Mineral Resources in the Kingdom

Mineral Resources in the Kingdom of Saudi Arabia are among the prominent economic sectors in the Kingdom and the third pillar of its national economy. The Kingdom's geological diversity provides a significant abundance of natural resources, placing it in the third rank among the top ten countries globally in natural resource reserves, valued at USD34.4 trillion. Additionally, its mineral resources are diverse, with forty-eight types of minerals, including fifteen that can be economically exploited.

Recent estimates of the Kingdom's untapped mineral potential, announced at the third edition of the International Mining Conference in Riyadh on January 10, 2024, indicate that the value of the Kingdom's mineral resources is approximately SAR9.375 trillion (USD2.5 trillion). This represents a 90 percent increase compared to previous estimates in 2016, which valued the resources at SAR5 trillion (USD1.3 trillion).

This increase includes additional quantities such as new discoveries of rare earth elements and transitional metals, as well as significant increases in phosphate ore and other minerals like copper, zinc, gold, and more. The increase also includes a reassessment of fair market prices.

These results, announced at the International Mining Conference, are attributed to exploration and geological mining survey operations, through the issuance of exploration licenses for minerals. The number of licenses quadrupled over three years (2021-2023), compared to the number of licenses issued during the six years prior to the introduction of the new Mining Investment Law in 2020, which increased exploration spending from SAR70 to SAR180 per km².

Despite its abundant mineral resources, the Kingdom is one of the largest consumers of mineral raw materials globally, surpassing major economies in consumption volume. The demand for construction-related materials such as iron, copper, and aluminum places it among the top fifteen consumers of these raw materials worldwide. In terms of infrastructure and construction, this positions the Kingdom as the eighth-largest consumer of concrete, the sixth-largest consumer of ceramics, the tenth-largest consumer of glass, and the fifth-largest consumer of barite, bentonite, and calcium carbonate. Additionally, it was the second-largest net importer of precious metals a few years ago.

The mining journey in the Kingdom began in the 1930s. Mining and mineral exploration activities started in 1931 when the founding King Abdulaziz Bin Abdulrahman Al Saud directed American geologist Karl S. Twitchell to explore oil and minerals in the Kingdom.

Exploration and excavation activities continued, leading to the development of a system for managing these resources. In 1933, the Bureau of Mines and Public Works was established under the Ministry of Finance to oversee mining operations in the Kingdom. In 1935, an agreement was signed between the government and British-American companies, forming the Saudi Arabian Mining Syndicate, to operate the old mines in Mahd adh-Dhahab.

Mahd adh-Dhahab mine location. King Abdulaziz Foundation for Research and Archives (Darah)

Mahd adh-Dhahab mine is one of the most prominent and oldest mining sites that have been discovered and developed and is still in production until nowadays. The Saudi Arabian Mining Syndicate obtained a license to exploit it and began mining operations in 1939. The amount of ore extracted was estimated to be around nine hundred thousand t until 1954. Subsequently, other sites were explored for different types of minerals such as phosphate, bauxite, iron, some rare earth elements, uranium, lead, zinc, tantalum, and gypsum.

As exploration works evolve, and in an attempt to attract foreign companies to invest in the Kingdom, the government established the Bureau of Mines to serve as a liaison between the Ministry of Finance, the Saudi Arabian Mining Syndicate, and other international companies holding mining concessions in the Kingdom.

In 1954, the state established the Directorate of Oil and Mineral Affairs under the Ministry of Finance to oversee the minerals sector and mining agreements in the Kingdom. In 1960, the Ministry of Petroleum and Mineral Resources was founded to supervise both the petroleum and mineral sectors, incorporating the Directorate of Oil and Mineral Affairs. In 1962, the General Directorate of Mineral Resources was established with a mandate to lay a strong foundation for the Kingdom's national geological and mineral infrastructure.

In 1963, the first mining law was issued in the Kingdom, outlining that the Ministry of Petroleum and Mineral Resources (currently the Ministry of Industry and Mineral Resources) would carry out exploration activities either directly or through consulting companies. In 1987, the General Directorate of Mineral Resources was restructured to advance the mining sector and to develop a broad base of Saudi expertise capable of managing and organizing the Kingdom's mining sector and handling various technical and administrative tasks.

In 1994, the Council of Ministers approved the renaming of the General Directorate of Mineral Resources to the "Deputy Ministry for Mineral Resources." In 1997, the Saudi Arabian Mining Company "Ma'aden" was established under a royal decree with the purpose of engaging in various mining activities within the Kingdom.

Until 1999, the Deputy Ministry for Mineral Resources (currently the Deputy Ministry of Industry and Mineral Resources) conducted geological surveys and mineral exploration, resulting in the compilation of geological, technical, and economic databases on the Kingdom's mineral resources. The databases indicate more than five thousand mineral sites, including 1,273 sites for precious metals, 1,172 sites for base metals, and over 2,500 sites for non-metallic minerals.

The Kingdom is taking several steps to explore its mineral resources, including: providing essential geoscience data and technical information digitally, intensifying preliminary exploration and aerial surveys, establishing exploratory incubators to assist small and medium-sized companies in contributing to exploration activities, initiating detailed exploration operations, with a primary role for local and international private sectors, accelerating mineral ore exploration through a program designed to support experienced companies, attract global expertise, and train Saudis, in addition to developing the Mining Investment Law and speeding up the licensing process.

