Eng. Meshary AlAli AlDeheshi’s interview on Bloomberg and his talk about “Saudi mining”, the fastest growing in the world.. What are the incentives?
Saudi Arabia has recorded significant progress in the global assessment of investment risks in the mining sector issued by MineHutte, achieving the fastest global growth in the development of the regulatory and basic environment attractive to investments during the last 5 years.. More analysis with Eng. Meshary AlAli AlDeheshi, Chairman of Rasi Investment Company and CEO of Golden Compass Mining Services Company.
Watch the full interview on Bloomberg
Interview with Meshary AlAli AlDeheshi – Chairman of Rasi Group on Bloomberg
Engineer Meshary AlAli AlDeheshi, CEO of Golden Compass Mining Services Company, stated that the Kingdom of Saudi Arabia seeks to access vital minerals used in key areas, strengthen the Saudi sector and make it more sustainable.
AlDeheshi added that Manara Company is looking to diversify the Saudi economy externally, especially in the mining sector, which is radically different from other sectors. Diversifying the economy contributes to empowering the private sector and playing a greater role in the development process away from the government role.
To watch the full interview on Bloomberg: Click here
Golden Compass plans to list its shares on the Saudi Stock Exchange in 2025
Meshary Al-Ali, CEO of Golden Compass Mining Services Company, revealed his company’s intention to offer its shares for public subscription on the Saudi Stock Exchange next year.
He pointed out in an interview with Al-Sharq, on the sidelines of the third Future Minerals Forum held in the capital, Riyadh, that “Golden Compass”, which specializes in the field of mining, especially exploratory drilling, as it has more than 40 rigs, aspires to be within the “TASI 50” index. For the largest Saudi companies after being listed on the stock exchange in 2025.
Al-Ali said it is likely that the mining sector in the Kingdom will witness a qualitative leap in light of the Ministry of Industry and Mineral Resources granting many licenses to companies for exploration, in addition to legislation, government support, and infrastructure, in light of the great demand from foreign companies.
The Ministry of Industry and Mineral Resources and 8 local and international companies specialized in mining to support the “Nuthree” incubator
His Excellency the Deputy Minister of Industry and Mineral Resources for Mining Affairs, Eng. Khaled bin Saleh Al-Mudaifer, inaugurated today the training program for the mining exploration incubator “Nuthree”, in the presence of a number of officials of government agencies and partners from the private sector, at the Enterprise Support Center of the Small and Medium Enterprises Authority.
Al-Mudaifer explained that the launch of the “Nuthree” incubator comes within the framework of the Ministry of Industry and Mineral Resources’ keenness to create a sustainable local exploration environment. To enable emerging individual explorers, local small and medium companies, and investors interested in the mining sector, in line with the objectives of the Kingdom’s Vision 2030 and the National Industry Development Program and Logistics Services; To make the mining sector the third pillar of national industries.
He stated that the Nuthree incubator is the ideal platform for entrepreneurs in the Kingdom to invest in the mining sector. To empower explorers and entrepreneurs, develop their skills, and embrace the largest number of startup companies and support them, in cooperation with the Small and Medium Enterprises Authority “Monshaat” and the Saudi Geological Survey; To be important elements in the development of the mining sector, especially in the field of mining exploration, which is a fertile environment for investment.
In turn, the CEO of the Saudi Geological Survey, Eng. Abdullah bin Muftar Al-Shamrani, stated that through the exploration incubator, sustainable strategic partnerships will be built to promote entrepreneurship in the field of mineral exploration and provide related services. Such as analyzing geological data, exploiting local capabilities, and exchanging information, knowledge, and expertise in the mining sector.
The inauguration ceremony witnessed the signing of a memorandum of understanding by the Ministry of Industry and Mineral Resources with Umm Al-Qura University, which included aspects of cooperation, organizing workshops in the field of mining within the training program of the mining exploration incubator “Nuthree”, and providing training courses in economic feasibility studies and mining resources and reserves, in addition to developing skills. Technical support for explorers in the Kingdom, employing their capabilities in establishing small and medium-sized emerging companies and supporting them with global expertise, contributing to providing the appropriate environment and facilities necessary to support innovation, providing specialized consultations, and exchanging knowledge, experiences and important research results.
