Mining

Investment Law
 Law Contents
Part 1
Definitions and Preliminary Provisions
Part 2
Exempted and Non-exempted Lands and Areas
Part 3
Licensing General Provisions
Part 1
Part 4
Rights and Obligations Definitions and
Part 5 Preliminary Provisions
License Rights
Part 6
Financial Provisions
Part 7
Violations and Penalties
Part 8
General Provisions

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 Class B: Non-metallic minerals, industrial minerals, and raw materials, as classified in the
Article 1 Regulations; and
In this Law, the following terms and phrases shall have the meanings assigned thereto, unless Class C: Materials used for construction purposes, as classified in the Regulations.
the context requires otherwise: Mineral Formations: Natural geological forms and structures in which ores or minerals may be found.
Law: The Mining Investment Law. Evaporites: Materials extracted or resulting from the evaporation of water.
Ministry: The Ministry of Industry and Mineral Resources. Mine: A location from which useful minerals or ores are extracted, whether from the surface or
SGS: The Saudi Geological Survey. subsurface, or from seawater or natural water bodies from which evaporites are extracted.
Minister: The Minister of Industry and Mineral Resources. Small Mine: A mine the area of which does not exceed one square kilometer and is classified as
Regulations: The Implementing Regulations of this Law. such by the Ministry according to the volume of its mineral deposit, production of ore, and capital
Mining Activity: Any operation carried out on deposits by means of reconnaissance, exploration, investments.
exploitation, processing, refinement, or any other mining-related activities. Quarry: Surface mine site located in mountains or the ground where rocks, minerals, or ores are
Mining Sector: The Ministry, SGS, companies established by the Ministry or by SGS, and other extracted.
mining-related entities. Processing: Refining ores, removing impurities, or increasing concentrate.
Person: A natural or legal person. Excavation: Digging a hole or a pit of any type.
License: A document issued by the Ministry permitting a person to engage in a mining activity Polishing: Rubbing the surface of minerals or rocks to make them smooth and shiny.
within a designated area, in accordance with this Law and its Regulations. Smelting: Melting minerals by heat or by any other means for refining and processing purposes.
Qualified Person: A person who meets the requirements for obtaining a license in accordance with Concentrate: The percentage of a mineral in a product.
this Law and its Regulations. Rocks: Natural earth substances which exist in solid form and which are generally composed of a
Licensee: A person who is granted a license under this Law and its Regulations. metamorphic mineral assemblage that consists of one or more minerals.
License Site: A location the geographic coordinates of which are delineated in the license. Gravel: Small stones ranging between 2mm and 75mm in diameter.
Transfer: Transfer of a license from a licensee to a qualified person. Sand: A substance of less than 2mm in diameter which results from disintegration, weathering, or
Reconnaissance: A preliminary geological survey which, prior to carrying out exploration activities, is erosion of components of the Earth’s crust.
conducted for the identification of geological environment and surface evidence of minerals and ores. Layer: A subsurface layer with consistent characteristics distinguishing it from other layers.
Exploration: An extensive search for deposits conducted on any site using geological, geophysical, Mineral Reserve Area: An area which contains quantities of ores or minerals found at mineable
or geochemical methods, or digging, or any other appropriate method to determine the presence of sites whose economic viability is geologically established or projected by the volume of mineral
such deposits, their extent, quantity, quality, and mining viability. formations.
Exploitation: The process of extracting ores and minerals, by mining or quarrying, including any Mining Complex: Lands which are designated for mining activities.
direct or indirect activity required to achieve this purpose. Public Utilities: Lands which are designated for road networks, streets, public railways, airports,
Mining: The process of extracting useful ores or mineral formations from the Earth or maritime ports, oil and gas pipelines, and energy projects or for approved water projects.
areas, or evaporites which result from the evaporation of seawater or natural water bodies, including National Geological Database: A digital database that contains the geological, geochemical,
any direct or indirect mining activity required for such purpose. geophysical, topographic, and geographic data of the State, as well as the results of survey studies
Deposits: Naturally occurring minerals or ores which exist in economically viable quantities. and exploration activities, and information on licenses, mining reserve areas, and mining complexes.
Ores: Natural accumulations of one or more minerals at a specific location, which make them Reclamation: Actions that a licensee is required to carry out upon completion of all activities on a
economically viable. license site to restore it to its natural condition, in accordance with the laws.
Minerals: Inorganic metallic or non-metallic compounds with distinctive chemical compositions Closure: Actions that a licensee is required to carry out to close down a license site upon completion
and physical properties, classified as follows: of any activity therein and reclamation of such site.
Class A: Metallic minerals, precious and semi-precious stones, and ores that require advanced Hydrocarbons: Conventional or non-conventional Hydrogen and carbon compounds which exist
operations and concentration as classified in the Regulations; in their liquid or gaseous state, such as crude oil, shut-in oil, shale oil, condensates, natural gas, shale

