Saudi-based Al-Masane Al-Kobra Mining Co. (AMAK) has signed a letter of intent with UK-based Power Metal Resources to create a joint venture focused on exploring Saudi Arabia’s Qatan mining site.
According to a statement released on the Saudi stock exchange Tadawul, AMAK will hold a 51% stake in the joint venture, while Power Metal Resources, a company listed in London, will own the remaining 49%.
This agreement follows AMAK’s recent unveiling of its strategic growth plan, which targets expanding gold production and operational capabilities through the end of 2025.
This move aligns with Saudi Arabia‘s Vision 2030 goal of positioning mining as the third pillar of the economy, with the country’s mineral wealth estimated at $2.5 trillion.
“AMAK is pleased to sign this letter of intent with Power Metal Resources to fully unlock the economic potential of its exploration assets in a timely and efficient manner,” said Geoff Day, CEO of AMAK.
He added, “Strategic partnerships like this allow AMAK to focus on its core operations while developing Saudi Arabia’s vast mineral resources in line with Vision 2030.”
AMAK highlighted that the joint venture aims to leverage Power Metal Resources’ expertise in exploration and resource definition, particularly for nickel and related minerals.
Additionally, the collaboration provides AMAK the opportunity to concentrate on the exploration, study, development, and exploitation of base metals such as copper and zinc, as well as precious metals like gold and silver, within Saudi Arabia.
“This marks a significant step for Power Metal Resources in partnering with a major Saudi mining company, further advancing our presence in the Arabian Shield. We are eager to maximize the potential of Qatan and will keep the market updated as our collaboration progresses,” said Sean Wade, CEO of Power Metal Resources.
The letter of intent is effective for three months and can be extended based on mutual agreement. Importantly, it does not impose any financial or legal obligations on either party, with detailed contracts to be drafted later.
The Qatan exploration license spans 72.24 square kilometers and is situated approximately 70 km east of AMAK’s existing mines and 32 km south of Yadamah in the Najran Province of Saudi Arabia.
Founded in 2008, AMAK is recognized as Saudi Arabia’s first private-sector mining company. The firm recently reported a 77% increase in net profit for the first half of this year, reaching SR76.9 million ($20.50 million), compared to the same period in 2023.
This profit surge is attributed to increased sales volumes of copper and zinc, along with higher prices for these metals and gold, which also drove the company’s net profit in the first six months. For the second quarter, AMAK’s net profit soared to SR61.8 million, up from SR10.6 million in the previous year.
This joint venture with Power Metal Resources signals AMAK’s commitment to expanding its mineral exploration efforts and capitalizing on the Kingdom’s untapped mining potential under the Vision 2030 framework.
