AuKing enters Saudi Arabia mineral exploration and
development MoU
AuKing Mining Limited (ASX: AKN) today announced that it had entered into a
Memorandum of Understanding with Barg Alsaman Mining Company (BSMC),
subsidiary of the Segia Gulf Group (Segia) (a substantial Saudi Arabian corporate
group) for the purpose of jointly exploring and developing mineral projects in the
Kingdom of Saudi Arabia.
Managing Director of Segia Gulf Group, Sheikh Abdullah Al-Qahtani said “The Kingdom
of Saudi Arabia is focusing substantial resources to expand our mining industry and to
provide a basis for developing mining projects and providing significant opportunities to
increase skills and expertise of local Saudis in this sector. The reputation of Australian
explorers is first class and we look forward to working with AuKing’s technical team as we
seek to identify and develop suitable mining projects.”
AuKing’s Chairman, Asimwe Kabunga commented: “The Board of AuKing is pleased to
announce the collaboration with Segia Gulf Group (via its subsidiary BSMC), a substantial
Saudi Arabian corporation, for the specific purpose of exploring and developing mineral
projects in the Kingdom of Saudi Arabia.”
“There is little doubt that the Government of Saudi Arabia has a serious agenda to create a
mining sector that attracts global attention and participation and already has many of the
major mining players involved,” Mr Kabunga said.
CEO of BSMC, Dr Elhamem M. Abdalla said, “It is an excellent opportunity for the
company to partner with a company with great exploration experience and listed on the
ASX. We will do what is necessary for the success of this partnership and work together to
develop the field of mining in the Kingdom of Saudi Arabia.”
CEO, Paul Williams also commented: “AuKing is indeed fortunate to have established a
strong relationship with a large Saudi Arabian corporate group that has more than 40 years
operating experience in the Kingdom and which is now looking to develop various mining
projects. While AuKing’s existing copper and uranium projects in Tanzania and Australia
continue to be a focus, this unique opportunity could not be overlooked,” Mr Williams said.
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Saudi Arabia’s Mining Sector Expansion
Saudi Arabia’s Vision 2030 reform agenda has elevated the mining sector’s role in the Saudi
economy, positioning it as a third key economic pillar as part of the National Industrial
Development and Logistics Program. The Kingdom’s focus on mining is driven by a desire to
diversify the economy and increase non-oil revenue as it weans itself off oil dependence.
Furthermore, minerals are key inputs in many industries essential to Vision 2030 objectives,
such as achieving a green transition, digitizing the economy, becoming a global hub for
technology and connectivity, producing nuclear energy, and localizing military procurement.
Saudi Arabia created the Ministry of Industry and Mineral Resources in 2019 to accelerate
the mining industry’s growth. To attract international and domestic investment, Saudi Arabia
introduced a new mining law making it easier for companies to explore for and extract
minerals and offering financial incentives. Saudi Arabia also increased the activities of
the Saudi Geological Survey, which recently awarded a $207 million contract to the Chinese
Geological Survey as part of a bid to complete, by 2025, 50% of the survey of Saudi
Arabia’s Arabian Shield, a more than 230,000 square mile area of Precambrian rocks
located in western Saudi Arabia.
The Gulf State has revised upwards estimates for its largely untapped mineral resources
to $2.5 trillion, from a 2016 forecast of $1.3 trillion. This estimate is based on 30% of the
Arabian Shields exploration, suggesting there is significant discovery upside potential.
AuKing Site Visit
AuKing representatives recently conducted a site visit with BSMC personnel to identify
certain existing and future areas of likely collaboration. The results from this site visit will
allow AuKing to proceed with exploration activities (as part of the new MoU) within a matter
of weeks
AKN Price at posting:
1.9¢ Sentiment: Hold Disclosure: Held
