Building on efforts to expand its mining industry, the Ministry of Industry and Mineral Resources (MIM) has announced the opening of the next steps associated with awarding the license for the Khnaiguiyah site. Interested prospective investors now can submit their Expression of Interest and complete their Pre-Qualification Questionnaire (PQQ). Khnaiguiyah is the Kingdom's largest exploration site, covering more than 350 km2. Located in Al Rayn Terrane, it forms part of the Arabian Shield, which has a potential value of $1.3 trillion across 48 commodities. Monday's announcement follows the licensing round announcement made during the recent Future Minerals Forum, where interested parties were invited to access the ministry's data room with historical studies by visiting the Ministry's online portal. The award process will include three stages — qualification, proposal and auction, which could feature multiple rounds. The Ministry expects to conclude the award process in the second quarter of 2022. The PQQ requests that prospective bidders submit customary information regarding their technical knowledge and experience, capability, capacity, and organizational and financial standing, mapped to the project's outlined criteria. The PQQ enables the Ministry to assess an organization's professional and technical qualifications, and competence to become the license holder. Qualified bidders are invited to submit their completed PQQ by March 14, 2022. This tender process is based on the new Saudi Mining Investment Law, which was developed following extensive global benchmarking and is among the most competitive in the world. The law is part of an overarching effort led by MIM to transform and attract investment in its mining sector, in line with the Kingdom's Vision 2030, which identified mining as the third pillar of industrial growth. Extensive exploration work already has been carried out at Khnaiguiyah site, covering 100,000 meters drilled and a 3D geological model. The Saudi Geological Survey has confirmed the site's considerable geological potential of approximately 26 million tons of zinc and copper, both critical minerals for the global energy transition. As local content and communities are a top priority for Saudi Arabia as part of its commitment to ESG, the SAR 2bn Khnaiguiyah project could potentially generate 2,000 to 3,000 direct and indirect jobs and would contribute substantially to developing the country's zinc and copper downstream industries. — SG
