Overview V 2

Saudi Arabia
Mining Overview
Jan, 2022
mim.gov.sa
Towards a
Promising
Industrial
Future
TABLE OF
CONTENTS
4
VISION 2030 �� 6
OVERVIEW ��6
VRPS ��7
NATIONAL INDUSTRIAL DEVELOPMENT & LOGISTICS ��8
RANKINGS �� 10
KEY FINANCIAL NUMBER �� 11
INTERNATIONAL INDICES ��12
MINING HISTORY AND CURRENT STATUS 14
MINING HISTORY AND CURRENT STATUS �� 14
HISTORY �� 15
CURRENT ACTIVE MINING LICENSES �� 16
SAUDI ARABIA MINING VALUE PROPOSITION ��16
MINING STRATEGY ALIGNMENT WITH VISION 2030 ��16
UNEXPLORED LANDMASS ��18
SIGNIFICANT DEMAND �� 20
NEW MINING LAW ��22
THE LAW HAS IDENTIFIED 3 TYPES OF LICENSES �� 24
TAXATION AND INCENTIVES �� 26
INFRASTRUCTURE NETWORK �� 28
TALENT POOL ��29
5
Ministry of Industry and Mineral Resources Saudi Arabia Mining Overview Vision 203
VISION 2030
OVERVIEW
Vision 2030 was launched in 2016, a roadmap drawn up by the Crown Prince, to harness the strengths and our
strategic position, investment power and place at the center of Arab and Islamic worlds. The full attenvtion
of the Kingdom, and our Leadership, is on harnessing our potential to achieve our ambitions.
The Vision was cascaded into strategic objectives to enable effective implementation through Vision
Realization Programs.
6
VRPS
The VRPs were announced during the first five years after the Vision's launch. VRPs align their activities through
approved delivery plans guided by pre-defined objectives and KPIs tied to 5-year milestones.
As Vision 2030 moves into the next stage, the VRPs have been reviewed, assessed, and re-aligned to match the needs
of the Kingdom and to best achieve the Vision.
Public Investment Fund The Program aims to achieve governmental operational excellence,
improve economic enablers, and enhancing living standards
The Public Investment Fund Vision Realization Program drives by accelerating the implementation of primary and digital
economic diversification in the Kingdom through strategic infrastructure, and engaging stakeholders.
international and domestic investment.
Privatization
Housing
The Program aims to strengthen the role of the private sector by
The Housing Program provides housing solutions that meet the unlocking state-owned assets for investment. Privatizing selected
needs and aspirations of Saudi families, with a focus on sustainability government services will improve the quality of services and reduce
and technology. overall costs.
Doyof Al Rahman Health Care Transformation

Doyof Al Rahman Program aims to enrich and deepen the Hajj and The program aims to restructure the health sector in the Kingdom
Umrah experience through the provision of exceptional services to be a comprehensive, effective and integrated health system that
at all stages of their journey. is based on the health of the individual and society and depends on
the principle of value-based care.
Fiscal Sustainability
Financial Sector Development
The Fiscal Sustainability Program aims to improve Government
performance through spending efficiency, revenue growth and The Program aims to develop a diversified and effective financial
risk management. sector to support the development of the national economy,
diversify its sources of income, and stimulate savings, finance and
Human Capability Development investment.
The Program aims to prepare citizens for the job market and to be National Industrial Development & Logistics
able to compete globally. It will do this through developing basic
and future skills, developing knowledge and values that enhance The National Industrial Development and Logistics Program (NIDLP)
the 21st century and global citizenship skills. focuses on transforming Saudi Arabia into an Industrial Powerhouse
and a global logistics hub by leveraging the resources of sectors
Quality of Life like Mining and Energy and focusing on the
The Program improves individuals’ lifestyles by developing an