Mineral exploration activities in the Kingdom were carried out in three phases. The first phase was from 1934 to 1963, during the reign of King Abdulaziz Bin Abdulrahman Al Saud. During this phase, mineral exploration began in the Kingdom, and large quantities of waste were found alongside remnants of various mining activities. The second phase, from 1963 to 1998, witnessed the completion of aerial and magnetic surveys of the Kingdom and the compilation of geological maps for the Arabian Shield. The third phase began in 1999 with the establishment of the Saudi Geological Survey. This phase was marked by the completion of the geological mapping infrastructure, covering all parts of the Arabian Shield, where most of the Kingdom's discovered mineral ores are concentrated.

Mineral exploration activities are expanding in the Kingdom, and the discovered metallic mineral deposits have been categorized into nine main models. This classification is based on the geological environments in which these deposits were formed, as well as the structures controlling their formation. These models include massive sulfide deposits containing base and precious metals, deposits of chromium, nickel, and copper, deposits of tin and tungsten, deposits of rare earth elements and uranium, deposits of gold associated with low-and-medium-temperature hydrothermal solutions, porphyry copper deposits associated with gold and molybdenum, copper and zinc deposits, and deposits of gold, titanium, and tungsten.

The Kingdom also boasts a wide variety of non-metallic minerals, as its rocks contain a vast diversity of these resources. These include deposits of phosphate, feldspar, silica, fluorite, limestone, claystone, gypsum, anhydrite, dolomite, and magnesite. Additionally, several projects have been undertaken on gemstones, both within basalt rocks in volcanic fields such as Harrat Rahat and Harrat Kishb, and outside them throughout the Arabian Shield.

The mining sites in the Kingdom are diverse, reflecting the geological characteristics of its regions. There are three main geological areas: the Arabian Shield, where the rocks are over 1,200 million years old; the Arabian Plate, with rock ages estimated at less than 540 million years; and the marine areas (the Red Sea and the Arabian Gulf), which formed over the past thirty million years.

Each geological area contains its own unique types of minerals. The Arabian Shield, covering an area of seven hundred thousand km², is the primary region for precious metals like gold, base metals like copper, and some industrial minerals. The Arabian Plate, which makes up two-thirds of the Arabian Peninsula, is characterized by sedimentary rocks that contain industrial minerals such as bauxite and phosphate. The Red Sea, covering an area of 438,000 km², is one of the least explored regions and is almost devoid of mineral exploration. Still, it generally contains some chemical industry minerals like potassium.

Uranium mineralization in the Kingdom are found in recent granite rocks and pegmatite rocks. The most important areas containing uranium and its associated elements, such as thorium, niobium, tantalum, tin, yttrium, zirconium, and rare earth elements, include the regions of al-Ghurayyah, Jabal Sayid, Jabal Tawilah, Jabal Hamrah, Jabal Nataq, Jabal Abu Hiyalah, Jabal Az-Zuhd, and Umm al-Birak.

Many industrial minerals are available at various sites across the Kingdom and can be extracted through surface mining. These include phosphate in al-Jalamid area (120 km southeast of the city of Turayf), bauxite in az-Zabirah area (two hundred km southwest of Hail), magnesite in al-Ghazalah Governorate (160 km southwest of Hail), and silica sands in Jabal Burm and Jabal ad-Daghm (forty km northeast of Riyadh), in addition to other industrial minerals and deposits.

Phosphate mine in Hail Province. (SPA)

Mining activities have developed and expanded in various provinces across the Kingdom, with the number of mining complexes reaching 377 by the end of 2022, covering a total area of 44,365 km². These complexes are distributed across thirteen provinces, led by Makkah al-Mukarramah Province with seventy-six complexes, followed by Riyadh Province with sixty complexes, al-Madinah al-Munawwarah Province with fifty-three complexes, Aseer Province with thirty-four complexes, the Eastern Province with twenty-five complexes, Najran Province with twenty-four complexes, al-Qassim Province with twenty-three complexes, al-Jawf Province with twenty complexes, al-Bahah Province with seventeen complexes, Hail Province with sixteen complexes, Tabuk Province with fourteen complexes, Jazan Province with eleven complexes, and the Northern Borders Province with four complexes.

Regarding the sites of mineral belts in the Kingdom, their number reached thirty-five by the end of 2022. These are specific geological regions and formations that contain numerous mineral deposits, covering an area of more than 305,000 km², which is equivalent to 14 percent of the Kingdom's area. They are distributed across the Kingdom with nine belts in Makkah al-Mukarramah, seven in Aseer, six in Riyadh, five in Tabuk, four in al-Madinah al-Munawwarah, two in al-Bahah, and one belt each in al-Qassim and Najran. In terms of type, there are sixteen belts for gold, fifteen for sulfides, three for nickel, and one for zinc. The value of the raw mineral resources in these belts is estimated to be around 75 percent of the geological stock value in the Kingdom, which is estimated at SAR9.375 trillion (USD2.5 trillion).

The natural resources in the Kingdom are raw materials of economic benefit to the Kingdom. The Kingdom's geological diversity provides an abundance of natural resources, placing it third among the top ten countries globally in natural resource reserves, after Russia and the United States, with an estimated value of USD34.4 trillion.

