RIYADH: An alliance of Saudi-based mining company Ma’aden and Canadian mining firm Barrick Gold plans to spend more than SR47 million ($12.5 million) on the exploration of the Umm Al-Damar site in Saudi Arabia, announced the Ministry of Industry and Mineral Resources.

This comes after the consortium was awarded mining licenses for exploration of the site, as part of the ministry’s Accelerated Exploration Initiative, which aims to provide a number of exploration licenses via competitions, Saudi Press agency reported. 

Both mining companies will utilize the budget in accelerating the exploration process. This will include drilling of an estimated 54,000 meters, as well as implementing an integrated geophysical and chemical survey at the site.

In addition, the alliance will also invest as much as SR1 million across several community-related initiatives such as employing neighboring communities, the development of the local technical college in Mahd Al-Dahab governorate, and training graduates during the two-year exploration program, among other initiatives.

The site captured the interest of an estimated 20 domestic and global mining firms, 13 of which made it to the bidding stage. 

The qualification criteria for the site included, but are not limited to, technical expertise, financial ability, and commitment to community, as well as environmental management plans and related work programs.

Umm Ad Damar, which covers an estimated area of 40 sq. km, is located 300 km northeast of Jeddah and 25 km northwest of Mahd Al-Dahab governorate. The site includes several mineral deposits including copper, zinc, gold, and silver.

Mining is increasingly a key element of Saudi Arabia’s economic development, after energy and petrochemicals, as the Kingdom seeks to wean its economy off oil production and exports.

Saudi Arabia is expecting its mineral wealth to exceed earlier estimates of $1.3 trillion as the Kingdom plans to triple spending on the exploration of metals over the next three years.