Saudi Gazette report

RIYADH — The new Mining Investment Law, approved by the Council of Ministers on Tuesday, would be instrumental in generating over 200,000 direct and indirect jobs by 2030, according to the Minister of Industry and Mineral Resources Bandar Al-Khorayef.

In a press briefing on the Cabinet decision, the minister was quoted as saying by the Saudi Press Agency (SPA) that the law consisting of 63 articles is expected to achieve, in the near future, a qualitative shift in the mining sector and the mineral industry in the Kingdom, with optimal exploitation of mineral resources all over the Kingdom that are valued at a total of about SR5 trillion.

The mining sector, Al-Khorayef said, is expected to increase its contribution to the country’s gross domestic product (GDP) by more than SR240 billion in addition to reducing imports by about SR37 billion. According to the minister, approval of the new law promises one of the most important comprehensive strategy initiatives for mining and mineral industries in Saudi Arabia.

“The mining law is one of the most important goals of the program of developing the national industry and logistic services. It is also a major program that contributes to creating an attractive investment environment in the mining sector to achieve the goals of the Kingdom’s Vision 2030,” the minister pointed out.

Al-Khorayef said that among the foundations of the mining and mineral industry strategy and its multiple initiatives are sector governance, enhancing transparency and increasing investor confidence in the sector, which are guaranteed in the new mining investment law.

The other goals of the law include achieving sustainability for the sector through great attention to preserving the environment, monitoring and achieving compliance with environmental, health and safety regulations for workers in the sector and local communities and motivating them to participate.

He said among the most important amendments in the new law is the establishment of a mining fund to ensure continuous financing for the sector and support the activities of geological survey and exploration programs, which will attract domestic and foreign investments and accelerate the activities in the field.