The natural resources in the Kingdom are distributed according to their geological components. In the west, where the Arabian Shield, the Red Sea coastal plain, and volcanic fields are located, the most important mines and mining areas are concentrated. These areas produce essential and industrial minerals, on top of which are gold, silver, copper, and zinc, along with phosphate sites in the north of the Kingdom. In the east, where the continental shelf is located, there are extensive fields and refineries for both onshore and offshore energy resources, producing gas, oil, and their petrochemical derivatives.

The number of minerals discovered in the Kingdom reaches forty-eight, with at least fifteen of them having economic exploitation potential. The value of the untapped minerals is estimated at SAR9.375 trillion. The Kingdom exports minerals and related activities worth seven billion dollars. Overall, the mining sector provides approximately six hundred thousand direct job opportunities for the population in the Kingdom.

Raw materials in the Kingdom, or primary materials, are one of the natural resource wealth assets in the Kingdom. These products take the form of raw materials that are used in various industries within the production process. These materials can be renewable or exhaustible.

The Kingdom has successfully managed its resources in the minerals and mining sector, efficiently benefiting from these resource assets through various development plans. In the eighth plan, the mineral resources sector enhanced its capabilities in extracting and utilizing raw materials, as well as producing related manufactured and semi-manufactured products. The exploitation of raw materials increased from about 237 million t in 2003-2004 to about 325 million t in 2007-2008, with an average annual growth rate of 8.2 percent.

The classifications of mineral deposits or ores are varied, and these mineral deposits are widely distributed across numerous sites in the Arabian Shield. Most of the metallic mineral ores are found in the Precambrian rocks that make up the Arabian Shield in the western part of the Kingdom.

The Saudi Geological Survey undertook the exploration of minerals in the Kingdom. As a result of the surveying and exploration activities for metallic mineral ores in the rocks of the Arabian Shield, a large number of sites were identified. These include approximately 980 sites for gold, 610 sites for silver, 856 sites for copper, 477 sites for zinc, 282 sites for lead, seventy-six sites for nickel, 117 sites for chromium, and 176 sites for rare earth elements.

The Kingdom includes several mines and mineral deposits, including:

Mahd adh-Dhahab mine: Located in the western region of the Kingdom within al-Madinah al-Munawwarah Province. Mining operations are carried out using "underground or tunnel mining." Approximately 185,000 t of ore with a concentration grade of about ten g/t of gold are extracted and processed from the mine annually.

Sukhaybarat mine: Located in al-Qassim Province, approximately 250 km north of Mahd adh-Dhahab. Free or native gold is found in diorite rocks, around the edges of arsenopyrite crystals, and within its internal cracks, as well as in quartz veins and the edges of the veins. The production capacity of al-Sukhaybarat mine is six hundred thousand t per year.

Bulghah mine: Located within al-Madinah al-Munawwarah Province, sixty-five km south of the processing plant at Sukhaybarat, and includes an open-pit mining operation. The low-grade ore is processed at the washing and filtration plant at the mine, while the high-grade ore is sent to Sukhaybarat for processing. Its estimated annual production capacity is about 43,299 oz of gold.

Al-Amar mine: Located in Riyadh Province, southwest of the city of Riyadh. It is an underground mine where gold ore is processed at a rate of two hundred thousand t per year to produce gold in the form of a mixture of copper and zinc concentrates. Production began at the early of 2008.

Al-Hajar mine: Located in the southwestern part of the Kingdom near al-Aqiq Governorate in al-Bahah Province, it includes a washing and filtration plant. Gold is found in the form of fine free particles, with an estimated reserve of approximately five million tons, containing six kg/t of gold.

Zinc at al-Henakiyah: This site is located 170 km west of the city of Riyadh and contains approximately 5.1 million t of ore with 11 percent zinc and 0.88 percent copper. Approximately 145,000 t can be mined annually using the underground mining method.

Jabal Sayid: Located forty km north of Mahd adh-Dhahab and four hundred km northeast of the city of Jeddah. It contains the largest volcanic-associated base metal deposits in the Kingdom, with approximately twenty million t of ore. The ore can be extracted using the underground mining method at a rate of one million t per year.

Among other important mines in the Kingdom is ad-Duwayhi mine, located in the central part of the Arabian Shield, about 120 km southeast of the city of Zalim. It is a part of the Afif tectonic zone, which contains similar gold mineralizations found in mines such as al-Sukhaybarat and Bulghah. The ore reserve at ad-Duwayhi is estimated at approximately 13.5 million t with a concentration of about 4.2 kg/t, meaning the mine could produce a total of around 1.8 million oz of gold.

Ad-Duwayhi site has witnessed gold extraction activities for the past three thousand years, as evidenced by archaeological findings and the ruins of the mining village adjacent to the mine. The ancient mining activities were re-explored in the 1950s by geologists working at the Zalim mine. Ad-Duwayhi site was re-evaluated through extensive drilling in the early 1980s, yielding encouraging results. This led to ad-Duwayhi being classified as a primary exploration target in the 1990s.

During 1996-1997, the Ministry of Petroleum and Mineral Resources (currently the Ministry of Industry and Mineral Resources) developed a strategy to advance the mining sector and explore available opportunities. Efforts continued, leading to a significant transformation in the mining sector following the launch of Saudi Vision 2030. This vision aims to make mining the third pillar of the national industry. As a starting point for developing the sector, three strategic initiatives were launched, which include conducting geological surveys of the Kingdom, identifying investment opportunities in this sector, and studying potential incentives for its development.

