The Khnaiguiyah zinc-copper project, located 170 kilometres southwest of Riyadh in Saudi Arabia, is the Kingdom’s largest mine exploration site, covering approximately 354 km². It forms part of the Arabian Shield which is known to have 35 mineralised belts that host deposits and occurrences of gold, zinc, copper, nickel and other metals.

According to the Saudi Ministry of Industry and Mineral Resources, based on data from the Saudi Geological Survey, the Khnaiguiyah zinc-copper project has ore reserves of around 25 million tonnes, with grades of 4.11% zinc and 0.56% copper, and has the capability to produce 55,000 tonnes per annum of ore concentrates over a period of 12 years.

In 2022, the Ministry of Industry and Mineral Resources, in Saudi Arabia’s current drive to seek new mining investors as part of the Vision 2030 plan, put the exploration rights to the Khnaiguiyah project, consisting of four inter-conditional exploration licences across the site that cannot be separated, up for auction. The Khnaiguiyah project is considered critical to developing the Kingdom's zinc and copper downstream industries.

The exploration rights to the Khnaiguiyah zinc-copper project are valid for a period of up to 15 years in total with a maximum five-year initial term, plus one or more renewal periods of not more than five years each. Exploitation licences in Saudi Arabia are typically issued with a duration limitation of 60 years (inclusive of renewals and/or extensions) and an initial term of up to 30 years.

Moxico formed a 50:50 owned consortium with Ajlan Bros & Holding Company to bid for the mineral rights to the Khnaiguiyah project. Six bidders made detailed submissions, following which the Ministry of Industry and Mineral Resources of Saudi Arabia invited the top three bidders only to participate in a multi-round auction. The multi-round auction process was streamed live on YouTube in order to maintain transparency and ensure a completely unbiased process. In September 2022, Saudi Arabia’s Ministry of Industry and Mineral Resources announced that the UK-Saudi consortium of Moxico and Ajlan emerged as the winner of the auction process.

On 11 January 2023, a ceremony was held in Riyadh in the Kingdom of Saudi Arabia at the Future Minerals Forum during which the mineral rights to the Khnaiguiyah project were formally handed over by the Government of Saudi Arabia to Moxico and Ajlan.

The Khnaiguiyah zinc-copper project has previously had advanced evaluation work undertaken on it, including a definitive feasibility study, covering 100,000 metres drilled and a 3D geological model. Metallurgical sample drilling undertaken by Moxico and Ajlan within the licence area has confirmed mineral prospectivity.

The Bankable Feasibility Study is targeted for completion by the end of 2023 and the final investment decision for the beginning of the second quarter of 2024. A manganese deposit has also been identified within the licence area and potential for early manganese exploitation is being considered.