Abha, September 26, 2023, The sprawling Asir region, covering an expanse of 81,000 square kilometers, boasts a wealth of metallic and non-metallic minerals. Among these, gold, copper, lightweight aggregates, and granite are particularly prominent, with more than 34 different mineral varieties found in the region.
According to data from the Ministry of Industry and Mineral Resources, the estimated value of these minerals in Asir stands at a staggering SAR 240 billion. Notable mineral reserves include SAR 78.7 billion worth of zinc, SAR 73.9 billion worth of gold, SAR 60.9 billion worth of copper, and SAR 22.5 billion worth of silver.
Underpinning this mineral-rich bounty is Saudi Arabia's ambitious Vision 2030, which places significant emphasis on the metal and mining sector. The objectives are multifaceted, aiming to maximize the sector's contribution to the nation's GDP, bolster the trade balance, ensure the sector's long-term sustainability, and create substantial employment opportunities. As outlined by the ministry, this sector is poised to become the third pillar of the Saudi industry, joining the ranks of the oil and gas and chemical industries.
By 2035, it is anticipated that the value chains associated with minerals will inject more than SAR 281 billion into the GDP, generate over 265,000 new job opportunities, and trim net imports by at least SAR 37 billion. Consequently, this will substantially increase government revenues, projecting an annual boost of SAR 10.9 billion.
The Asir region, according to the Saudi Geological Survey, is home to a vast array of mining reservoirs, with 404 scattered across its terrain. The Chamber of Commerce and Industry in Abha highlights the prevalence of gold deposits, numbering 131, followed by copper with 52 deposits, tungsten with 12, zinc ore with 10, and silver with nine, among others.
In the non-metallic ore category, lightweight aggregate deposits lead with 46, followed by granite with 27, quartz with 19, and limestone and marble, each with 13. Other notable deposits include laterite, feldspar, scoria, talc, gabbro, mica, graphite, fluorite, kaolin, asbestos, and basalt.
The Asir region has consistently held its position as the fifth-largest holder of active mining licenses in the kingdom until July 2023, boasting 191 out of a total of 2,348 licenses issued by the Ministry of Industry and Mineral Resources. These licenses encompass activities related to exploration, reconnaissance, exploitation, building materials quarrying, and surplus mineral ores.
Furthermore, the mining sector in the kingdom, particularly in Asir, serves as a crucial catalyst for indirect investment opportunities in various other sectors. This encompasses the industrial sector, where mining contributes through the provision of crushing and milling units, metal ore processing facilities, metal smelting and refining units, and manufacturing industries associated with exploited ores.
Additionally, the contracting sector receives substantial support from mining activities, which aid in the construction and maintenance of facilities, transportation and logistics services, drilling and detonation services, equipment maintenance, road construction, and the extension of power and water lines.
The expansion of the mining sector in Asir also ripples through education and training, financial and banking services, and transportation of raw materials, personnel, and products. Commercial activity receives a boost with the increased demand for equipment, fuel, spare parts, construction materials, and mining supplies. Overall, the mining sector in the Asir region plays a pivotal role in diversifying the Saudi economy and driving growth across multiple industries.