Through Saudi Vision 2030, ambitious goals and a comprehensive strategy for the mining sector have been established in collaboration with the National Transformation Program. The vision aspires to set greater emphasis and expectations for the mining sector, expand the exploration and development of mineral resources, and increase the mining sector's contribution to the gross domestic product (GDP) to reach SAR97 billion, in addition to reviewing the procedures for obtaining licenses. Through the National Transformation Program, priority was given to adopting and implementing the comprehensive strategy for the sector, and setting the development of the mining sector as a priority initiative.

The Kingdom has several sites producing minerals in commercial quantities. In Hazm al-Jalamid, located in the northeast of the Kingdom, there are deposits of phosphate rocks. There are estimated reserves of approximately 313 million t of phosphate, in addition to bauxite deposits in the az-Zabirah region with estimated reserves of about 250 million t. Bauxite is being developed and mined to produce alumina with a production capacity of up to 2.4 million t annually, and aluminum with a production capacity of 650,000 t annually.

The Kingdom holds the world's largest phosphate reserves, as well as the largest gold reserves in the Middle East and North Africa. The central and northern regions also contain large quantities of bauxite ore, in addition to reserves of silver, zinc, copper, magnesium, and kaolin.

According to the preliminary estimates of the Ministry of Industry and Mineral Resources for 2020, gold production reached approximately 13,222 kg, silver production reached about 7,479 kg, and the Kingdom's production of copper concentrates increased to 92,915 t during the same year. Zinc production amounted to approximately 54,448 t.

Regarding other mineral ores, the total amount extracted in 2020 was estimated to be over 514,756 t of various mineral ores such as limestone, silica sand, salt, clay, feldspar, marble for industrial purposes, iron sand, kaolin, gypsum, marble blocks, granite, limestone, phosphate, bauxite, crusher materials, and ordinary sand used in construction and building works.

The Kingdom has organized mining databases across the geological map of the country and is working on updating them to monitor the quantities of minerals in various locations.

Mining data in the Kingdom is housed in the mineral occurrences database, which serves as the foundational information base for the country's mineral resources. This database contains detailed data on mineral resources and includes comprehensive information on geological surveys and exploration projects, such as geochemical surveys, geophysical surveys, geological mapping, and drilling activities associated with geological exploration at mineralization sites.

The National Geological Database for mineral occurrences includes various data, such as:

- The primary data of the mineralization site, including the geographical location of the site, the geological block in which the site is located, the type of mineralization, the exploration status of the site, and the significance of the mineralization site.

- Data on regional geological structures and the structural geological region in which the mineralization site is located.

- Data on the local geological structures of the mineralization site.

- Data on the stratigraphic sequence at the mineralization site.

- Data on the lithological composition of the mineralization site.

- Data on the type of mineral deposit at the mineralization site.

- Data on the types of mineralization discovered at the mineralization site, and data on the minerals within the mineralization zone at the site.

- Data on weathering and its types for the rocks at the mineralization site, and data on the minerals resulting from the weathering of the rocks at the mineralization site.

- Economic data for the metallic mineralization site, and descriptive data for the characteristics of the non-metallic mineralization site.

- Data on the types of geological surveying and exploration activities used for prospecting at the mineralization site.

- Data on ancient mining activities discovered at the mineralization site.

- List of published technical reports for the mineralization site.

- List of geologists involved in the exploration and data collection activities for the mineralization site.

The mining data activities in the Kingdom also include the project of producing the digital metallogenic map of the Kingdom, which began in 2008 and is still ongoing. This project aims to derive the relationship between the discovered mineral deposits in the Kingdom and the lithological, stratigraphic, and structural formations. It involves compiling, correlating, and interpreting technical information related to these discovered mineral deposits to accurately understand the geological setting, the nature of the sedimentary geological environments, and the geological processes that led to the deposition and formation of these mineral ores. The project also aims to estimate the geological ages of the mineralizations and determine their characteristics, as well as their geochemical and geophysical signatures.

The mining data system in the Kingdom includes the National Geological Database, which serves as the cornerstone for the Mineral Resources and Mining Information Management System. This information base contributes to increasing the value realized from the mining sector, being one of the fundamental pillars of the national economy and Saudi Vision 2030. It also provides investors and researchers in the fields of earth sciences and mining with access to the National Geological Database information online. The databases include detailed geological survey and exploration activities, mining data on the Kingdom's mineral resources, exploration information for resource evaluation, geological exploration and drilling activities, and available drilling data for state projects.

The National Geological Database aims to achieve several objectives, including:

- Unifying data and information on mineral resources and mining in the Kingdom.

- Developing and governing the infrastructure of the National Geological Database.

- Developing the mining sector and contributing to the increase in the country's GDP from its outputs.

- Increasing investment expectations and returns in the mining sector in the Kingdom by integrating the National Geological Database with relevant state entities.

- Providing documented and accurate information to government and private entities through a unified electronic portal that aids in decision-making.

- The National Earth Sciences Database performs several tasks related to mining activities, including:

- Retrieving geological data for various geological survey and exploration projects in the state from previously issued geotechnical reports and geological maps.

- Developing analytical tools in geographic information systems (GIS) and digital information solutions to enable decision-makers to manage and utilize the kingdom's mineral resources.

- Providing scientific entities and institutions interested in mining within the kingdom with base maps, geological maps, and other relevant data.