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 gas, methane hydrates, natural tar, and bitumen, which are extracted or mined from the surface or 9) Coordinating with the SGS in:
subsurface. a) designating mineral reserve areas;
Hazardous Waste: Solid, liquid, gaseous, or radioactive waste which contains materials detrimental b) developing and updating the National Geological Database; and
to humans or the environment and which results from mining activities. c) providing the maps, survey data, and studies necessary for mineral investment.
Surface Rental: A payment made by a licensee as rent for the land covered by the license. 10) Coordinating with relevant agencies to provide the infrastructure facilities necessary for
Maritime Areas: The maritime areas under the Law of the Maritime Areas of the Kingdom of Saudi mining areas, including roads, railways, ports, power plants, and power and water supply lines.
Arabia. 11) Cooperating with relevant agencies in monitoring mining sites.
Control: The direct or indirect influence a person may have on another person’s actions and 12) Monitoring occupational health and safety measures that a licensee is required to comply
decisions. with.
13) Coordinating with the Ministry of Interior to implement its mining- related security, safety,
Article 2 and fire protection instructions.
14) Overseeing the licensee’s activities.
1) All surface or subsurface deposits, including ores of all types and of all forms and compositions, 15) Determining the content and form of any study, report, or directive requested in accordance
shall be deemed the property of the State and may not be claimed by a third party through with this Law or its Regulations.
lapse of time. This shall include the State’s land territory and maritime areas. 16) Setting and updating development plans and programs for the mining sector and monitoring
2) Ownership of minerals and ores covered by an exploitation license shall, in accordance with their implementation.
this Law, transfer to the licensee upon their extraction from the license site during the validity 17) Identifying the ores, minerals, and elements that may not be developed, are reserved for future
of the license. exploration or exploitation, or are subject to special regulation.
18) Qualifying specialized companies and firms to ensure compliance and detect violations, as
Article 3 prescribed by the Regulations.

Without prejudice to the powers of relevant agencies, the Ministry shall be in charge of the Article 4
application of this Law and overseeing its implementation. For this purpose, it may, inter alia,
undertake the following: The Ministry shall establish the following registries:
1) Issuing regulations and instructions, designating forms, and setting procedures necessary for 1) Application Registry: to register license applications filed with the Ministry.
the implementation of this Law. 2) License Registry: to register issued licenses and any action taken thereon, including renewal,
2) Setting policies for the mining sector and overseeing their implementation. amendment, transfer, extension, liens, termination, and expiration as well as any action
3) Designating the lands and maritime areas over which licenses may be granted under this Law, affecting such licenses.
in coordination with the Ministry of Energy in matters falling within its jurisdiction. 3) Mineral Zone Registry: to register the particulars of mineral zones, including mining complexes
4) Determining surface rentals and fees for licenses and services provided by the Ministry, in and mineral reserve areas.
accordance with this Law and its Regulations. The Ministry shall, in coordination with SGS, make the registries accessible to the public, in
5) Reviewing applications for licenses to grant rights under this Law and issuing such licenses in accordance with the Regulations.
accordance with its provisions.
6) Collecting fees and financial returns from bids, surface rentals, and fines, prescribed under this Article 5
Law.
7) Promoting research and development, planning, and investment in mining activities. Without prejudice to the provisions of Article 2, this Law shall not apply to the following:
8) Seeking to achieve a systematic expansion of a sustainable mining infrastructure and related 1) Hydrocarbon materials, deposits, or resources, excluding coal.
services. 2) Pearls, coral, and similar marine substances.

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 Article 6
1) Subject to this Law and relevant laws, mining activities may be carried out on State-owned or
privately owned lands, or on lands part of which is owned by the State and the other part is
privately owned, or in maritime areas.
2) The following shall be excluded from the provision of paragraph (1) of this Article:
a) Lands of holy sites.
b) Lands of military installations, or areas reserved for hydrocarbon exploration or operations,
unless the relevant minister issues a decision to lift the restriction upon the Minister’s request.
c) Lands and maritime areas excluded pursuant to a decision by the Council of Ministers.

