Mining sector could see ‘big leap’, incentives needed to lure investments: Official

Saleh Al-Shabnan, CEO of Saudi Mining Services Co. (SMSC)

The mining sector is expected to witness a significant leap over the coming period, Saleh Al-Shabnan, CEO of Saudi Mining Services Co. (SMSC), told Argaam on the sidelines of Future Minerals Summit held last week in Riyadh.

He added that SMSC participated with the Ministry of Industry and Mineral Resources in launching several initiatives that brought up many investment opportunities for local and international companies in the sector and enabled the ministry’s agencies to provide a full range of services.

SMSC, which is fully-owned by the state and operates under the umbrella of the Ministry of Industry, aims to provide services for the mining sector in three main areas, namely control, issuance of licenses and attraction of local and international investments.

The attraction of investments requires a good environment in terms of control, licenses, quality of services, and transparency, in addition to the facilities provided by the state to investors to boost the attractiveness of the sector and the existence of a distinguished infrastructure in the Kingdom, the top executive said.

He added that the facilities that the company will provide include framed, referenced, and unified control so that only licensees can work in the sector, which means valid licenses in specific areas.

The control will not include punitive procedures, but rather ensure financial, environmental and societal compliance, as well as correct the status of violators so that they can continue to work in the sector and contribute to its development and prosperity.

Al-Shabnan added that after launching the mining portal and re-engineering the procedures, all mining licenses will be accelerated, which will enable the local mining and investment environment to become more attractive and transparent.

SMSC will operate and develop the mining portal, to become an enabler for all dealers in the mining sector, whether they are investors, service providers or legislative bodies, to receive all services, numbers, information, and data.

Touching on the expansion of the company's services, Al-Shabnan said SMSC was mainly launched to provide the services that were offered by the Ministry of Industry to the sector.

"We are currently working to use topnotch technologies, including artificial intelligence (AI), satellites and drones to support control and licensing services," he said, adding that there is a possibility of providing these services to the other government sectors and the private sector commercially later.

The mining services provider does not target profitability, and the ministry mainly aims to provide quality services and faster procedures, as well as stimulate the sector, and preserve the state's rights to exploit national wealth by workers in the sector.

In April 2020, the Saudi Cabinet gave the green light for establishing SMSC, according to data available with Argaam.