JOHANNESBURG (miningweekly.com) – Aim-listed gold explorer and developer Kefi Minerals on Monday said it was seeing encouraging signs from the Saudi Arabian government regarding its minerals and metals policy.
The company noted that, with the creation of a new energy, industry and minerals resource ministry, headed by Khalid al-Falih – currently also the chairperson of State-owned oil company Saudi Aramco – new policies would be implemented to further encourage minerals exploration and development.
The ministry will handle oil and gas extraction, power generation and distribution, mining and industrial development.
Kefi operates the 40%-owned Jibal Qutman project, in Saudi Arabia, with mineral resources totalling 700 000 oz. The other 60% is owned by Artar.
The two companies expect new mining policy in the kingdom, which has low exploration, development and operating costs by industry standards, to be issued before year-end. The policy review will also impact Kefi’s plans for developing a heap-leach gold project at Jibal Qutman.
Further, it noted that the Saudi Industrial Development Fund provides loans for up to 75% of the capital cost of mine development at nominal interest rates.