry said in a report published by the Saudi Aliqtisadia newspaper.

The Ministry, which is drafting a new mining investment law, will offer at least 100 mining sites to private firms with an area of around 58,000 sq km, it said.

Sitting atop a massive mining wealth officially estimated at $1.3 trillion, the Gulf Kingdom aims to "boost revenue from this industry to $2.8 billion and lift the sector's contribution to GDP to $64 billion by 2030," the report added.

"After the new mining law is enforced following the cabinet approval, the mining sector is poised for a big leap...we expect it to become the third largest contributor to GDP and probably the largest in the manufacturing sector in the Kingdom."

A breakdown showed phosphate wealth in the world's largest oil exporter is estimated at $321 billion while the value is estimated at $229 billion for gold, $222 billion for copper, $138 billion for zinc, $70 billion for iron ore, $70 billion for uranium , $37 billion for silver and nearly $140 billion for silica and limestone.

In 2018, Saudi Arabia unveiled plans to restructure its mining industry to attract private capital into the sector and expand sources of income.

(Writing by Nadim Kawach; Editing by Anoop Menon)


Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2020