Article 7
1) A reconnaissance license may be granted for lands and maritime areas, except for those
provided for in Article 6(2) of this Law.
2) Exploration or exploitation licenses may, upon obtaining the necessary approvals and permits
from relevant government agencies, be granted for the following lands and maritime areas:
Part 2 a) Lands of public utilities.
b) Areas designated by law as touristic sites, archaeological sites, historical sites, wildlife
reserves, pastures, forests, national parks, wildlife parks, and geological parks.
Exempted and Non- Article 8
exempted Lands and Areas The Ministry shall, upon receipt of a complete application for a license of exploration or exploitation
in lands and areas specified in Article 7 of this Law, communicate with relevant government agencies
to obtain the necessary approvals. If no objection is received from a given agency within 30 days from
the date of receipt of said communication, the application shall be deemed approved by said agency.
The applicant may, upon receiving an objection from a given agency, choose to exclude contested
lands and areas which overlap with the lands and areas stated in Article 7 and proceed with the
application within a maximum period of 30 days from the date of notification of the objection.

Article 9
Without prejudice to the provisions of Article 6 of this Law and upon coordination with relevant
agencies, the Minister may designate a land or maritime area as a mineral reserve area, and specify
prohibited activities therein for the purpose of preserving such land or maritime area for future
mining purposes.

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 Article 10
The Ministry shall notify relevant agencies if it seeks to designate a mining complex. If no objection
is received from a given agency within 30 days from the date of receipt of the notification, said
agency’s approval shall be deemed granted.

Part 3
Licensing General Provisions

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 2) An exploitation license shall include:
Article 11 a) a mining license
1) The Ministry shall set the conditions for all types of licenses, and the procedures for their b) a small mine license
issuance, renewal, extension, transfer, and amendment, as well as the procedures for c) a building materials quarry license
relinquishment of the license or part of the license site, in accordance with this Law and its d) a general purpose license
Regulations. 3) Subject to the provisions of Article 13 and in accordance with the rules specified in the
2) Applications for license issuance, renewal, extension, transfer, amendment, as well as for Regulations, a person may obtain more than one license.
relinquishment of a license or part of a license site as stipulated in this Law shall be filed with
the Ministry, as per the forms and procedures set out in the Regulations. Article 15
Article 12 An applicant may apply for a license for a specific subsurface layer; the Ministry may place restrictions
on a specific layer, in accordance with the Regulations.
The terms and conditions of any license may not be amended during its validity, except upon a
request by the licensee and the approval of the Ministry. A license may be renewed or extended Article 16
pursuant to terms and conditions the licensee agrees to, as specified in the Regulations.
Subject to relevant laws and the Regulations, an applicant must meet the license technical and
Article 13 financial requirements.

1) With the exception of a reconnaissance license, licenses provided for in this Law may be issued Article 17
only to legal persons.
2) Reconnaissance, exploration, or exploitation operations may not be carried out without a An application for the issuance, renewal, extension, or amendment of any license filed in accordance
license, except for the following entities: with this Law and its Regulations may not be rejected without a written justification. The applicant
a) SGS: it may, upon notifying the Ministry, carry out all the tasks and works set out in its may appeal such rejection before the administrative court.
Statute by itself or through a third party.
b) Relevant official agencies, universities, institutes, and national research centers: they Article 18
may, upon the Ministry›s approval, conduct scientific research relating to reconnaissance
or exploration, provided that such research is not used for commercial purposes unless Subject to Article 19 and Article 41(6), if the Ministry receives multiple license applications for
approved by the Ministry. A copy of the research findings shall be provided to the the same site, priority shall be given to the earlier filed application as registered in the Application
Ministry. Registry, provided that:
1) the requirements provided for in Article 16 are met; and
2) the license application fees are paid and other license requirements are met in accordance
Article 14 with the Regulations.
1) Licenses that grant rights under this Law are:
a) reconnaissance licenses. Article 19
b) exploration licenses.
c) exploitation licenses. The Ministry may designate lands or maritime areas the licenses for which may only be granted
through bidding, in accordance with this Law and its Regulations.

