Christian Milau
The following article was featured in Future Minerals Forum’s January 2025 Newsletter. Read the full article and more at: www.newsletter.futuremineralsforum.com
Saudi Discovery Company: Pioneering Success in Saudi Arabia’s Mining Sector
In the dynamic and rapidly evolving landscape of global mining, Saudi Discovery Company (SDC) is emerging as a leading exploration company, demonstrating agility and commitment to successfully progressing the industry within the Kingdom. Within a short twelve months, SDC has established itself as a key player in Saudi Arabia’s rapidly growing junior exploration and mining sector, achieving milestones that underscore the Kingdom’s commitment to becoming a premier destination for mining investment.
Leading the Way with 100% Foreign Owned Exploration Licenses
As part of SDC’s groundbreaking journey in Saudi Arabia, the company has been awarded several “100% foreign owned junior exploration licenses” (a first in the Kingdom) highlighting the progressive regulatory reforms and investor-friendly policies spearheaded by Vision 2030. These reforms have transformed Saudi Arabia into one of the world’s most attractive under-explored jurisdictions. The world class infrastructure (roads, power, ports, cities), attractive fiscal regime (low tax and royalties, and no equity in projects), free flow of funds in and out of country, excellent security and safety, a supportive mining law, and a long-term vision support a rapidly growing sector. Arguably, these factors shape Saudi Arabia into the most exciting mining jurisdiction over the coming decades.
The speed and efficiency with which SDC secured its exploration licenses underscore the streamlined processes and transparency introduced by the Ministry of Industry and Mineral Resources. This milestone not only sets a precedent for other international junior exploration players, but also reflects the Kingdom’s openness to fostering partnerships that drive economic diversification.
According to industry data, fewer Tier-1 deposits (i.e., large, long-life, and high-quality mines) have been discovered in recent years. Many major mining companies now solely rely on acquiring projects discovered by junior explorers rather than undertaking the high-risk exploration activities themselves. This global trend demonstrates the importance of junior exploration companies as the primary drivers of new discoveries, particularly in underexplored regions like Saudi Arabia.
Exploration Licenses Through Competitive Auctions
In addition to acquiring exploration licenses through open-ground applications, SDC’s success in securing multiple exploration licenses (without a partner to date) through competitive auctions further demonstrates the possibilities in the region. These awards are a testament to the company’s technical expertise and the team’s experience with multiple mine discoveries in the region and similar geology (Bisha mine and Asmara/Emba Derho deposit in Eritrea).
The competitive auction process itself is a hallmark of the Kingdom’s mining reform agenda. By fostering a level playing field and promoting transparent competition, Saudi Arabia has ensured that the best-qualified players lead the exploration and development of its vast mineral resources.
Vision 2030: Unlocking Saudi Arabia’s Potential
At the heart of SDC’s success lies the foundation laid by Saudi Arabia’s Vision 2030—an ambitious framework designed to diversify the Kingdom’s economy and reduce its dependence on oil. Vision 2030 places significant emphasis on unlocking the potential of alternative sectors, with mining identified as a key pillar of this transformation.
Through long-term planning, Saudi Arabia has implemented forward-thinking policies that attract global investors while ensuring sustainable and responsible development. The mining investment law, introduced under Vision 2030, establishes clear regulations, transparency, and a competitive fiscal regime. These measures not only de-risk investments, but also create an environment where companies like SDC can thrive.
The Kingdom’s long-term vision extends to building infrastructure, enhancing workforce capabilities, and fostering technological innovation, all of which are vital for a competitive and sustainable mining industry. By prioritizing strategic planning, Saudi Arabia is setting itself apart as a world-class mining destination that offers stability and growth for investors for decades to come.
Saudi Arabia: A World-Class Mining Destination
SDC’s achievements to date reflect a larger narrative of Saudi Arabia’s emergence as a global mining hub. The Kingdom is home to an estimated US$2.5 trillion in untapped mineral resources, spanning commodities such as gold, copper, zinc, phosphate and rare earth elements. With its strategic location, robust infrastructure, approximately US$200 million fund for exploration grants, and Saudi Industrial Development Fund’s willingness to provide 75% of initial mine capital at attractive interest rates with a five-year deferral on repayments, Saudi Arabia offers unparalleled opportunities for investors.
Driving the Future of Mining
SDC’s recent progress is an excellent example of what is possible in Saudi Arabia’s emerging mining sector. As SDC continues to expand its footprint, it stands as an example of the transformative potential of collaboration between visionary governments and forward-thinking explorers with deep experience in mine discovery, financing, and development.