The Ministry also signed memorandums of understanding with 8 international and local companies specialized in the mining sector. They are: the Saudi Arabian Mining Company “Ma’aden”, “AMAC Mining Company”, the “DRA Global Company”, “Golden Compass MSA”, “Ajlan and Brothers Mining Company”, “Gold and Minerals Mining Company Limited”. Behre Dolbear Company and Amed Fund Company; This is with the aim of exchanging practical and scientific experiences between the two parties, and contributing to developing the capabilities of explorers in the field of mining exploration, raising technical levels, and providing the necessary support to incubators, by holding training courses related to exploration activities, resources and mining reserves, and developing technical work programs for exploration licenses, in addition to defining Providing explorers with the technical requirements necessary to apply for exploration licenses and developing their skills in this field.
It is noteworthy that the number of applicants for the incubator reached 500 applicants, and 17 candidates passed the acceptance criteria, between companies and individuals, as their training journey is scheduled to begin in the “Nuthree” incubator for a period of 6 months, from this September to February 2024 AD, through a program dedicated to developing their skills. ; To ensure the provision of the necessary knowledge, and to provide them with local and global expertise; To move forward towards achieving a sustainable mining exploration environment in the Kingdom.
Interview with the CEO on Bloomberg and his talk about SABIC’s acquisition of 35% of The Golden Compass
Eng. Meshary ALALI AlDeheshi – Chairman of the Board of Directors at Rasi Investment Group, and CEO of the Golden Compass Mining Services Company: The acquisition of SABIC’s “Nusaned Fund 2” of a 35% stake in the Golden Compass Company contributes to the promotion of local mining, diversification of the company’s income sources, and diversification of investments in the mining sector, which is an emerging sector in the Kingdom.
Watch the full interview on Bloomberg:
The Mining Show – Post Event Report – 14th EDITION
Please find and download the report from the below link:
Eng. Meshary AlAli highlights the potential of the Saudi Mining Sector during his presentation at the 2022 #Mining_Show in Dubai
The Chairman of Rasi Investment Group and CEO of the Golden Compass Company, Eng. Meshary Al-Ali, gave a presentation session about the mining opportunities in the Kingdom and the important role played by the Golden Compass Company through mining services and mining consulting in light of the rapid development witnessed by the Kingdom of Saudi Arabia in the field of mining.
The Golden Compass Company signs an agreement with the Saudi Geological Survey (SGS)
The Golden Compss and MSA Group announced by the Saudi Geological Survey (SGS) as the Technical partner- Exploration Management Consultant.
The announcement was made at the Saudi-South Africa Investment Forum in Jeddah, attended by South African President Cyril Ramaphosa. The CEO of the Saudi Geological Survey Eng. Abdullah Mofter Al-Shamrani exchanged agreements with and congratulated Dr Ian Haddon, Managing Director of The MSA Group and The lead consortium Eng. Meshary ALALI AlDeheshi, CEO of Golden Compass.
The ceremony was held in the presence of the Ministerial delegation including Saudi Minister of Investment Eng. Khalid al-Falih, Minister of Tourism Ahmad al-Khateeb, Minister of Industry and Mineral Resources Bandar al-Khorayef, and Deputy Minister of Industry and Mineral Resources, HE Khalid Al Mudaifer. The South African delegation included Minister of Trade, Industry and Competition Ebrahim Patel, Minister of Mineral Resources and Energy Gwede Mantashe and Minister of Agriculture, Land Reform and Rural Development Thoko Didiza.
The contract is part of The Accelerated Exploration initiative of the National Industrial Development and Logistics Program (NIDLP) which aims to strengthen investment in the mining sector, speed up the exploration process, attract international investment and build exploration capabilities within the SGS. The MSA-GC consortium will deploy over 30 geologists to the Kingdom of Saudi Arabia, for the three-year programme duration.
As Golden compass working to improve the mining sector in Saudi Arabia and working hard to create sustainable growth on saudi mining companies by createing value chain to this resources. And build strong growth for saudi economy.