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 Article 20 Article 24
1) An exploration or exploitation license may, upon the request of a licensee, be transferred to The Ministry may issue decisions to suspend any operation or activity, or the use of any equipment
a qualified person in accordance with the Regulations. The request may not be rejected if it within a license site if such operation, activity, or equipment is detrimental to the safety, security, or
meets the conditions prescribed by this Law and its Regulations. health of the licensee’s employees or other persons, harms the environment or properties, causes
2) The license rights and obligations shall transfer to the new licensee upon the issuance of the nuisance, or causes substantial damage to any site. The Ministry shall lift the suspension upon
transfer decision. rectification of the situation.
3) Notwithstanding paragraph (1) of this Article, an exploration license may not be transferred,
directly or indirectly, within the first year of its term.
4) The transfer shall become effective after the issuance of a decision by the Ministry.
Article 25
Without prejudice to the provisions of this Law and its Regulations, a license may be terminated only
Article 21 in the following cases:
1) If the licensee defaults in the payment of amounts due to the State for more than 180 days.
Without prejudice to Article 20(3) of this Law, a licensee shall notify the Ministry of any change in 2) If the licensee provides the Ministry with substantially inaccurate information relating to his
the control thereof within 30 days of the change. activities or particulars.
3) If the licensee fails, within 60 days after receipt of a written notice, to fulfill the obligations
prescribed by this Law, its Regulations, and the terms and conditions of the license.
Article 22 4) If the licensee fails, within the period specified in the notice, to rectify the violation of which he
Subject to the provisions of Sharia and relevant laws and with the exception of the reconnaissance was notified, or if he repeats such violation.
license, a licensee may pledge the rights conferred by the license as security. Said pledge shall 5) If the licensee fails, within 180 days after receipt of the Ministry’s written notice, to take
become effective only after the pledger (licensee) notifies the Ministry of its registration in the necessary measures to preserve the environment, wildlife, archaeological sites, or tourist sites.
License Registry in accordance with the Regulations. The pledgee or his designee may enforce and If the license is terminated, the licensee or any related parties may not apply for another license for
transfer any pledged license rights upon satisfaction of the requirements of Articles 16 and 20. the same site or part thereof within three years. The Regulations shall determine the procedures for
license termination.
Article 23
Article 26
1) Data and information provided by an applicant shall be deemed confidential; if the application
is rejected, such data and information shall remain confidential for 180 days following the Without prejudice to any prior agreement with the landowner, the licensee shall, within 180 days
rejection date. from the date of termination or expiry of his license, remove any installation, plant, machinery,
2) All geological reports submitted by any licensee shall be deemed confidential if the licensee equipment, tool, tailings, mined ore, other materials, or any other movable or immovable property,
so requests; however, such reports may, without the applicant’s consent, be disclosed in the except for what the Ministry decides to leave in place for public interest. The Regulations shall
following cases: determine the necessary terms and conditions.
a) The lapse of five years from the date of receipt of the reports for valid licenses.
b) The lapse of 180 days from the expiration or termination date of the license or the partial Article 27
relinquishment of the license site. The representatives designated by the Ministry shall have the capacity of inspection officers, and
In all cases, the Ministry may dispose of the data, information, or reports in a manner not conflicting may, pursuant to this Law, access the license site for monitoring and inspection, detecting violations,
with this Law. and verifying compliance with this Law, its Regulations, and license terms and conditions. The
licensee shall cooperate and enable such representatives to fully perform their duties.

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 Article 28
Operations carried out pursuant to the licenses granted under this Law shall fall within the licensee’s
responsibility and be under his management and supervision.

Article 29
Subject to the provisions of relevant laws, the licensee must obtain the Ministry’s written approval
prior to conducting an aerial survey.

Article 30
If a force majeure event prevents, hinders, or delays the licensee’s performance of any of his
obligations within the specified time, such failure or delay shall not be deemed an act of negligence
or default. In such case, the ministry may extend the period prescribed to perform such obligations
for a period not less than the duration of the force majeure event or, if possible, grant the licensee an
alternative site according to the type of ore and license.
Part 4 In this Article, force majeure shall mean events which arise from unexpected circumstances at the
time of the issuance of the license and which are legally recognized as such; such events are not
attributed to either party and they render the licensee›s performance of his obligations under the
Rights and Obligations license impossible.

Article 31
A licensee may relinquish his license or part of the license site in accordance with the Regulations.