ecosystem to support and create new options that boost citizens’
and residents’ participation in cultural, environmental, and sports
activities.
National Transformation
7
NATIONAL INDUSTRIAL
DEVELOPMENT & LOGISTICS
The National Industrial Development and Logistics Program was launched at the beginning of 2019, out of the
leadership's belief in the importance of the program's 4 sectors (Energy, mining, industry and logistics) and via
integration to maximize their contribution to the Kingdom's efforts to grow and diversify the economy.
Key Objectives
1. Develop oil and gas adjacent Industries 8. Enhance the competitiveness of the energy sector
2. Localize promising manufacturing industries 9. Create and improve the performance of logistics hubs
3. Localize military industry 10. Improve the local, regional and international connectivity of
trade and transport networks
4. Create special zones and rehabilitate economic cities
11. Increase the local content in non-oil sectors
5. Grow and capture maximum value from the mining sector
12. Increase localization of Oil and Gas sector
6. Raise gas production and distribution capacity
7. Grow the contribution of renewables to the national energy mix.
Commitments by End of 2025
< 60 Days To issue mining license
50% Completion of the geological survey program of the

Arabian shield
40.8% Raise in electricity generation efficiency
70% Increase in local content for the oil & gas sector
8 Special economic zones across Saudi Arabia
8
Top Achievements
Local
content has achieved rapid
gains in a number of projects
until 2020, with a value of more than SAR 18Bn,
and more than 23K government tenders since
the launch of the government tenders and
procurement systems.
Launching
the “Saudi Made”
program as a
national iniative that aims to support local products
locally & globally.
Launched
the geological
survey program;
the largest regional geological study to explore
mining opportunities in Saudi Arabia, on an area
of more than 600,00km2 covering the entire
geological area known as the “Arab Shield”.
Launching
5 new shipping
lines to serve
MENA markets, North Europe, and the Indian
subcontinent.
Increased
the share of gas
production in Saudi
Arabia, as the capacity for processing gas reached
18Bn standard cubic feet per day, an increase
of 16% over 2016, to drive the industry growth,
desalination and electricity production.
Launching
renewable
energy projects
in Saudi Arabia; the first solar power plant
started operations in Sakaka with the capacity
of 300MW. This achievement was coupled with
a global record in energy production cost by
Dumat Al-Jandal wind energy project
9
Ministry of Industry and Mineral Resources Saudi Arabia Mining Overview Ranking
RANKINGS
th rd
6 for corporate
governance 3 In debt to GDP ration
among G20 countries
st th
1 Confidence in the
performance of the
government 2021
9 Globally in digital
skills among active
population
rd
A1 Country credit rating,
Moody’s 2020 3 In debt to GDP
ration among G20
countries
th th
13 For future
workforce 13 Globally for
commitment to
cybersecurity
st th
1 Across the Arab
world and 21st
globally in the World
9 Largest stock
market in the
world and the
Happiness report in largest in MENA
2021 region (Tadawul)
10
Ministry of Industry and Mineral Resources Saudi Arabia Mining Overview Key Financial Numbers
KEY FINANCIAL
NUMBERS
$700.1 BN
Nominal GDP in 2020
$675 BN
Real GDP in 2020
$19,937
Real GDP in 2020
60.2%
Non-oil sector’s contribution to GDP in Q2 2021
11
Ministry of Industry and Mineral Resources Saudi Arabia Mining Overview International Indices
INTERNATIONAL
INDICES
Ease of Protecting 2016 2021

Minority Investors
83 3
Economic Freedom 2016 2021

Index
NA 63
E-Government 2016 2021

Development Index
44 43
Legatum Prosperity 2016 2021

Index
85 71
Ease of Starting a 2016 2021

Business
98 36
12
Ministry of Industry and Mineral Resources Saudi Arabia Mining Overview International Indices
13
Ministry of Industry and Mineral Resources Saudi Arabia Mining Overview Mining History and Current Status
MINING HISTORY
AND CURRENT
STATUS
MINING HISTORY AND

