"On the production side, we currently hold the largest market share, supplying equipment and services to about 80% of the country's mines."

Yasir Hamed

DIVISION MANAGER – MINING & INFRASTRUCTURE SOLUTIONS (MIS), BIN SHEHAB CO FOR TRADING & CONTRACTING

November 15, 2024

How have Bin Shehab's activities evolved in Saudi Arabia's mining industry?

Bin Shehab started out in 1975 as a contracting company focused on drilling and blasting, which gave us strong roots in the mining world even though we were primarily involved in the construction segment.  Over time, we diversified, launching a trading division, which is our main focus today. In the late 80s, we made a big move into supplying rock drilling tools. A significant turning point came in 2018 when we became Epiroc's partner in Saudi Arabia after the split from Atlas Copco.  

Along with Epiroc, we also work with several European companies, mainly from Sweden, giving us diverse offerings. One standout partner is Brokk, a leader in robotics, which we believe will see significant growth in the coming years thanks to ongoing innovations.

Our headquarters are in Riyadh, and we provide services to the central region from there. In Jeddah, we cover the western region, which houses our main service center. In the north, we operate out of Tabuk. For the southern region, we have a branch in Khamis Mushait, and our Dammam office covers the eastern part of the kingdom.

Who are Bin Shehab’s main clients?

We have been working with Ma'aden for quite some time, along with other new players entering the Saudi mining market. On the production side, we currently hold the largest market share, supplying equipment and services to about 80% of the country's mines. Big names like Ma'aden and AMAK depend on us for their operations. Still, we also partner with major contractors like Al Haytham Mining Company (AGC) and others to help push the industry forward. 

In the past two years, we have seen a significant surge in the mining industry, heavily focused on exploration. Although we work on production, our current priority is exploration, which is already evident in our performance, with consistent year-on-year growth. As such, we collaborate with most of the contractors in this area, from local drilling and exploration companies to international firms. 

How has the mining market shifted under the 2030 Vision?

While the mining sector has long been dominated by local players, a wave of international companies is entering the kingdom and partnering with local firms through joint ventures, creating a win-win situation. We are in an exciting time for Saudi Arabia's mining industry, driven by rapid growth that brings both opportunities and challenges. The main challenge is keeping pace with this fast-moving environment while expanding our operations to ensure we continue delivering the high level of support and service our customers expect.

Why is it crucial to have a local partner in Saudi Arabia?

Customers invest significantly in our machinery, and they expect to see a solid return on that investment. To facilitate this, we provide regular maintenance visits—ranging from every few weeks to constant on-site supervision. In the mining industry, clients prioritize on-site maintenance by service technicians over the location of service centers because maintenance often occurs directly on-site.
This localized support differentiates us from other international brands that may not have a comprehensive presence in the kingdom. 

Are clients seeking more cutting-edge technology solutions?

Contractors are increasingly seeking smarter, more automated machines. Where the focus used to be on basic, manual equipment, customers are now more informed and seeking innovative solutions that require less operator intervention and offer enhanced digital control.

That said, we are not yet at the level of full autonomy seen in more advanced mining markets. This is mainly due to the current infrastructure lacking the connectivity and specific conditions needed for fully electric and autonomous machines. However, we are in a transition, moving toward more intelligent solutions that align with the needs of modern mining.

What are Bin Shehab's goals for the following years in the region?

We have exciting expansion plans, starting with the Cooperation Council for the Arab States of the Gulf (GCC) region, where we want to establish our presence. After that, we will evaluate further development opportunities. Despite the rise of joint ventures in KSA, many local firms still struggle in Saudi's mining industry. As such, we are exploring ways to establish contracts or support mechanisms that will strengthen the presence of local entities in this industry.

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