AMAK CEO expects mining sector to increase Saudi GDP to SAR 240 bln by 2030

Yahia AlShangiti, CEO of Al Masane Al Kobra Mining Co. (AMAK)

Yahia AlShangiti, CEO of Al Masane Al Kobra Mining Co. (AMAK), which is planned to be listed on the Saudi Exchange (Tadawul), said the mining sector’s strategy aims to increase the sector's contribution to the Kingdom's gross domestic product (GDP) from the current SAR 64 billion to SAR 240 billion by 2030.

He added that the strategy will also help reduce imports by nearly SAR 37 billion and create 219,000 new job opportunities in the Kingdom.

The mining sector receives great attention from the Saudi government in line with Vision 2030, which set a clear plan for this sector, led by the Ministry of Industry and Mineral Resources, so it becomes the third pillar of the Saudi industry, especially as the Kingdom’s mineral resources at estimated at SAR 5 trillion.

AMAK, which operates in the mining sector, is the first private mining company in the Kingdom, which produces copper and zinc concentrates as well as processed gold and silver doré. Since its inception, the firm has been producing and selling copper concentrates.

AlShangiti indicated that the company’s annual production capacity reaches approximately 40,000 ounces of gold, 8,000 tons of copper and 25,000 tons of zinc currently. “AMAK has the ability to expand its projects in Asir, Najran, and other regions in the Kingdom. It also has wide spaces for exploration, development and mining across the Kingdom.”

The company’s Al Masane and Guyan mines have reserves of 7.9 million tons and 2.9 million tons of ore, respectively.

In 2019, the firm launched a new underground gate to access the third mining zone at the Moyeath copper and gold mine. It also started to expand the Moyeath mine to increase its zinc and copper production by 80% and 50%, respectively, by 2024.

AlShangiti stressed that AMAK, which has licenses to explore within an area of 205 square kilometers, is able to develop and expand its business to explore minerals through organic and inorganic growth opportunities inside and outside the Kingdom.

He revealed that the company has a strong presence, a track record of success, operational excellence, smart project development, and long-term planning.

AMAK is also well aligned with Vision 2030, which considers the development of the mining sector a national priority.

The Kingdom has distinct mineral potentials, including the availability of mineral ores, excellent geological capabilities, vast and diverse geography, as well as the necessary infrastructure, such as road network, airports, ports, global marine navigation routes, and available energy sources.

Crown Prince Mohammed bin Salman previously described the sector as another untapped oil resource, the CEO said.

He indicated that the Saudi government adopted several ambitious initiatives and projects to organize and strengthen the Kingdom's position regionally and internationally in the field of mineral resources.

The world is witnessing an increasing demand for minerals of all kinds, due to the increase in electrification and green economy initiatives.

The international mining companies’ revenues are estimated at more than $0.5 trillion, of which 25% is dominated by copper, AlShangiti concluded.