Saudi Arabia allocates $182 million for mineral exploration incentives

RIYADH - Saudi Arabia has created a mineral exploration incentive programme with a budget of over $182 million, the country's minister of industry and mineral resources said on Wednesday.

Mining is a key part of Saudi Arabia's efforts to build an economy that does not rely mostly on oil, involving a shift towards tapping vast reserves of phosphate, gold, copper and bauxite.

On Tuesday, Minister of Industry and Mineral Resources Bandar Alkhorayef told Reuters that the government has revised upwards estimates for its untapped mineral resources to $2.5 trillion, from a 2016 forecast of $1.3 trillion, and reiterated it at the Future Minerals Forum on Wednesday.

"These figures I have just showed to you are only based on 30% of the Arabian shields exploration, suggesting more to be discovered," Alkhorayef said.

Deals worth 75 billion riyals ($20 billion) are expected to be signed in Riyadh during the event, he added, while also announcing the fifth and sixth round of a licensing programme offering access to 33 exploration sites this year.

Saudi Arabia plans to award over 30 mining exploration licences to international investors this year, and could offer larger exploration areas of more than 2,000 kilometers for each licence.