- Managing the National Earth Sciences Database by granting access permissions to individuals and institutions related to earth sciences inside and outside the Kingdom.

- Providing electronic services and spatial and digital data in both Arabic and English, and developing electronic dictionaries for scientific and technical terms used in mining, map production, and various earth science applications.

- Building and managing the electronic portal for the virtual digital library of national drilling information.

- Attracting and training Saudi personnel in the fields of geographic information systems (GIS) and their applications in earth sciences.

- Exchanging scientific information and data in the fields of geographic information systems (GIS) and remote sensing with government agencies, companies, geological and mining research centers, and institutions working in various earth sciences both locally and globally.

The Kingdom aims to develop mines and the mining sector and increase investment in it. Therefore, it established the Saudi Arabian Mining Company "Ma'aden" in 1997 as a Saudi joint-stock company with legal personality and independent financial liability, with a capital of SAR4 billion. It focuses on operating five gold mines, including Mahd adh-Dhahab, al-Amar, al-Sukhaybarat, Bulghah, and al-Hajar. The company is expanding its activities to include the development of phosphate, the aluminum project, and other projects involving base metals and precious metals.

This was followed by additional laws that enhance the development of the sector. The Mining Investment Law was issued under a royal decree in 2004, the Saudi Geological Survey was established following a Council of Ministers decision in 1999, and a Council of Ministers decision in 2004 mandated the privatization of Ma'aden. Additionally, the Foreign Investment Law was issued by a royal decree in 2000.

To enhance the efficiency of mineral resource management through national human resources, the Department of Mining Engineering was established at King Abdulaziz University in the academic year 1975. It is the only mining department across the universities in the Kingdom. The department aims to graduate mining engineers capable of planning and managing projects related to mining and metallurgical industries. The Mining Engineering program includes three main tracks: mine engineering, mineral processing, and mining project management and economics. Many graduates of the department are serving in major mining operations across the Kingdom.

As part of regulating mining activities in the Kingdom, the General Environmental Law of 2001 stipulates that the competent licensing authorities must ensure that environmental assessment studies are conducted during the feasibility study phase for any project that could have negative impacts on the environment. The General Environmental Law in the Kingdom emphasizes the need for periodic assessment of environmental impacts that may arise during the operations of exploration and mining companies. This is reinforced in the Mining Investment Law, which stipulates that all holders of a mining license, raw material quarry license, or small mine license must do the following:

- Submit an environmental study approved by the General Authority of Meteorology and Environmental Protection within thirty days of receiving the study, as specified by the regulations. This study requires the licensee to take all necessary measures and precautions at all times to preserve water sources, the environment, and wildlife, and to protect them from any hazardous waste or other environmental harm.

- Rehabilitate the licensed area, maintain it, and leave it in a sound and good condition.

- Preserve any archaeological sites within the licensed region, whether they are buildings, inscriptions, writings, drawings, or otherwise, and report them to the ministry.

The Kingdom has organized its mineral resources by issuing several regulations and guidelines for the mining sector, including the Mining Investment Law, the Mining Investor Guide, and the Executive Regulations of the Mining Investment Law.

The Mining Investment Law was issued in 2020, consisting of sixty-three articles. It defines mining as the process of extracting ores or valuable mineral formations from the land or marine areas, or other materials resulting from the evaporation of seawater or natural water supplies. This includes any direct or indirect mining activity that is necessary for this purpose. It defines deposits as naturally occurring minerals or ores which exist in economically viable quantities.

The law defines minerals as inorganic compounds, both metallic and non-metallic, with distinct chemical compositions and physical properties. They are classified into the following classes:

- Class (A): Metallic minerals, gemstones, semi-precious stones, and ores that require advanced processing and concentration as classified in the regulations.

- Class (B): Non-metallic minerals, industrial minerals, and raw materials as classified in the regulations.

- Class (C): Materials used for construction purposes as classified in the regulations.

Article Two of the law states that all deposits are the property of the state, and may not be claimed by a third party through lapse of time. This includes all kinds of ores, regardless of their forms or compositions, whether they are on the surface of the earth or in its interior, and this includes the state’s land territory and its maritime areas.

To support mining activities and investment in minerals, the law stipulates the establishment of a Mining Fund within the Ministry of Industry and Mineral Resources. The fund aims to provide sustainable financing sources for the development and support of mining activities and the sector. Its resources are composed of several sources, including: fees for licenses and services provided by the ministry, fines imposed in accordance with the law, surface rents, financial returns from tenders, donations, grants, and endowments.

The Implementing Regulations of the Mining Investment Law were issued by a royal decree in 2020, consisting of 166 articles. They aim to:

- Enhance the principles of governance in mining investment.

- Define mechanisms that enhance accountability, efficiency, effectiveness, and responsiveness in the application of the law.

- Establish clear procedures for licenses based on fairness and transparency to build trust in decision-making.

- Enhance the stability required for the development of mineral deposits to achieve benefits.

- Ensure the efficiency of operations conducted on mining activities.

- Establish effective mechanisms for dispute resolution.

The regulations consist of seven comprehensive chapters. The first chapter covers preliminary provisions, including definitions related to mining activities. The second chapter addresses licensing provisions. The third chapter focuses on sustainability. The fourth chapter deals with financial provisions. The fifth chapter covers oversight and inspection. The sixth chapter addresses violations, penalties, and dispute resolution. The seventh chapter includes miscellaneous provisions.

