Posted on 01 Sep 2023
Saudi Arabia is nurturing the development of a mining sector with the goal of making it the third pillar of its national industry, with 71 new licences issued in July, Kallanish learns.
According to the country’s industry and mineral resources ministry, 45 of the new licences were for exploration, 21 for building materials quarry licences and 5 small mine and exploitation licences. To date, the ministry has issued 2,348 licences.
Despite most of the existing licences being related to building materials quarries, Saudi officials estimate its mineral resources to be worth around SAR 5 trillion ($1.33 trillion) thanks to abundant energy transition minerals and metals. It is unclear if the figures include oil and gas, but the country also has major sources of copper, manganese and rare earths, among other minerals.
“There is great potential for the sector to contribute significantly to the country’s economy,” the ministry says in a statement.
The Saudi mining investment law offers six types of licences. These include a two-year reconnaissance licence for all types of minerals, which can be extended, and a five-year exploration licence for two minerals categories. A general purpose licence linked to a mining or small mine licence is usually valid for one year.
Yet, a mining licence for minerals in categories A and B offers developers up to 30 years, subject to renewal or extension. Small mining operations can run for around 20 years, while building materials quarry licences are valid for up to 10 years.
According to the ministry’s latest report, of the active mining licences, the largest number has been awarded to projects within the Riyadh province, followed by the Makkah region and the eastern region. It did not specify the type of minerals in these licences.
The Middle Eastern nation is working to become a clean energy centre in the region, attracting investments in green hydrogen, mining, battery materials processing and electric vehicle manufacturing.
Source:Kallanish