Article 32
Subject to the provisions of Article 2 of this Law, if the exploration or exploitation license site or
part thereof is privately owned as established by a title deed, or if a person has a legally established
usufruct thereon, the following procedures shall be carried out:
1) The licensee shall, upon request, present the license to the owner or usufructuary of the land.
The licensee may not exercise the rights granted under any type of license without an agreement
with the owner or usufructuary of the land on a fair compensation for the use of the land
and for any damage that the land may sustain as a result of the licensed operations, and shall
submit such agreement to the Ministry prior to commencement of operations on the land.

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 2) The Ministry shall, if no agreement on a fair compensation is reached between the licensee and 3) The Ministry’s approval of the reclamation and closure plan shall be made after such plan is
the owner or usufructuary of the land, apply the provisions relating to the temporary taking of approved by the competent environmental agency.
property as stipulated in the Law of Eminent Domain and Temporary Taking of Property. 4) An applicant for a mining license or a small mine license shall include in his application a
In all cases, the rights granted under the license shall be reasonably exercised towards achieving the feasibility study for the project which demonstrates its contribution to the development of
license objectives, taking into consideration the interests of the owner or usufructuary of the land. local communities within or near the license site, and its support of local content, as well as the
cost of site reclamation and closure.
Article 33 5) An applicant for an exploration license or a building materials quarry license shall include
in his application a plan for environmental impact management in line with the conditions
1) The licensee shall, subject to a permit issued by the Ministry upon the approval of the relevant and specifications set by the competent environmental agency. The applicant shall also
government agencies, have the easement rights necessary for carrying out operations under provide a social impact management plan for the activities which include contribution to the
the license on any State-owned land outside the license site, provided such rights are not in development of local communities, as specified in the Regulations.
conflict with the rights of other parties over such land.
2) If any of the required easement rights fall on a privately-owned land, as established by a title
deed or on another license site, the licensee must reach an agreement with the owner or
Article 36
usufructuary of the land, or any other licensee to acquire such rights in the manner prescribed The licensee shall preserve any archaeological sites, including buildings, engravings, inscriptions,
by law. and drawings found within the license site, and shall promptly report the same to the Ministry.
3) Without prejudice to paragraph (1) of this Article and for the purposes of enabling the
licensee to carry out his operations, easement rights shall, under this Article, include, but not Article 37
be limited to, the use of all types of roads and telecommunication lines, as well as surface
and groundwater, if no alternative water resources are available, provided such use does not 1) The holder of an exploitation license must provide a financial guarantee for reclamation and
conflict with water conservation laws and instructions. closure.
2) The Regulations shall determine the amount of the guarantee according to the nature of each
Article 34 mining activity. The guarantee and any remainder thereof may only be released after the
approval of the competent environmental agency upon verifying the licensee’s compliance
The licensee shall comply with applicable laws, orders, and decisions, as well as with this Law and with the reclamation plan.
its Regulations.

Article 35
1) An applicant for a mining license, a small mine license, or a general purpose license shall
include in his application an environmental and social impact assessment and a plan for site
reclamation and closure as specified in the Regulations. The applicant shall, pursuant to the
license and in accordance with the Regulations, take the measures necessary to preserve and
protect water resources, the environment, and wildlife against hazardous waste or any other
environmental damage.
2) The competent environmental agency in the Kingdom shall render a decision on the
environmental impact assessment within 60 days from receipt thereof. The Minister may
extend said period for certain mining activities.

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 Article 38
The Ministry shall issue a reconnaissance license for a period not exceeding two years for an area
designated by the applicant. Said license may be extended or renewed for a single additional period
not exceeding two years. The Regulations shall determine the license terms and conditions.

Article 39
A reconnaissance license shall entitle the licensee to survey and explore the site designated in the
license. The licensee shall have a non-exclusive right over the license site to:
1) examine the deposits covered by the license and collect samples;
2) prospect the area covered by the license, except for areas excluded under this Law;
3) use geophysical and geochemical methods, as well as other scientific methods;
4) carry out any other reconnaissance activity commonly used in the preliminary examination of
lands with potential minerals or ores;
5) have access to non-confidential maps and data maintained by the Ministry; and
6) any other rights stipulated by the Regulations.
Part 5 The license shall not entitle the licensee to carry out any type of digging, construct any permanent
installations, produce minerals for use or sale, use explosives, or damage or remove any vegetation
License Rights cover, nor shall it confer upon him priority or any other right to obtain another license. The Ministry
may grant a holder of a reconnaissance license or any other party any other license over the same
area or part thereof. Nevertheless, a license granting exclusive rights over certain areas shall exclude
such areas from any reconnaissance license without liability to the Ministry. The reconnaissance
license shall not entitle the licensee to enter private land without obtaining the consent of its owner
or usufructuary according to terms they agree upon.