It is a guide published in English by the Ministry of Industry and Mineral Resources in 2022. It covers mineral exploration and mining in the Kingdom.

The guide reviews the current state and developments of the mining sector in the Kingdom, the Saudi vision for mining, and the mineral value chains in the Kingdom, which rank third after oil and petrochemicals. It also covers how to leverage the Kingdom's mineral resources, markets, and job growth.

The guide also provides an overview of the best available minerals in the Kingdom's mining sector, a summary of legislation, regulations, and licensing, types of mining licenses and their requirements, and how to obtain a mining license and establish a company in the Kingdom. Additionally, it covers applying to the Ta'adeen platform and accessing the National Database.

The overall strategy for the mining and mineral industries sector in the Kingdom, issued in 2018, aims to leverage mining and mining-related industries to achieve an added value chain from mining operations. This strategy aspires to make the mining sector the third pillar of the Kingdom's industry alongside oil, gas, and petrochemical industries. This sector will bring significant benefits to the Kingdom, society, and the private sector, ensuring sustainable development.

In line with best practices, the strategy has established global standards to preserve the environment, protect it from pollution, and safeguard the health of workers and the cities and villages near mining operations. The relevant entity will introduce new technologies to enhance environmental monitoring, ensuring sustainability. The strategy aims to achieve several objectives, including:

- Diversifying the GDP by increasing the contribution of non-hydrocarbon sectors through accelerating the development of the mineral value chain.

- Reducing the net trade deficit for mineral products, which are expected to grow in line with the GDP growth, thanks to the Kingdom's industrial development plans.

- Increasing the state's financial revenues by enhancing sector activities and improving the financial law for mining in the Kingdom.

- Generating job opportunities for citizens across different skill levels.

- Developing less-developed regions, a unique opportunity provided by the mining sector compared to other sectors that have primarily developed within urban areas in the Kingdom.

According to the strategy's vision, the following results are expected:

- Increasing the mining sector's contribution to the GDP from SAR64 billion to SAR188 billion by 2030.

- Reducing the net import value by SAR19 billion by 2030.

- Increasing annual government revenues by SAR11 billion by 2030.

- Generating 160,000 new jobs by 2030.

- Creating twenty thousand jobs in less-developed provinces.

To enhance the effectiveness of the strategy, mechanisms have been established to empower the mining sector through five main enablers, which are:

- Accelerating exploration and prospecting activities.

- Enhancing the economic feasibility of projects.

- Encouraging investment and improving sector structure.

- Enhancing the social benefits arising from the value chain.

- Increasing the sector's contribution to the state revenues.

To activate these five enablers, the strategy has outlined forty-two initiatives, along with an implementation plan and a timeline for the commencement of each initiative.

The Ministry of Industry and Mineral Resources has implemented a set of initiatives to improve and develop the mining sector in the Kingdom, the most notable of which include: launching the new investment law, establishing mining services companies, signing contracts for the General Program for Geological Survey, and inaugurating the National Geological Database, which contains information on more than 5,500 mineralized sites, geological survey, and exploration data spanning eighty years, and ten thousand technical reports. Additionally, fifty-four mining reserve sites have been designated.

The ministry also launched the "Ta'adeen" platform in 2019, aiming to provide licensing services to investors. Over 150 licenses have been issued, and more than 550 investors have been registered. The time required to renew licenses has been reduced from sixty to seven days, with the possibility of further reducing the renewal time to one day after integration with banks.

In an effort to develop the mining sector in the Kingdom and maximize its value, the Ministry of Industry and Mineral Resources established the Mining Exploration Incubator (Nuthree). This incubator aims to increase spending on exploration activities, support the Saudi geological database with more accurate information, increase the number of small national companies, and improve customer satisfaction. Other initiatives that have impacted the mining sector include:

- Launching technical and financial guidelines for obtaining mining licenses.

- Governance and digitization of government lands.

- Launching technical guidelines for the mining industries.

- Developing the construction materials licensing sector.

- Achieving sustainability in the mining sector.

- Developing governance and business models for the mining sector and building the necessary capacities.

- Saudi Mining Services Company.

- Approval and implementation of the comprehensive strategy for the mining sector.

- Amending the Mining Investment Law and the related regulations.

- Developing Ta'adeen Platform.

- Enhancing the beneficiary experience and transparency in the mining sector.

- Promoting investment in the mining sector.

- Studying the impact of energy and water on the mining sector.

- Establishing a Saudi professional authority for mining.

- Preparing and operating a technical support team to implement the strategy.

- Establishing a fund to support the mining sector.

- Developing national cadres and forces in the field of mining.

- Launching technical guidelines for the optimal use of mineral resources in the new project.

- Supporting the infrastructure and commercial regulations requirements of the mining sector.

- Creating an exploration incubator.

The Ministry of Industry and Mineral Resources is the entity responsible for mining and minerals in the Kingdom. The Deputy Ministry for Mineral Resources oversees mining activities in the Kingdom. It works to encourage investment in the mining sector, provide services and consultations to support this activity, and issue mining licenses and permits in accordance with the applicable regulations and laws.

The Ministry of Industry and Mineral Resources works on the discovery and exploitation of the Kingdom's mineral resources. It is mandated, for example, to issue mining licenses and collect fees for the exploitation of mineral ores. The industry and mining sectors are fundamental pillars of the Kingdom's economy. The ministry's strategy for developing these sectors includes forty-two regulatory and enabling initiatives, covering the initial stages of mining, intermediate stages such as processing and smelting, and concluding with the manufacturing of semi-finished and finished products.

