The Ministry of Industry and Mineral Resources issued 27 new mining licenses during March 2023, including 13 building materials quarry licenses, six exploration licenses, and five excess mineral ores license, two reconnaissance licenses, and one small mine exploitation license, according to the report of the Ministry’s National Industrial Information Center.
The report mentioned the amount of active mining licenses in the sector by the end of March 2023 amounted to 2,314. Taking the lead are quarry licenses for building materials with 1,451 licenses, followed by 609 exploration licenses, 180 small mine exploitation license, 42 reconnaissance licenses, and 32 excess mineral ores licenses.
Of the total active mining licenses, the largest number have been awarded to projects within the province of Riyadh with a total of 570 licences, followed by 384 licenses in the eastern region, 379 licences in the Makkah region, 258 licenses in the Madinah region, and 190 licences in the Asir region. Other regions to have been granted licenses include Tabuk 144, Qassim 93, Jazan 81, Hail 69, Najran 55, Al-Baha region 38, the Northern Borders 27, and Al-Jouf 26.
Saudi Arabia’s Mining Investment Law offers six types of mining licenses such as, a reconnaissance license, which includes all types of minerals for a period of two years that can be extended, and a license to explore all types of minerals for a period of 5 years for minerals of the two categories (A) and (B), and a license for minerals listed in category (c) For a period of one year, a general purpose license linked to a mining or small mine license.
The Law also specified exploitation licenses, which include: a mining license for minerals of two categories (A) and (B), with a license period up to 30 years, subject to renewal or extension, and a license for a small mine for minerals of two categories (A) and (B), the duration of which is no more than 20 years, and the building materials quarry license for minerals of category (C) with a license period of up to 10 years that can be extended. The Law also includes a license for “surplus mineral ores in 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 5 trillion riyals, there is great potential for the sector to contribute significantly to the country’s economy.
