Ministry issues 20 new mining licenses in Feb 2024

The Ministry of Industry and Mineral Resources issued 20 new mining licenses during February 2024, including 9 licenses for building material quarries, 6 licenses for surplus mineral services, and 5 exploration licenses, according to the report of the National Center for Industrial and Mining Information affiliated with the Ministry.

The report indicated that the total number of active mining licenses in the sector by the end of February reached 2,457 licenses, led by building material quarry licenses with 1,581 licenses, followed by prospecting licenses with 611 licenses, small mining and extraction licenses with 195 licenses, exploration licenses with 42 licenses, and surplus mineral licenses with 28 licenses.

The Mining Investment Law and its executive regulations define six types of mining licenses, including:

Exploration licenses covering all types of minerals for two years, extendable.

Prospecting licenses for all types of minerals for 5 years for categories (A) and (B), and 1 year for category (C) minerals.

General-purpose licenses linked to mining or small mine licenses.

The law also defines exploitation licenses, including:

Mining licenses for category (A) and (B) minerals, with a term not exceeding 30 years, renewable or extendable.

Small mine licenses for category (A) and (B) minerals, valid for up to 20 years.

Building material quarry licenses for category (C) minerals, valid for up to 10 years, extendable.

Surplus mineral licenses for project sites or privately owned land.

The Ministry of Industry and Mineral Resources seeks to protect and maximize the value of the mining sector in line with Saudi Arabia’s Vision 2030 and the National Industrial Development and Logistics Program. The goal is to make mining the third pillar of the national industry and to utilize the Kingdom’s mineral wealth, which is spread across more than 5,300 sites and estimated to be worth approximately SAR 9.3 trillion.