Golden Compass projects revenue of $27mln in the current financial year
As Saudi Arabia begins a new age of mining, with untapped mineral deposits valued at over $1.3 trillion, there is a need for home-grown expertise in exploration, drilling and processing.
One company that plans to tap into this is Golden Compass, a Jeddah-based mining operator launched in 2016 focused on gold, limestone, copper and silica — which is used in a range of products, from microchips to solar panels.
Golden Compass has two main revenue streams: the identification and valuation of underground resources, and the actual mining and extraction of minerals.
Founder and chief executive Meshary Al-Ali began his mining career with a stint in Australia, before spending nine years at Saudi Arabia’s Ma’aden — the largest miner in the Gulf region — where he was ultimately promoted to senior project engineer.
Al-Ali said he resigned from Ma’aden to establish a startup that will “be the biggest mining consulting and services company in Saudi Arabia in the first phase, and in the Middle East in the second phase.”
Beginning with a small team of geologists and mining engineers, Golden Compass has expanded to 120 staff.
Its first successful investment round came in 2018, bringing in the Saudi venture capital firm Naif Al Rajhi Investment Group. The size of that deal remains confidential, but it gave NRI a majority shareholding, and shortly afterwards, NRI injected a further SR20 million ($5.3 million).
In 2020, 10 percent of Golden Compass was bought by Saud Al Rajhi Investment Group (NRI and Saud are both part of the Al Rajhi banking dynasty) for SR7 million, valuing the company at SR70 million.
A third investment round is currently being finalized, the details of which are again confidential, with an Initial Public Offering slated for 2028.
Al-Ali told Arab News that the need for such levels of investment stems from the amount of equipment required in the mining sector.
“The big mining companies don’t necessarily want to invest their capital in rigs and drills and bulldozers, which are expensive, and which also depreciate quickly,” Al-Ali said.
He added: “If you are a multinational mining company that wins a concession for a gold or copper mine in Saudi Arabia, you will usually not run it yourself.
“You’ll contract that out to a certified operator specializing in exploration, resource and reserve estimation and core cutting — and with its own fleet of rigs, bulldozers, drills, processing facilities, laboratories, and of course manpower. And all of that requires huge capital investment — over SR 50 million so far, in our case.
“We carry out exploring, surveying, blasting, extracting, drilling — the entire circle of operations. We’ve become a one-stop shop of services for mining companies.”
The company is on a rapid upward trajectory, with revenues of SR30 million in 2020, and SR27 million in 2021, a fall partly due to management changes in their primary client Ma’aden, causing a delay in the closing of a contract. However, Golden Compass projects revenue of SR100 million in the current financial year.
“Saudi Arabia’s mining sector is booming”, Al-Ali said. “This really started with the new mining code on 1 January 2021. Saudi Arabia is now marketing its mining industry to the world and wants to bring in more global players.
“How? By enacting a very solid law that will protect the investments of foreign companies and provide easy access to information and data — for example via the National Geological Database and mapping program, which is updating a lot of redundant historical information.
“International mining companies now have a very solid law to protect them, and a good business environment in a stable country with confirmed mineral reserves — and the Saudi government now supports mining companies with 70% finance. So, it’s a total package.”
Another important new initiative is Saudi Arabia’s accelerated exploration program, where the Kingdom’s Ministry of Industry and Mineral Resources seeks to “motivate and encourage small-scale exploration companies.”
Golden Compass has bid for some of those contracts and the winners will be announced later this year.
Mining has three phases. Upstream consists of exploration and extraction. Midstream is made up of processing. And downstream is the manufacture of finished products.
“Until now, over 80 percent of Saudi Arabia’s mining sector has been concentrated on upstream”, Al-Ali noted. “But the object now is for the country to be involved in the entire value chain.”
He said one way this can be achieved is by setting up factories that process the Kingdom’s abundant silica into solar panels, with the transfer of technology and knowhow, along with the potential creation of many jobs.
“Saudi Arabia needs to diversify its income over the next 20 years,” Al-Ali said. “I think that the leaders of our mining industry are on the right track, and are building a healthy and sustainable and transparent system for investors and mining companies.”