In this Law, the following terms and phrases shall have the meanings assigned thereto, unless the context requires otherwise:

• Law: The Mining Investment Law. Ministry: The Ministry of Industry and Mineral Resources.

• SGS: The Saudi Geological Survey.

• Minister: The Minister of Industry and Mineral Resources.

• Regulations: The Implementing Regulations of this Law.

• Mining Activity: Any operation carried out on deposits by means of reconnaissance, exploration, exploitation, processing, refinement, or any other mining-related activities. Mining Sector: The Ministry, SGS, companies established by the Ministry or by SGS, and other mining-related entities.

• Person: A natural or legal person.

• License: A document issued by the Ministry permitting a person to engage in a mining activity within a designated area, in accordance with this Law and its Regulations.

• Qualified Person: A person who meets the requirements for obtaining a license in accordance with this Law and its Regulations.

• Licensee: A person who is granted a license under this Law and its Regulations.

• License Site: A location the geographic coordinates of which are delineated in the license.

• Transfer: Transfer of a license from a licensee to a qualified person.

• Reconnaissance: A preliminary geological survey which, prior to carrying out exploration activities, is conducted for the identification of geological environment and surface evidence of minerals and ores.

• Exploration: An extensive search for deposits conducted on any site using geological, geophysical, or geochemical methods, or digging, or any other appropriate method to determine the presence of such deposits, their extent, quantity, quality, and mining viability.

• Exploitation: The process of extracting ores and minerals, by mining or quarrying, including any direct or indirect activity required to achieve this purpose.

• Mining: The process of extracting useful ores or mineral formations from the Earth or maritime areas, or evaporites which result from the evaporation of seawater or natural water bodies, including any direct or indirect mining activity required for such purpose.

• Deposits: Naturally occurring minerals or ores which exist in economically viable quantities.

• Ores: Natural accumulations of one or more minerals at a specific location, which make them economically viable. Minerals: Inorganic metallic or non-metallic compounds with distinctive chemical compositions and physical properties, classified as follows:

  • Class A: Metallic minerals, precious and semi-precious stones, and ores that require advanced operations and concentration as classified in the Regulations;

  • Class B: Non-metallic minerals, industrial minerals, and raw materials, as classified in the Regulations; and

  • Class C: Materials used for construction purposes, as classified in the Regulations. Mineral Formations: Natural geological forms and structures in which ores or minerals may be found. Evaporites: Materials extracted or resulting from the evaporation of water.

• Mine: A location from which useful minerals or ores are extracted, whether from the surface or subsurface, or from seawater or natural water bodies from which evaporites are extracted.

• Small Mine: A mine the area of which does not exceed one square kilometer and is classified as such by the Ministry according to the volume of its mineral deposit, production of ore, and capital investments.

• Quarry: Surface mine site located in mountains or the ground where rocks, minerals, or ores are extracted.

• Processing: Refining ores, removing impurities, or increasing concentrate.

• Excavation: Digging a hole or a pit of any type. Polishing: Rubbing the surface of minerals or rocks to make them smooth and shiny. Smelting: Melting minerals by heat or by any other means for refining and processing purposes.

• Concentrate: The percentage of a mineral in a product. Rocks: Natural earth substances which exist in solid form and which are generally composed of a metamorphic mineral assemblage that consists of one or more minerals. Gravel: Small stones ranging between 2mm and 75mm in diameter.

• Sand: A substance of less than 2mm in diameter which results from disintegration, weathering, or erosion of components of the Earth’s crust.

• Layer: A subsurface layer with consistent characteristics distinguishing it from other layers. Mineral Reserve Area: An area which contains quantities of ores or minerals found at mineable sites whose economic viability is geologically established or projected by the volume of mineral formations.

• Mining Complex: Lands which are designated for mining activities. Public Utilities: Lands which are designated for road networks, streets, public railways, airports, ports, oil and gas pipelines, and energy projects or for approved water projects. National

• Geological Database: A digital database that contains the geological, geochemical, geophysical, topographic, and geographic data of the State, as well as the results of survey studies and exploration activities, and information on licenses, mining reserve areas, and mining complexes. Reclamation: Actions that a licensee is required to carry out upon completion of all activities on a license site to restore it to its natural condition, in accordance with the laws.