According to Article Three of the Mining Investment Law, the ministry is the entity responsible for implementing the provisions of the law and overseeing its execution. In this capacity, the ministry is empowered to:

- Issue the regulations, forms, procedures, and guidelines necessary for implementing the provisions of the law.

- Formulate policies for the mining sector and oversee their implementation.

- Identify the lands and marine areas where licenses can be granted under the provisions of the law, in coordination with the Ministry of Energy where applicable.

- Determine the surface fees and financial compensation for licenses and services provided by the ministry, per the provisions of the law and what the regulations stipulate.

- Review applications for any rights granted under the provisions of the law and issue licenses granting those rights in accordance with its provisions.

- Collect fees, financial compensation, financial returns from tenders, surface fees, and fines as stipulated by the provisions of the law.

- Encourage research, development, planning, and investment in the field of mining activities.

- Strive to achieve the organized expansion of mining infrastructure and related services in a sustainable, efficient, and reliable manner.

- Coordinate with the authority to achieve the following:

a- Determining areas for mining reserves.

b- Developing and updating the National Geological Database.

c- Providing various maps, survey data, studies, and research necessary for mining investment.

- Coordinating with relevant entities to provide the necessary infrastructure facilities for mining areas, including roads, railways, ports, power stations, and energy and water supply lines.

- Integration and cooperation with relevant entities to monitor mining activity sites.

- Monitoring the occupational health and safety measures that the licensee must take.

- Coordinating with the Ministry of Interior to implement security instructions and safety and fire protection regulations issued by them in the field of mining activities.

- Supervising and monitoring all aspects of the licensee’s activities.

- Determining the content and form of any study, report, or guidance requested per the law or regulations.

- Developing, updating, and following up on development plans and programs for the mining sector.

- Identify ores, minerals, and elements that are not to be developed, are reserved for future discovery or exploitation, or are subject to special regulations.

- Qualify specialized companies or offices to undertake monitoring tasks and detect violations, as specified by the regulations.

The Saudi Industrial Development Fund contributes to supporting the expansion of financing the mining sector, considering it one of the key investment pillars targeted in Saudi Vision 2030. This is due to the Kingdom's abundance of untapped mineral resources and its strategic geographical location linking the three continents (Asia, Africa, and Europe).

The fund aims to finance the mining sector to develop the industry, increase its contribution to the non-oil GDP, and create more job opportunities. Additionally, it seeks to boost the flow of local and foreign investments into the Kingdom.

The Saudi Geological Survey was established in 1999 by Council of Ministers Resolution No. 115. The Saudi Geological Survey is directly linked to the Ministry of Industry and Mineral Resources. It has a legal personality and full capacity to achieve its specific organizational objectives.

The Saudi Geological Survey plays an important role in surveying, exploration, and prospecting for minerals and industrial rocks. It prepares maps and reports, conducts geological and hydrological studies, and works on creating and fostering investment opportunities in the mining and natural resources sector to create economic benefits and job opportunities.

The Saudi Geological Survey is an integral part of the Kingdom's industry and mineral resources ecosystem. While the Ministry of Industry and Mineral Resources is the main authority for creating, maintaining, and facilitating access to geological data in the Kingdom, the Saudi Geological Survey is the primary entity responsible for operating the Geological Database Portal. This portal contains geophysical information and the national geological, geochemical, and geological databases of the Kingdom. The portal includes a variety of geological information related to mining and minerals, including:

Geophysical Information: The Kingdom has geophysical data available for most parts of the Arabian Shield, with only a portion of this data integrated into the portal.

Geochemical Information: The Kingdom has geochemical data, such as chemical analysis of samples using X-ray fluorescence and inductively coupled plasma mass spectrometry. These data are available for the entire Arabian Shield, with only a portion integrated into the portal.

Geological Maps: 1:250,000 scale maps are available for most parts of the Kingdom.

National core library: The Kingdom has a national repository for data on drilling sites and physical copies of drill samples. The Saudi Geological Survey is responsible for digitizing this data and integrating it into the portal.

The Kingdom has several advantages in the mining sector. It is the largest country in the Middle East, with an area of approximately two million km², and ranks thirteenth among the largest countries in the world. It is a significant source of precious and major minerals.

The Kingdom has untapped mineral investments worth approximately USD2.5 trillion, with more than fifteen commercially viable types of minerals. The estimated total value of the Kingdom's mineral resources is as follows: silica, limestone, and other minerals at USD140 billion; copper at USD222 billion; phosphate at USD321 billion; uranium at USD70 billion; iron ore at USD70 billion; zinc at USD138 billion; gold at USD229 billion; silver at USD37 billion; and niobium at USD41 billion.

Exploration and mining activities in the Kingdom began seven years after its unification by the founding King Abdulaziz Bin Abdulrahman Al Saud. The Kingdom works on investing in non-metallic minerals to achieve returns from them, which include:

Phosphate: Phosphate ore deposits were discovered in the northern part of the Kingdom in 1960. The inferred reserves of phosphate ore are estimated to be more than three billion t. Production is expected to reach nearly three million t of diammonium phosphate annually.

Bauxite: Bauxite reserves are concentrated in az-Zabirah mine between Hail and al-Qassim provinces, with estimated reserves of over 252 million t.

