Saudi Arabia’s Ongoing Development in the Mining Sector
In a significant stride towards enhancing the mining industry, the Ministry of Industry and Mineral Resources of Saudi Arabia announced the issuance of 21 new mining licenses in April 2025. This initiative aims to bolster the sector and diversify the national economy’s income sources.
According to Jirah bin Mohammed Al-Jurah, the ministry’s spokesperson, the newly granted licenses comprise 11 permits for construction materials quarries, 8 exploration licenses, and two licenses for small-scale mining and exploitation. These details were outlined in the monthly report from the National Center for Industrial and Mining Information, which provides insights into key mining indicators.
As of the end of March 2025, the total count of active mining licenses in the Kingdom stands at 2,447. Among these, construction materials quarry licenses dominate with 1,480 permits. Following them are exploration licenses, totaling 671, and small-scale mining licenses, with 225 registered. Additionally, there are 52 exploration licenses and 19 permits for surplus mineral resources.
The current mining investment framework and its regulations delineate six types of mining licenses. Among them are exploration licenses, which cover all kinds of minerals for a duration of two years, with the possibility of extension. There are also licenses for the exploration of various mineral types that extend for five years for minerals classified under categories A and B, and a one-year license for category C minerals. Furthermore, a general-purpose license is associated with a mining or small-scale mining operation.
Al-Jurah further elaborated that the system grants exploitation licenses that are specific to minerals of categories A and B, with a maximum validity of 30 years, available for renewal. Additionally, small mining licenses for A and B category minerals are valid for up to 20 years. There are also quarry licenses for category C minerals, which can be issued for a period of up to 10 years, also subject to extension.
The regulation encompasses surplus mineral resource licenses applicable at project sites or on privately owned lands, indicating a comprehensive approach to managing mining resources in the Kingdom.
These developments reflect Saudi Arabia’s commitment to fortifying its mining sector, which is a critical component of the country’s economic diversification strategy. The government’s proactive measures are designed to attract investment, enhance productivity, and ensure sustainable exploitation of the nation’s rich mineral resources.
The mining industry is increasingly seen as a frontier for growth within Saudi Arabia’s Vision 2030 framework, aimed at reducing dependency on oil revenues and fostering a more resilient economy. By streamlining the licensing process and expanding access to resources, the ministry is not only supporting existing mining activities but also encouraging new projects that can stimulate job creation and technological advancements.
The issuance of these new mining licenses signifies a thoughtful approach to balancing resource extraction with environmental and economic considerations. This effort aligns with global trends emphasizing sustainable development, as the Kingdom seeks to position itself as a leader in responsible mining practices.
As the ministry continues to enhance regulatory frameworks and encourages collaboration between public and private sectors, the outlook for the mining industry in Saudi Arabia appears promising. The increased licensing activity is expected to attract both local and international investments, fostering innovation and driving forward the Kingdom’s ambitions to become a significant player in the global mining sector.
In conclusion, the issuance of 21 new mining licenses is just a part of a broader strategy by the Saudi government to develop the mining sector. Through these efforts, the Kingdom is taking substantial steps to diversify its economy, ensure sustainable environmental practices, and reinforce its status as a key player in the mining industry, aligning with the strategic goals set forth in Vision 2030.
