Saudi mining sector undergoing major changes to make it third pillar of industry, says minister

The mining sector in Saudi Arabia is witnessing major changes to achieve one of the most important goals of Vision 2030, which is to diversify the resources of the national economy and make it the third pillar of the local industry, along with oil and petrochemical industries, Al Eqtisadiah newspaper quoted Khalid Al-Mudaifer, vice minister of industry and mineral resources for mining affairs, as saying.

The ministry is working to complete the drafting of the executive regulations for the mining system to be ready for implementation, with the system coming into effect next January, Al-Mudaifer added.

The Mining Investment Law has undergone a comprehensive review to enhance its role as a legal framework that supports transparency, sustainability, and business facilitation in the sector, the vice minister also said.

The executive regulations of the Mining Investment Law have paid great attention to the employment of Saudi citizens and the development of national competencies in mining projects, in addition to developing communities near mining sites, and preserving the environment.

He emphasized that the Kingdom has one of the lowest ceiling in terms of mining licenses fees in the world, indicating that there is an opportunity to restructure the financial compensation, as part of the sector restructuring, in a way that contributes to the development and sustainability of the sector, without exceeding international rates and losing the Kingdom’s competitive advantage being one of the lowest in terms of fees.