What is Moxico Resources’ history and footprint?

Moxico Resources is a company focused on exploration, development and operations. Since 2016, we have been building our portfolio in Zambia, acquiring several assets and bringing the Mimbula copper mine from the exploration phase to production. We are currently ramping up operations to produce 60,000 t/y of copper cathode, with several other properties in Zambia, including the Kalengwa copper project, also progressing from exploration to production.

When Saudi Arabia made mining a pillar of its Vision 2030, at Moxico, we saw a unique opportunity to expand, especially under new reforms introduced to encourage mining investment. As the Kingdom’s largest mineral exploration site, we were confident that the Khnaiguiyah project had significant potential and would play a crucial role in achieving Saudi’s strategic vision. We partnered with Ajlan & Bros and put considerable effort into our proposal, with a lot of focus on the project’s environmental and social aspects. We were one of three bidders accepted in the final stage of the bidding process and, in September 2022, we won the bid for the Khnaiguiyah exploration licenses.

More recently in October 2024, Moxico Resources executed an investment to earn up to a 100% interest in two copper exploration assets forming the Esperanza project in the Province of San Juan in Argentina. Similarly to Saudi Arabia, Argentina has adopted reforms that include incentive programs to help unlock the country’s mining potential. What factors influenced the decision to expand into Saudi Arabia?

The Arabian Shield caught our attention, especially after reviewing the historical data and seeing the potential in the region’s mineral wealth. As importantly, the transparent bidding process reassured us of Saudi Arabia’s commitment to building a sustainable and competitive mining sector, making the opportunity even more appealing. We are not entirely jurisdiction agnostic a robust local legal framework and promising geology must go hand in hand.

Finding the right local partner was essential. Ajlan & Bros stood out not only for their well-established reputation but also because they shared our interest in aligning with Vision 2030 as a driving force in the mining industry. As such, we established a 50/50 joint venture combining Moxico’s technically driven approach with Ajlan’s deeprooted local expertise and cultural strength. How have you advanced Khnaiguiyah, and when do you expect to begin constructing its plant?

We recognized right away that the Khnaiguiyah area had promising occurrences of zinc, copper and manganese, which the geological mapping and analysis we conducted confirmed. What stood out was the potential for both brownfield and greenfield exploration, providing a clear path for development while also allowing room to uncover new resources. Additionally, we conducted extensive drilling to confirm the first phase of our resources and reserves at Khnaiguiyah and completed a bankable feasibility study.

To date, Moxico Ajlan & Bros Mining has invested in excess of US$100 million in the Khnaiguiyah project. As we prepare to initiate the construction phase, we are in advanced discussions with the Saudi Industrial Development Fund (SIDF) to secure the final funding package. We are just awaiting the final signoffs from the expert panel advising the SIDF, with expectations to close this financing in the first half of 2025. Once the full financing package has been secured, we will move into construction of the main plant a zinc and copper concentrator that will produce concentrates for both metals. Concurrently, we continue to advance our plans for early exploitation of the manganese deposits at Khnaiguiyah and are on track to operationalize the manganese plant in the first quarter of 2025, funded entirely by Moxico and Ajlan, to supply the Saudi ferro-manganese industry. We are moving very fast; we promised the Government we would, and we have. How does Moxico’s strategy and Khnaiguiyah fit under Vision 2030?

KSA is diversifying into other key minerals like lithium for the automotive industry, and the program’s main goal is to boost self-sufficiency in critical mineral supplies. This strategy aligns perfectly with Khnaiguiyah’s zinc, copper, and manganese production.

KSA currently imports large quantities of these metals, so establishing a local production base will strengthen the domestic supply chain and supports Vision 2030’s goals. We are also conducting a feasibility study for a zinc smelter to process material from the Khnaiguiyah project.