Article 40
The Ministry shall issue exploration licenses and shall determine their area, term, and manner of
renewal according to the following conditions:
1) For Class “A” and Class “B” minerals, the site area shall not exceed 100 square kilometers; the
license term shall not exceed five years; and the license may be renewed for multiple terms,
provided that each term does not exceed five years and the total terms do not exceed 15 years,
as specified in the Regulations.
2) For Class “C” minerals, the site area shall not exceed five square kilometers; the license shall
not be renewed; and the license term shall not exceed one year, as specified in the Regulations.

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 Article 41 Article 43
An exploration license shall grant the licensee the following exclusive rights over the license site: A small mine license shall be issued by the Ministry for a term not exceeding 20 years. Said license
1) Exploring the minerals covered by the license. may be renewed or extended for an additional period or periods the total of which does not exceed
2) Collecting samples from the license site to determine whether the site contains minerals 20 years, provided that the initial, renewed, and extended periods do not exceed 40 years; and the
covered by the license, provided that they are not sold or commercially exploited. parts of the license site are contiguous. The license shall be limited to some of Class “A” and Class
3) Using any exploration method that precedes commercial production. “B” minerals as specified in the Regulations. The Ministry shall take into consideration the technical,
4) Establishing camps as well as facilities necessary for the protection of exploration machinery economic, and environmental aspects in estimating the area of the license site.
and equipment.
5) Using sand, gravel, or similar materials to the extent necessary to achieve the purposes of the Article 44
license.
6) Obtaining, during the validity of the exploration license, an exploitation license for areas A building-material quarry license shall be issued by the Ministry for a period not exceeding ten years.
within the exploration license site, provided the licensee fulfills all the obligations and satisfies Said license may be renewed or extended for an additional period or periods the term of each does
the exploitation license requirements specified in this Law and its Regulations, and proves the not exceed five years, provided that the area of the license site does not exceed one square kilometer
economic viability of exploiting ores and minerals. If the exploration license expires before and its parts are contiguous in a manner acceptable to the Ministry. The license shall be limited to
deciding on the exploitation license application, the exploration license shall be automatically Class “C” minerals, as specified in the Regulations. The Ministry shall take into consideration the
extended until a decision on the application is rendered; in such case, the licensee shall be technical, economic, and environmental aspects in estimating the area of the license site.
exempted from paying the fees for the extended period.
7) Any other rights provided for by the Regulations. Article 45
Article 42 1) Without prejudice to the provisions of Article 32 of this Law, the exploitation license shall
grant its holder the right to invest in mining operations and the extraction of ores and
A mining license shall be issued by the Ministry for a term not exceeding 30 years. Such license minerals, including any direct or indirect activity necessary to achieve the objectives of mining
may be renewed or extended for an additional period or periods the total of which does not exceed investment, as specified in the Regulations.
30 years, provided that the initial, renewed, and extended periods do not exceed 60 years; that the 2) A licensee who discovers deposits of minerals not covered by the license may, within 90 days
total area of the license site does not exceed 50 square kilometers and its parts are contiguous in from the date of the discovery, file an application with the Ministry for an exploitation license
a manner acceptable to the Ministry; and the license is limited to Class “A” and Class “B” minerals. for such deposits or for the modification of the current license.
For exploiting Class “C” minerals, the licensee shall submit an application to the Ministry and pay 3) An exploitation license shall not entitle its holder to own any part of the land covered by the
the fees, as specified in the Regulations. The Ministry shall take into consideration the technical, license, nor shall it entitle him any other right not expressly provided therein.
economic, and environmental aspects in estimating the area of the license site. 4) Without prejudice to the provisions of Article 35 of this Law and in accordance with the license
terms and conditions, the holder of an exploitation license shall, for the purpose of exploiting
Article 43 minerals covered by the license, have the following exclusive rights:
a) Producing and exploiting minerals covered by the license within the license site, by
A small mine license shall be issued by the Ministry for a term not exceeding 20 years. Said license
digging, polishing, concentration, smelting, and processing.
may be renewed or extended for an additional period or periods the total of which does not exceed
b) Transporting and selling minerals and ores in their original condition or after refinement,
20 years, provided that the initial, renewed, and extended periods do not exceed 40 years; and the
as specified in the Regulations.
parts of the license site are contiguous. The license shall be limited to some of Class “A” and Class
c) Exporting minerals and ores for commercial purposes.
“B” minerals as specified in the Regulations. The Ministry shall take into consideration the technical,
d) Exporting non-commercial samples, as specified in the Regulations.
economic, and environmental aspects in estimating the area of the license site.