CURRENT STATUS
14
Ministry of Industry and Mineral Resources Saudi Arabia Mining Overview Mining History and Current Status
HISTORY
1931 – 1934
The journey to search for minerals and water supplies started
Mining agreement with a Saudi-British-American company is
signed.
1939 – 1954
900,000 ounces of gold and more than 1M ounces of silver were
produced from Mahd-AlDahab mine.
1956 – 1968
Directorate of Mineral Resources was established.
Agreements with British, Canadian, French, & Japanese companies,

to achieve mining objectives.
1997
Mining company Ma'aden was established by a Royal mandate to
practice various mining activities in Saudi Arabia.
2007 – 2013
Strategic partnership and joint ventures were developed to help
meet mining goals.
2016 – PRESENT
Vision 2030 is launched.
Mining Strategy was approved.
National Industry and Logistics Services Development Program

(NIDLP) is launched.
15
Ministry of Industry and Mineral Resources Saudi Arabia Mining Overview Mining Strategy alignment with vision 2030
CURRENT MINING
ACTIVE STRATEGY
MINING ALIGNMENT
LICENSES WITH
VISION 2030
1,990
License
32
Reconnaissance license
633 SAUDI ARABIA

MINING VALUE
Exploration license
165
Exploitation license PROPOSITION
1,160
Building Materials
Quarry license
*As of Jan 2022
16
Ministry of Industry and Mineral Resources Saudi Arabia Mining Overview Saudi Arabia Mining Value Proposition
The Saudi government intends for × Create growth engines beyond oil and gas.
the mining sector to help achieve × Create high value jobs for Saudi nationals.
three of the Vision 2030 objectives: × And drive economic development of remote areas.
× Grow the total sector GDP impact by USD 47 Bn.

By 2030, the impact of the mining
sector should come in the form of × Create 219,000 new jobs.
three macroeconomic results: × Develop remote areas creating 40,000 jobs.
Saudi Arabia’s mining sector relays on six main reasons to invest in

Saudi:
Large unexplored landmass encouraging foreign investment in mining
Significant demand for mining products
Investor friendly mining law in alignment with global benchmarks
Best-in-class taxation and incentives for investors
Well-connected and robust infrastructure network
Experienced, ever growing talent pool
17
UNEXPLORED LANDMASS
Mineral Resources
Large unexplored landmass encouraging foreign investment in
mining, where Saudi geological resources could exceed USD 1.3 TN,
and over 48 minerals have been identified
Overview of the mineral’s resources in Saudi:
1. IRON ORE 5. GOLD 9. ZINC

10%: USD 70Bn 10%: USD 229Bn 10%: USD 138Bn
2. NIOBIUM 6. URANIUM 10. SILVER

90%: Under study 90%: Under study 90%: NA
3. BAUXITE 7. COPPER 11. FELDSPAR

4. PHOSPHATE 8. SILICA 12. LIMESTONE

10%: USD 321Bn Abundant and will satisfy Abundant and will satisfy
local demand for thousands local demand for thousands
50%: USD 233Bn of years of years
90%: USD 102Bn
18
Regional Geological Survey Program

The Regional Geological Survey Program (RGP) initiative
with an expected expenditure of SAR 2.6BN, will provide
investors with the latest and most accurate geological,
geochemical and geophysical geodata as the foundation to
further discovery of mineral wealth across the Kingdom.
National Geological Database

