JEDDAH: The second International Exhibition for Mineral Exploration and Development (MENA-EX 2009) begins today at Hilton Hotel. Eighty companies representing a global spread of mining and related industries have set up shop in a 400 square meter exhibition alongside the MENA-EX forum and a series of seminars that will continue until Jan. 20.
Over 1,000 visitors registered their attendance as either expert speakers or businessmen. They include Abdallah Dabbagh, president and CEO of Maaden, Abdulaziz Al-Shaibani, chairman of Earth Sciences at King Fahd University of Petroleum and Minerals (KFUPM), and Sultan bin Jamal Shawli, deputy minister for mineral resources.
Mining and mineral extraction, including phosphates, bauxite and gold, has firmly established itself as another pillar of the Saudi economy attracting massive investment and input of technology and skills.
High on the agendum this year will be the changing economy and investment landscape in the Kingdom, especially in light of the world financial crisis and decline in oil price over the last few months. The Kingdom’s mining industry has taken on a new momentum in the last three years since joining the World Trade Organization (WTO) and the passing of a very transparent and attractive mining act in early 2005 that encouraged inward investment in the mining industry.
The Ministry of Petroleum and Mineral Resources has estimated the income of Saudi mineral industries at SR14 billion, yielding profits of up to SR5.2 billion. Investment in this sector totals about SR45 billion, with major world players such as Rio Tinto-Alcan signing up bauxite development deals with Maaden.
More than 1,000 experts and businessmen in the mining sector will participate in the forum.
Ines Scotland, CEO of an ASX-listed minerals project development company, Citadel Resource Group Ltd., will make a keynote presentation to delegates on the first day of the forum.
During an address to the Sydney Mining club on Aug. 1, 2008, Scoland said Saudi Arabia had some very attractive features and was attractive to mining business. She noted that mining businesses in the Kingdom could be 100 percent foreign owned-and in the case of Citadel, eight out of the nine in the Kingdom are-and that after 20 percent corporation tax, 100 percent of the profits could be exported.
She also pointed out the benefits of cheap energy — 2.5 cents per kw/hour and substantial investment in infrastructure and college education to provide qualified labor.
Citadel has a portfolio of gold and base metals projects in Saudi Arabia, with its operations headquarters located in Jeddah. Citadel is one of only a handful of Western mining companies operating in Saudi Arabia, and Scotland is in a unique position as the only one headed by a woman.
The forum officially opens this evening after the first day’s presentations. The opening ceremony will be conducted by Makkah Gov. Khaled Al-Faisal.