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 e) Constructing, operating, and maintaining mines, buildings, laboratories, workshops,
pipelines, processing plants, waste disposal dumps, and other facilities necessary to
achieve the purposes of the mining activity covered by the license.
f) Establishing networks of water, electricity, telephone, sewage, rainwater drainage, and
pipes, as well as power plants, railways and private roads, upon the Ministry’s written
approval.
g) Conducting surveys and carrying out exploration operations for ores and minerals on
the license site after notifying the Ministry.
h) Using rocks, gravel, sand, and similar materials available at the license site to the extent
necessary to achieve the purposes of the license, subject to payment of the prescribed
fees.
i) Using available water resources to carry out the licensee’s operations, in accordance
with Article 33 of this Law.

Article 46
If the licensee fails to exploit one of the minerals covered by the license, the Ministry shall request
the licensee in writing to commence exploitation of such mineral. If the licensee fails to do so within
90 days, the Ministry may terminate his right to exploit such mineral and grant another person a
Part 6
license to exploit such mineral, provided this does not substantially affect the operations of the
original licensee. Financial Provisions
Article 47
The Ministry may, in accordance with the terms and conditions specified in the Regulations, permit
the licensee who does not wish to renew or extend the license to utilize the facilities located within
the license area to serve mining operations in another license area.

Article 48
The holder of an exploitation license shall, if he wishes to construct facilities or utilize lands outside
the license site to achieve the purposes of the license, file an application with the Ministry to obtain
a general purpose license in accordance with this Law and its Regulations.

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 Article 49 Article 52
The Table annexed to this Law shall determine the following fees: A licensee under this Law shall be entitled to the incentives provided for in other laws, particularly
1) Application fees. the Income Tax Law and the Foreign Investment Law.
2) License issuance, renewal, and extension fees.
3) License transfer fees.
The Council of Ministers may amend such fees upon the recommendation of the Minister.
Article 53
Imported equipment, machinery, and spare parts necessary for carrying out any licensed mining
Article 50 activity shall be exempted from customs duties according to statements and lists approved by the
Ministry.
1) Payment of the exploitation license for Class “A” minerals shall be as follows:
a) For a person not subject to income tax: Article 54
First: an amount equal to the income tax on the annual net income less the amount of
due zakat. A mining fund shall be established at the Ministry to develop and promote the mining sector and
Second: an amount for each ton of produced ore or a percentage of the net revenues mining activities through securing sustainable financing. The fund resources shall comprise the
resulting from the activity covered by the license, in accordance with the Regulations following:
and upon agreement with the Ministry of Finance. Such amount shall be waived for the 1) Fees for licenses and services rendered by the Ministry.
first five years from the license issuance date. 2) Fines imposed under this Law.
b) For a person subject to income tax: 3) Surface rentals.
An amount for each ton of produced ore or a percentage of the net revenue resulting 4) Amounts generated from bids.
from the activity covered by the license in addition to the income tax, subject to the 5) Gifts, donations, and endowments.
Regulations and upon agreement with the Ministry of Finance. Such amount shall be Such amounts shall be deposited in an account under the fund’s name opened with the Saudi
waived for the first five years from the license issuance date. Arabian Monetary Authority or with banks licensed to operate in the Kingdom. The Minister shall,
2) A holder of an exploitation license for Class “B” and Class “C” minerals shall, upon agreement in coordination with the Minister of Finance, issue a regulation for allocation of such funds or parts
with the Ministry of Finance, pay an amount for exploitation as specified in the Regulations, in thereof to the mining sector as well as relevant services and agencies.
addition to applicable zakat, income tax, and other amounts due to relevant agencies.
3) The Minister may, upon agreement with the Minister of Finance, reduce the fee for any mineral Article 55
or mixture thereof if processed in the Kingdom, in accordance with the Regulations.
4) The Regulations shall, upon agreement with the Ministry of Finance, determine the surface 1) The Ministry shall, in accordance with statutory procedures, establish one or more subsidiary
rentals for State-owned lands, and the fees for other licenses and services. companies to provide mining services.
2) The capital of the companies referred to in paragraph (1) of this Article shall be paid by the
Article 51 mining fund referred to in Article 54, pursuant to a decision by the Minister.
3) Revenues of companies referred to in paragraph (1) of this Article shall consist of the fees of
If a mineral or material or the derivatives thereof do not have a recognized price at the point of export services which the companies provide in addition to amounts allocated from the mining fund
or point of exploitation within the State, the Ministry shall determine their value, as applicable. pursuant to a decision by the Minister.