The National Geological Database (NGD) web-portal is a
National geological and topographic data repository that
includes:
• Geological and topographic maps
• Mineral Occurrences Deposit Sites (MODS)
• Geochemistry and Geophysics data
• Borehole data
• Administrative boundaries and more.
• National Core Library (NCL)
Learn more
19
SIGNIFICANT DEMAND
Large Demand
Saudi Arabia has large demand for mineral products as indicated by its
ranking in mineral consumption. In terms of demand, Saudi Arabia is:
nd metals rd th
2 in precious
3 in Copper
5 in ceramic
tiles
th th inCarbonates th Aluminum
8 in
Phosphate 12 Sodium
15 in Steel and
Supply Gap
Demand exceeds local supply, reflected in a large amount of imported resources. leading to
multi-billion-dollar investment opportunities and value chain integration.
20
Net Imports Total Imports
Iron/Steel Iron/Steel
10 0
Precious Metals Precious Metals
5 10
Base Metals Base Metals
2.1 15
Aluminum Aluminum
0.4 17.1
Fertilizers (excl. urea) Fertilizers (excl. urea)
1 17.5
Other Other
2.7 18.5
Total
21.2
21
Projected Growth in Demand

Demand across many value chains is rising due to economic and industrial growth, supported by
mega and giga projects, new local content policy and localization programs.
NEW MINING LAW

The new mining law was developed in cooperation with leading local and international
organizations and relevant government stakeholders to achieve three main objectives:
1. Governance and Transparency

Large unexplored landmass encouraging foreign investment in mining
Significant demand for mining products
Investor friendly mining law in alignment with global benchmarks
Best-in-class taxation and incentives for investors
Well-connected and robust infrastructure network
22
Mining Portal
An online platform that aims to provide all
services related to the mining sector. The
investor can complete all necessary procedures
automatically from the comfort their office or
home.
Learn more
2. Investment Attractiveness
Permitting mining license mortgage
Extend exploration licenses duration
Offers a world-best competitive mining fiscal regime.
Up to 90% royalty reduction to encourage further downstream development
3. World-class Sustainability
Mandatory rehabilitation and closure plan
Provision of security for Rehabilitation costs – flexible based on
creditworthiness (e.g. parent guarantee vs. escrow)
Mandatory plan for community engagement and local content
Streamlining environmental and social reporting requirements
23
EXPLORATION
THE LICENSE
LAW HAS Grant the licensee the following exclusive rights
to:
IDENTIFIED 6. Exploring the minerals covered by the license.
7. Collecting samples from the license site.
3 TYPES OF 8. Using any exploration method that precedes

commercial production.
9. Establishing camps as well as facilities
LICENSES necessary for the protection of exploration

machinery and equipment.
10. Using sand, gravel, or similar materials to the

extent necessary to achieve the purposes of
the license.
11. Obtaining, during the validity of the exploration

license, an exploitation license.
RECONNAISSANCE
LICENSE EXPLOITATION
LICENSE
Entitle the licensee to survey and explore the
site designated in the license. The licensee shall An exploitation license types
have a non-exclusive right over the license 1. A mining license
site to:
› Max area 50sqm
1. Examine the deposits covered by the license › Class A, B
and collect samples.
2. A small mine license
2. Prospect the area covered by the license,
except for areas excluded under this Law. › Max area 1sqm
› Some of Class A, B
3. Use geophysical and geochemical methods,
as well as other scientific methods. 3. A building material license
4. Carry out any other reconnaissance › Max area 1sqm
activity commonly used in the preliminary › Class C
examination of lands with potential minerals
or ores. 4. A general purpose license
5. Have access to non-confidential maps and
5. Permit the licensee to construct facilities or
data maintained by the Ministry.
utilize lands outside the license site.
The law classified the CLASS A

minerals as follows minerals, precious and semi-precious stones, and ores that
require advanced operations and conceMetallicntration.
Examples:
Bauxite>40%, Copper, Iron Ore>40%, Nickel, Silica>95%, Rare
Earth Elements, Zinc, Lithium, Gold, Silver, Lead.
24
Saudi Arabia surface rent is considered among the lowest worldwide

For exploration license For exploitation license
SAR per km2 or License Type Area SAR

