The Ministry of Industry and Mineral Resources issued 32 new mining licenses last July, including 16 exploration licenses, 10 building materials quarry licenses, 3 surplus mineral ore licenses, and 3 small-scale mining and quarry exploitation licenses, according to a report by the ministry’s National Center for Industrial and Mining Information.
The official spokesperson for the Ministry of Industry and Mineral Resources, Jarah bin Mohammed Al-Jarrah, stated that the total number of mining licenses in effect in the sector as of the end of July was 2,281, led by construction materials quarry licenses with 1,463, followed by exploration licenses with 556, then mining exploitation and small-scale mining licenses with 201, exploration licenses with 41, and surplus mineral ore licenses with 20.
Al-Jarrah explained that the Mining Investment Law and its implementing regulations define six types of mining licenses, including: an exploration license, which covers all types of minerals for a two-year period, renewable; an exploration license for all types of minerals valid for five years for minerals in Categories (A) and (B), a license for Category (C) minerals valid for one year, and a general-purpose license linked to a mining license or small-scale mine license.
The regulations also specify exploitation licenses, which include: a mining license for minerals in Categories (A) and (B), with a term not exceeding 30 years, renewable or extendable; a small-scale mining license for minerals in Categories (A) and (B), with a term not exceeding 20 years, and a construction materials quarry license designated for Category (C) minerals, with a license term of up to 10 years, subject to extension. The regulation also includes a license for “surplus mineral ores at project sites or on privately owned land.”
He emphasized that the Ministry of Industry and Mineral Resources seeks to protect the mining sector and maximize its value in line with the objectives of the Kingdom’s Vision 2030 and the National Industry and Logistics Development Program; to transform mining into the third pillar of the national industry, and to work toward exploiting the Kingdom’s mineral resources, which are spread across more than 5,300 sites and are estimated to be worth approximately 9.3 trillion riyals.
