Power Metallic takes charge of Saudi Arabia expansion strategy
Power Metallic Mines (TSX-V:PNPN) has entered into a strategic alliance and joint venture framework agreement with Amaar United Mining to jointly pursue mining licence opportunities in the Kingdom of Saudi Arabia.
The agreement, which has a 50/50 ownership, includes an initial approved post-award work program funding framework of up to US$10 million ($14 million). Power Metallic will contribute US$2.5 million of the funding, while Amaar Mining will contribute the remaining US$7.5 million.
Power Metallic is expected to act as a technical lead and proposed operator of any post-award joint venture, subject to the execution of definitive joint venture documentation. Amaar Mining will act as the local strategic partner, leading local coordination, relationship management, and administrative support.
At the Jabal Baudan Project, Power Metallic intends to advance the project through a staged exploration approach. Work will include compilation, reconnaissance, review of historical data, and advanced exploration targeting of high-priority zones.
The company expects that Saudi Arabia’s exploration enablement program and broader mining sector reforms may help support continued exploration investment in the Kingdom.
Building a durable exploration platform
CEO Terry Lynch says this agreement is an “important step” in the company’s strategy to build a durable Saudi Arabia exploration platform.
“Our award of the Jabal Baudan licence demonstrated that Power Metallic can compete successfully in one of the world’s most important emerging mining jurisdictions,” Lynch says.
“This partnership with Amaar Mining gives us a strong local partner and a clear framework to pursue additional high-quality licence opportunities in future auction rounds, while preserving 50/50 economics and maintaining disciplined capital exposure.”
Amaar Mining CEO Naser Fahad Al Qahtani says the deal represents a step towards the company’s plans to expand its business and enhance its presence in the mining sector.
“This partnership aligns with the objectives of Saudi Arabia’s Vision 2030, which aims to develop the mining sector and increase its contribution to the national economy,” Al Qahtani says.
Vision 2030
Saudi Arabia’s Vision 2030 identifies the mining sector as a key component of its diversification strategy, as well as energy, logistics, and manufacturing.
As previously reported, the Kingdom says its mineral resources are worth hundreds of billions of dollars, with estimates of the “untapped mineral wealth” climbing well beyond earlier forecasts as exploration expedites.
Saudi Arabia has launched one of the world’s largest geophysical and geochemical survey programs, covering 600,000km2 including the Arabian-Nubian Shield — a geological province rich in mineral potential.
Under the Kingdom’s strategy, the sector’s contribution to gross domestic product is set to triple by 2030, reaching roughly SAR260 billion (about $103.2 billion), and will generate thousands of jobs.
Over the next few years, the Kingdom expects the mining and minerals industry to be a major new pillar of sustainable economic growth.
Saudi Arabia also attaches mining to the National Industrial Development and Logistics Program (NIDLP), underscoring the sector’s role in broader industrial and export expansion. The NIDLP aims to stimulate private investment worth more than SAR1.7 trillion across industry, energy, mining, and logistics by 2030 — painting mining as an engine of investment and local value creation.
Power Metallic in the Kingdom
The Jabal Baudan property, covering more than 200km2, is located in a highly prospective region known to host copper, gold, and zinc. The area forms part of the broader Jabal Sayid belt, a district recognised for volcanogenic massive sulphide-style mineralisation.
Power Metallic views the project as a high-potential exploration asset, as well as a strategic beachhead for broader participation in Saudi Arabia’s rapidly developing mining sector.
In June 2025, Power Metallic was awarded the Jabal Baudan licence, positioning the company as one of the few foreign companies with mining concessions in the Kingdom.
Power Metallic is a Canadian mineral explorer focused on a diverse range of minerals. The company also owns the Nisk Project in Canada, which is considered prospective for nickel, copper, platinum group elements, gold, and silver.
Write to Aaliyah Rogan at Mining.com.au
Images: Power Metallic
