KSA Promote 6-Type of Mining License to

Saudi Ministry of Industry and Mineral Resources said on Sunday, that the Mining Investment Law and its executive regulations have set out six types of mining licenses, aimed at stimulating investment in the mineral resources sector, in the Kingdom.

The executive regulations would help achieve the sector’s governance, enhanced transparency and increased investor confidence in the sector, as well as the sustainability components of the sector.

The mining investment law attaches great importance to environmental protection and occupational health and safety.

Thus, one of the most important requirements for obtaining a mining license is having the environmental impact study.

The license include a reconnaissance license that shall include all types of mineral for a period of two renewable years.

An exploration license for all types of mineral for a period of five years for minerals of class A and B, and one year for minerals of class C, while exploration licenses for mineral class A and B may be renewed.

A general purpose license that shall be associated with the mining license or the small mine.

In addition to exploitation licenses compromise of mining licenses include: Class A and B mineral mining license for a period not exceeding 30 years, such license may be renewed or extended for an additional period or periods

A small mine license class for A and B mineral for a term not exceeding 20 years.

A building materials quarry license for class C metals, for a period not exceeding ten years and may be extended or renewed.

“The mining investment law under its executive regulations contributes to the development and exploration of investment opportunities in the Kingdom’s mining sector, becoming the third pillar of Saudi industry and the qualitative source of income in the national economy.” The Ministry explained.

The mining investment law would also contribute to the development of non-oil revenues, in addition to maximizing the value of the Kingdom’s natural mineral resources, through the optimal exploitation of mineral resource, in order to make the sector attractive to investment.

Local community development is a top priority, in the executive regulations of the mining investment law, which obliges mining licensing applicants to submit a social impact study on their projects showing the contribution to the development of the areas adjacent to the mining projects.