• Closure: Actions that a licensee is required to carry out to close down a license site upon completion of any activity therein and reclamation of such site.

• Hydrocarbons: Conventional or non-conventional Hydrogen and carbon compounds which exist in their liquid or gaseous state, such as crude oil, shutin oil, shale oil, condensates, natural gas, shale gas, methane hydrates, natural tar, and bitumen, which are extracted or mined from the surface or subsurface.

• Hazardous Waste: Solid, liquid, gaseous, or radioactive waste which contains materials detrimental to humans or the environment and which results from mining activities.

• Surface Rental: A payment made by a licensee as rent for the land covered by the license. Maritime Areas: The maritime areas under the Law of the Maritime Areas of the Kingdom of Saudi Arabia.

• Control: The direct or indirect influence a person may have on another person’s actions and decisions.

1. All surface or subsurface deposits, including ores of all types and of all forms and compositions, shall be deemed the property of the State and may not be claimed by a third party through lapse of time. This shall include the State’s land territory and maritime areas.

2. Ownership of minerals and ores covered by an exploitation license shall, in accordance with this Law, transfer to the licensee upon their extraction from the license site during the validity of the license.

Without prejudice to the powers of relevant agencies, the Ministry shall be in charge of the application of this Law and overseeing its implementation. For this purpose, it may, inter alia, undertake the following:

• 1. Issuing regulations and instructions, designating forms, and setting procedures necessary for the implementation of this Law.

• 2. Setting policies for the mining sector and overseeing their implementation.

• 3. Designating the lands and maritime areas over which licenses may be granted under this Law, in coordination with the Ministry of Energy in matters falling within its jurisdiction.

• 4. Determining surface rentals and fees for licenses and services provided by the Ministry, in accordance with this Law and its Regulations.

• 5. Reviewing applications for licenses to grant rights under this Law and issuing such licenses in accordance with its provisions.

• 6. Collecting fees and financial returns from bids, surface rentals, and fines, prescribed under this Law.

• 7. Promoting research and development, planning, and investment in mining activities.

• 8. Seeking to achieve a systematic expansion of a sustainable mining infrastructure and related services.

• 9. Coordinating with the SGS in:

  • a) designating mineral reserve areas;

  • b) developing and updating the National Geological Database; and

  • c) providing the maps, survey data, and studies necessary for mineral investment.

• 10. Coordinating with relevant agencies to provide the infrastructure facilities necessary for mining areas, including roads, railways, ports, power plants, and power and water supply lines.

• 11. Cooperating with relevant agencies in monitoring mining sites.

• 12. Monitoring occupational health and safety measures that a licensee is required to comply with.

• 13. Coordinating with the Ministry of Interior to implement its mining-related security, safety, and fire protection instructions.

• 14. Overseeing the licensee’s activities.

• 15. Determining the content and form of any study, report, or directive requested in accordance with this Law or its Regulations.

• 16. Setting and updating development plans and programs for the mining sector and monitoring their implementation.

• 17. Identifying the ores, minerals, and elements that may not be developed, are reserved for future exploration or exploitation, or are subject to special regulation.

• 18. Qualifying specialized companies and firms to ensure compliance and detect violations, as prescribed by the Regulations.

The Ministry shall establish the following registries:

• 1. Application Registry: to register license applications filed with the Ministry.

• 2. License Registry: to register issued licenses and any action taken thereon, including renewal, amendment, transfer, extension, liens, termination, and expiration as well as any action affecting such licenses.

• 3. Mineral Zone Registry: to register the particulars of mineral zones, including mining complexes and mineral reserve areas. The Ministry shall, in coordination with SGS, make the registries accessible to the public, in accordance with the Regulations.

Without prejudice to the provisions of Article 2, this Law shall not apply to the following:

• 1. Hydrocarbon materials, deposits, or resources, excluding coal.

• 2. Pearls, coral, and similar marine substances.

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.

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:

• 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.

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.