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 Article 56
1) Without prejudice to Article 25 of this Law, the following acts shall be deemed in violation of
this Law:
a) Carrying out any mining activity without a license.
b) Not complying with this Law, its Regulations, or license terms and conditions.
c) Providing misleading or false information to the Ministry.
d) Delaying the submission of information or reports requested by the Ministry, or failing
to do so.
e) Defaulting in payment of amounts due under this Law and its Regulations.
2) Without prejudice to any harsher penalty provided in any other law, any person who commits
any of the violations referred to in paragraph (1) of this Article shall be subject to one or more
of the following penalties:
a) A fine not exceeding one million riyals for each violation.
b) Suspension of activity.
c) Revocation of license.
d) Confiscation of machinery and equipment used in the commission of the violation.
Part 7 3) The Ministry shall, pursuant to a decision by the committee referred to in Article 57 of this
Law, recover all minerals, ores, and their derivatives which result from operations carried out
in violation of this Law and revenues derived therefrom, and shall collect the fees for exploited
Violations and Penalties and extracted ores and minerals.

Article 57
1) The Ministry shall impose a fine not exceeding 200,000 riyals for any of the violations stipulated
in Article 56(1) of this Law. If, however, it decides that the violation warrants a fine greater than
200,000 riyals, it shall refer the violation to the committee referred to in paragraph (2) of this
Article.
2) Subject to the provisions of paragraph (1) of this Article, one committee, or more, shall be
formed pursuant to a decision by the Minister. The committee shall be composed of five
members specializing in Sharia or law, finance, and mining, with at least one member in each
area of specialization. The committee shall review the violations and determine the penalties
stipulated in Article 56(2), except for the following penalties:
a) Revocation of license: said penalty shall be imposed pursuant to a decision by the
Minister upon a reasoned recommendation by the committee.
b) Confiscation: said penalty shall be imposed by the competent court.
Committee decisions are subject to appeal before the administrative court within 60 days from the
date of notification. The Minister shall determine the committee’s work procedures and remuneration
of its members.

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 Article 58
The Ministry and the licensee may agree to settle any dispute through arbitration in accordance with
the Arbitration Law. For the purposes of this Law, the administrative court shall be the competent
court to consider such dispute.

Article 59
The possession, use, sale, or disposition of any radioactive material, including uranium and thorium,
shall be in accordance with this Law, its Regulations, and other relevant laws. A person who discovers
any radioactive material shall immediately report such discovery to the Ministry.

Article 60
The Ministry shall, as specified in the Regulations and in the manner it deems appropriate, publish
the full text of the following documents:
1) Decisions of a general nature.
2) Decisions of license issuance, renewal, extension, termination, and transfer.

Part 8 3) Notifications relating to liens registered on licenses.

4) Decisions designating mineral reserve areas and mining complexes, or terminating such
designation.

General Provisions 5) Bidding announcements.

6) Other decisions or documents provided for in the Regulations.

Article 61
1) This Law shall supersede the Mining Investment Law promulgated by Royal Decree No.
(M/47), dated 201425/8/H, and shall repeal any provisions conflicting therewith.
2) Notwithstanding paragraph (1) of this Article, the rights granted under the Mining Investment
Law promulgated by Royal Decree No. (M/47), dated 201425/8/H shall remain effective after
the entry into force of this Law. The financial provisions prescribed under this Law and its
Regulations shall apply to the holders of such rights as of the date this Law enters into force.

Article 62
The Regulations shall be issued by the Minister and be published in the Official Gazette, and shall
enter into force on the date this Law enters into force.

Article 63
This Law shall be published in the Official Gazette and shall enter into force 180 days following the
date of its publication.

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