Year
fraction of km2
Mining License
1 33
2 10 General Purpose Per km2 or a
License 10,000
fraction of km2
3 15
4 20 Small Mine License
5 30 0 – 0.25 km2
10,000
6 50
7 100 Building Material 0.25 – 0.5 km2 15,000
8 150 Quarry License
0.5 – 0.75 km2 20,000
9 200
0.75 – 1 km2 25,000
10 250
The law offers a world-best competitive mining fiscal regime

Financial Consideration:
Class A Class B Class C
% net worth
of the
Mineral mineral when Mineral SAR/ton Mineral SAR/ton
extracted
Bauxite>40% 2.5% Bauxite>40% 2.5 Gravel 0.67
Dolomite
Copper 1.5% 4.5 Crushed Marble 3.5
0 – 50,000 tons
Nickel 2% Fluorite 15 Clay 2.25
Zinc 2% Potash 10 Basalt 3
Lithium 1% Salt 4.5 Silica<95% 38
*Minimum mining capacity is applied in ton according to site area
CLASS B CLASS C
Non-metallic minerals, industrial minerals,
minerals, and
andraw
rawmaterials.
materials. Materials used for construction purposes.
Examples: Bauxite<40%, Dolomite, Iron Ore<40%, Feldspar, Magnesite, Potash,

Examples:
Salt.
Bauxite<40%, Dolomite, Iron Ore<40%, Feldspar, Magnesite, Bauxite>40%, Copper, Iron Ore>40%, Nickel, Silica>95%, Rare
Potash, Salt. Earth Elements, Zinc, Lithium, Gold, Silver, Lead.
25
TAXATION AND INCENTIVES

Financing
Saudi Industrial Development Fund (SIDF)
SIDF finances advanced exploration and mining projects for all minerals up to
75% of costs of eligible projects. SIDF also offer financing products for mid/
downstream manufacturing, SMEs, digitization, renewables and increasing
local content.
Learn more
Saudi Exim Bank
Saudi Exim Bank offers multiple direct financing products (e.g. Supply chain
financing, Pre-export financing, working capital financing).
Learn more
Saudi Export
Saudi Exim Bank offers multiple direct financing products (e.g. Supply chain
financing, Pre-export financing, working capital financing).
Learn more
HRDF
HRDF covers monthly salaries of up to 30% for Saudi employees (extra 10 %

for females) for 2 years
Learn more
26
Incentives and Enablers
Saudi Authority for Industrial Cities and Technology Zones (Modon)
Modon oversees 36 existing and under-development industrial cities across

the Kingdom.
Learn more
Zakat, Tax and Customs Authority
Customs duties are exempted on imported machinery, equipment, raw

materials and spare parts if they are for industrial use.
Learn more
Local Content and Government Procurement Authority (LCGPA)
Local Content & Government Procurement Authority is the governmental

arm that enforces an advantage to bidders with higher local content and
provide 10% preference for local producers.
Learn more
Ministry of Industry and Mineral Resources
Severance fees exemption to miners for the first five years of license’s
issuance date; additionally, royalty discounts of up to 30% can be availed for
each stage of local downstream processing.
Learn more
27
INFRASTRUCTURE NETWORK
Saudi Arabia has historically spent considerable efforts to develop a robust transportation network
and continues to invest in mega transportation projects. In 2019, Saudi Arabia was ranked the 1st in
road connectivity and 21st in liner shipping connectivity by the World Economic Forum.
Roads
73,000 km national roads under Ministry of Transport, including:
4,900 km – Highways 14,189 km – Dual roads 54,180 km – Single roads
Airports
Number of airports:
10 international 3 regional 16 domestic
Capacity; +100M passengers annually Freight; 0.8 MN tons annually
Rail
Number of airports:
Capacity; +11 million tons annually of minerals Length of network; +4,500 km
Since 2011 AD until today, SAR transport 58 million tons of phosphates, bauxite, etc.
Ports
Number of airports:
10 ports for (non-oil) trade (9 public, 1 private) +280m tons of cargo
TEU 9.0m of container throughput
28
TALENT POOL
Saudi Arabia has 44 universities some of which are highly ranked, as well as 260 Technical and
Vocational Training Facilities across its different regions offering a wide range of disciplines
including Geology and mining engineering.
Every year, on average, 180,000 bachelor graduates and 35,000 diploma graduates enter the market.
29
mim.gov.sa Copyright © 2021 Ministry of Industry and Mineral Resources. All rights reserved.

