The Arabian Nubian Shield - untapped mineral wealth?
Throughout history many gold rushes have occurred across the globe thrusting the mineral known as "AU" on the periodic table to the forefront of media attention, the first gold rush in history came in the 1690's in Brazil whilst the Portuguese empire ran the country, following subsequent gold rushes happened across the planet including notable events in California, USA in 1848 and Victoria, Australia in 1851. One thing has not changed since the dawn of time and gold being the "king of the minerals" is one of them.
The Arabian Nubian Shield (ANS) land mass sits at three million sq. kilometres spanning nine countries flanking the red sea and is a powerhouse of potential mineral wealth- this region sits as one of the largest land mass area's of base metals which has hardly been touched by man due to war, historical tribal tensions, lack of investment and lack of interest due to other discoveries I.e Saudi's discovering oil in the 1930's.
Why now after all these years?
This region has finally started to be noticed as a potential hotbed for exploration due to changing legislation from countries such as Egypt, Ethiopia and Saudi Arabia making it easier for foreign countries to enter these nations to mine. Egypt had a law which meant all foreign companies entering Egypt would have to do so under a 50/50 joint venture with Egyptian government tied entities - that has been taken away and companies can now 100% own projects but pay a royalty fee. Egypt is the home to the "Sukari" gold mine which has a 5.8 million oz reserve which will be mined over a 12+ year mine life.
Ethiopia has seen a potential improvement in their mining sector with London listed Kefi Minerals on the cusp of developing the first major mine in the country for the last 40 years, with the mine due to be up to the standards expected globally for a deposit of this scale (currently 1.7 million oz gold). Kefi’s Tulu Kapi gold mine coming into production would push Ethiopia gold exports up by around 40%.
By far the most interesting angle to look at ANS potential is Saudi Arabia - the nation is dependent on oil, when the oil price is flying the economy is thriving but when the price of oil drops below a certain level its a bust scenario. There is no balance, no diversification. In 2021 mining legislation was changed to help the country bring in foreign mining companies to further explore the vast countries under explored regions- many of which have seen little exploration since 1960-1970. Under the Saudi 2030 plans mining is being coined as the "third pillar" of the Saudi economy with the sector creating jobs, and more importantly the diversification the economy needs when oil goes into bear market territory. Mining is being pushed by figureheads such as Khalid Al Mudeifer, the deputy minister of industry & mineral resources who has recently been doing interviews with London based media outlets such as proactive along with presenting the proposition of the countries potential at the Saudi future minerals forum in Riyadh which is a yearly event held in January.
Studies have been completed and its been reported via numerous different agencies including the Saudi government that the ANS holds mineral wealth to the tune of £1.3 trillion with a abundance of gold, copper, zinc amongst many other minerals.
It may well be worth taking note and keeping a eye on further developments in this region as it could very well be the next "gold rush".
*disclaimer - I own stock in "Kefi Minerals" mentioned in the article. This mention is not a recommendation to buy or sell.
