Australian billionaire Gina Rinehart has secured a significant expansion in her mining operations by winning five licences for gold exploration in Saudi Arabia. This development, announced last week, is a collaboration between Rinehart’s Hancock Prospecting subsidiary, Midana Exploration, and Saudi Arabia’s largest mining company, Maaden. The joint venture marks a notable entry for Hancock into the Middle Eastern mining sector.
In a statement made on Sunday, Rinehart praised Saudi Arabia’s commitment to fostering a robust mining industry, highlighting the nation’s “pro-mining policies.” She expressed excitement about the Kingdom’s ambition to establish a world-leading mining sector as outlined in its strategic plan, Vision 2030, which aims to diversify its economy beyond oil.
Strategic Exploration in the Nabita Ad-Duwayhi Gold-Belt
The joint venture focuses its efforts on the Nabita Ad-Duwayhi Gold-Belt, an area considered promising due to its proximity to one of Maaden’s existing gold mines. This partnership is viewed as a strategic move, enabling both companies to leverage their respective strengths in exploration and project development.
Historically reliant on its oil wealth, Saudi Arabia is now prioritizing the mining sector as a “key pillar” of its economic diversification strategy. In recent years, the government has actively encouraged foreign investment and technological collaboration in mining, aiming to position itself as a global mineral hub.
Hancock Prospecting has also been diversifying its own portfolio beyond iron ore. The company has made significant investments in rare earths and lithium, partnering with firms such as MP Materials, Lynas Rare Earths, Liontown Resources, and Vulcan Energy Resources.
Record Gold Prices Drive Mining Interest
The surge in gold prices over the past year has intensified interest in the precious metal, prompting companies to explore new mining opportunities. Rinehart noted that Hancock’s experience in exploration and project management is substantial, citing the successful completion of the US$10 billion Roy Hill project, which was delivered on time and within budget.
“Our company brings substantial experience across exploration, project development and operations, including the rare distinction of building the US$10 billion Roy Hill project both on time and on budget,” said Rinehart.
Maaden’s Chief Executive Officer, Bob Wilt, stated that the partnership with Hancock will expedite exploration efforts across Saudi Arabia. “This program will speed up discovery. It also ensures we can build, develop and operate at pace and scale, all while developing a talent pipeline,” Wilt remarked. This collaboration represents a significant milestone as it is reportedly the first time an Australian firm has partnered with Maaden, which has been ramping up its exploration activities across the Kingdom.
As both companies embark on this venture, the implications for the mining sector in Saudi Arabia are considerable, potentially attracting further investment and innovation in the region. The partnership is emblematic of the shifting landscape in global mining, where collaboration and diversification are becoming essential strategies for success.