Overview V 2

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Overview V 2

Загружено:

Авторское право:

Доступные форматы

Saudi Arabia

MINING HISTORY AND CURRENT STATUS 14

SAUDI ARABIA MINING VALUE PROPOSITION ��������������������������������������������������������������������16

MINING STRATEGY ALIGNMENT WITH VISION 2030 �������������������������������������������������������16

Doyof Al Rahman Health Care Transformation

The Program improves individuals’ lifestyles by developing an

7. Grow the contribution of renewables to the national energy mix.

Commitments by End of 2025

< 60 Days To issue mining license

50% Completion of the geological survey program of the

40.8% Raise in electricity generation efficiency

8 Special economic zones across Saudi Arabia

Ease of Protecting 2016 2021

Economic Freedom 2016 2021

E-Government 2016 2021

Legatum Prosperity 2016 2021

Ease of Starting a 2016 2021

MINING HISTORY AND

Agreements with British, Canadian, French, & Japanese companies,

Mining Strategy was approved.

National Industry and Logistics Services Development Program

633 SAUDI ARABIA

*As of Jan 2022

× Grow the total sector GDP impact by USD 47 Bn.

three macroeconomic results:​ × Develop remote areas creating 40,000 jobs. ​

Saudi Arabia’s mining sector relays on six main reasons to invest in

Overview of the mineral’s resources in Saudi:

1. IRON ORE 5. GOLD 9. ZINC

50%: USD 36Bn 50%: USD 101Bn 50%: USD 39Bn

90%: USD 18Bn 90%: USD 46Bn 90%: USD 3Bn

2. NIOBIUM 6. URANIUM 10. SILVER

50%: USD 38Bn 50%: USD 22Bn 50%: USD 6Bn

90%: Under study 90%: Under study 90%: NA

3. BAUXITE 7. COPPER 11. FELDSPAR

50%: USD 11Bn 50%: USD 23Bn 50%: USD 23Bn

90%: USD 9Bn 90%: USD 7Bn 90%: USD 7Bn

4. PHOSPHATE 8. SILICA 12. LIMESTONE

Regional Geological Survey Program

National Geological Database

Net Imports Total Imports

Base Metals Base Metals

Fertilizers (excl. urea) Fertilizers (excl. urea)

Projected Growth in Demand

NEW MINING LAW

1. Governance and Transparency

IDENTIFIED 6. Exploring the minerals covered by the license.

7. Collecting samples from the license site.

3 TYPES OF 8. Using any exploration method that precedes

9. Establishing camps as well as facilities

LICENSES necessary for the protection of exploration

10. Using sand, gravel, or similar materials to the

11. Obtaining, during the validity of the exploration

The law classified the CLASS A

Saudi Arabia surface rent is considered among the lowest worldwide

SAR per km2 or License Type Area SAR

The law offers a world-best competitive mining fiscal regime

Bauxite>40% 2.5% Bauxite>40% 2.5 Gravel 0.67

Nickel 2% Fluorite 15 Clay 2.25

Zinc 2% Potash 10 Basalt 3

Lithium 1% Salt 4.5 Silica<95% 38

*Minimum mining capacity is applied in ton according to site area

Examples: Bauxite<40%, Dolomite, Iron Ore<40%, Feldspar, Magnesite, Potash,

TAXATION AND INCENTIVES

SAUDI ARABIA MINING VALUE PROPOSITION ��16

MINING STRATEGY ALIGNMENT WITH VISION 2030 ��16

three macroeconomic results: × Develop remote areas creating 40,000 jobs.