The Ministry of Industry and Mineral Resources issued 71 new mining licenses during July 2023, including 45 exploration licenses, 21 building materials quarry licenses, and five small mine and exploitation licenses, according to a report issued by the ministry's National Industrial Information Center.

The report said that the number of active mining licenses by the end of July 2023 amounted to 2,348. In the lead are building materials quarry licenses, numbering 1,453, followed by 651 exploration licenses, 182 small mine and exploitation licenses, 37 reconnaissance licenses, and 25 surplus mineral ores licenses.

Of the total active mining licenses, the largest number has been awarded to projects within the Riyadh region, a total of 610, followed by 384 in the Makkah region, 380 in the Eastern region, 265 in the Madinah region, and 191 in the Asir region. Other regions that have been granted licenses are Tabuk, 150, Qassim, 84, Jazan, 75, Hail, 59, Najran, 59, Al-Baha, 37, the Northern Borders, 28, and Al-Jouf, 26.

Saudi Arabia's Mining Investment Law offers six types of mining licenses, such as reconnaissance license, which includes all types of minerals for a period of two years that can be extended, a license to explore all types of minerals for a period of 5 years for minerals of two categories, A and B, a license for minerals listed in category C, for a period of one year, and a general purpose license linked to a mining or small mine license.

The law also specifies exploitation licenses, which include: a license for mining minerals in two categories, A and B, for a period of up to 30 years, subject to renewal or extension, a license for a small mine for minerals of two categories, A and B, for a period of no more than 20 years, and building materials quarry license for minerals of category C, for a period of up to 10 years that can be extended.

The law also includes a license for “surplus mineral ores on project sites or privately owned lands”.

The Ministry of Industry and Mineral Resources aims to develop the mining sector in line with the objectives of the Kingdom's Vision 2030 and the National Industry Development and Logistics Program, with the goal of making mining the third pillar of the national industry. With mineral resources estimated to be worth around SAR5 trillion, there is great potential for the sector to contribute significantly to the country's economy.

For more information on the Kingdom’s mining licensing procedures visit mim.gov.sa.

Source: Saudi Press Agency