Limestone and dolomite: Limestone and dolomite rocks are used in a wide range of industries, most notably in cement manufacturing. They are extracted from quarries in various regions where these rocks are exposed.

The Kingdom has expanded its mineral exploration due to its significant economic returns. In the early twenty-first century, large quantities of phosphate were discovered in the northern province of Hazm al-Jalamid. This discovery positioned the Kingdom to potentially become the world's leading producer of phosphate materials starting in 2020, according to projections for Hazm al-Jalamid site. The Kingdom invested USD8 billion to develop the project and to utilize and manufacture phosphate.

To develop exploration and production activities, Ma'aden Phosphate Company operates at two main sites: Hazm al-Jalamid in the northern part of the Kingdom, where the phosphate mine and a beneficiation plant are located, and Ras al-Khair in the Eastern Province, which hosts an integrated plant for producing fertilizers and chemicals. The company invested in the infrastructure at al-Jalamid mine site by establishing a power plant, facilities for producing and treating potable water, a communication network, and a transportation network to facilitate exploration and production operations.

Hazm al-Jalamid site contains 7 percent of the world's phosphate reserves, with an estimated 2.7 billion t. The mine at Hazm al-Jalamid produces approximately 11.6 million t of phosphate ore annually, which is transported via railway to Ras al-Khair in the Eastern Province. Ras al-Khair hosts phosphate fertilizer plants and the Ras al-Khair port for export.

The Saudi Arabian Mining Company "Ma'aden" holds a prominent position among mining companies worldwide and is focused on developing mineral resources in the Kingdom. Its activities focus on gold mining, operating five gold mines: Mahd adh-Dhahab, al-Hajar, al-Sukhaybarat, Bulghah, and al-Amar.

The company is expanding its activities beyond gold mining, working on the development of phosphate and aluminum projects, as well as copper concentration operations. Additionally, since its inception, Ma'aden has collaborated with the government and local regulators to establish a regulatory framework for organizing and managing the mining industry in the Kingdom.

Aiming to achieve suitable returns and increase the Kingdom's income from mining, the Council of Ministers approved in 2012 the establishment of an industrial city in the Northern Borders Province named Wa'ad al-Shamal Industrial City for Mining Industries. An adjacent area of 150 km² was allocated for Ma'aden's phosphate industries and other related projects. Additionally, Wa'ad al-Shamal Industrial City for Mining Industries was connected to the North-South Railway and equipped with appropriate wagons for transporting phosphoric acid, raw sulfur, and other project products to and from Wa'ad al-Shamal Industrial City.

The mining sector plays a significant role in the economic development of the Kingdom. According to figures from the Ministry of Industry and Mineral Resources, the Kingdom's revenues from mining reached approximately SAR4.9 billion, as recorded in the fifty-seventh annual report of the Saudi Central Bank for 2021.

The Kingdom aims to increase the contribution of the mining industry to the Kingdom's GDP to SAR240 billion and raise the Kingdom's revenues from the sector by more than SAR8.9 billion. Factories engaged in the production of non-metallic mineral products constitute the largest industrial activities in the Kingdom in terms of the total number of existing factories, with approximately 1,984 factories. The number of direct and indirect jobs in this sector reached around 150,000, most of which are in intermediate and manufacturing industries.

Mining activities have developed across various regions of the Kingdom, with a number of modern mining projects recently coming online and being utilized. These projects include:

- Az-Zabirah mine for the production of bauxite ore, which is used in the cement and ceramics industries, was established in 2008.

- The phosphate project, signed between Ma'aden and SABIC, with an estimated investment value of USD5.5 billion, began actual production in 2011.

- The integrated aluminum complex, which is the first and largest high-efficiency, fully integrated aluminum manufacturing complex in the world, is located in Ras al-Khair Industrial City, with an investment of SAR41 billion.

- Alumina refinery which started in 2014.

In 2014, Barrick Gold Corporation acquired a 50 percent stake in the Jabal Sayid copper and platinum mine, located 120 km southeast of al-Madinah al-Munawwarah. The remaining 50 percent is owned by Ma'aden. The mine produces between 45,000 and 59,000 t of copper concentrate annually. In 2019, Barrick Gold Corporation's share of production from mining operations in the Kingdom amounted to USD83 million worth of copper.

In 2019, Tronox, a global mining and inorganic chemicals company, purchased a 90 percent stake in the titanium dioxide business unit of the National Titanium Dioxide Company Limited (Cristal). Notably, the National Industrialization Company (Tasnee), a listed Saudi joint-stock company, owns a 79 percent stake in Cristal, while the Gulf Investment Corporation holds the remaining 20 percent stake in Cristal. Cristal operates a smelter in the southwest of Jazan City with a production capacity of up to five hundred kt of titanium dioxide and 220 kt of cast iron.

In 2018, the output from mining increased in the production of gold, silver, and their associated metals from licensed mining sites at Mahd adh-Dhahab, al-Sukhaybarat, al-Hajar, Bulghah, and al-Amar mines. Gold production reached 12,905 kg, and silver production reached 5,760 kg. Additionally, the Kingdom's production of copper and zinc concentrates increased by 250.9 percent and 92.6 percent, respectively, in 2018.

The development and growth also included other mineral ores. In 2018, the total amount of extracted mineral ores exceeded 516 million t. These included limestone, silica sand, salt, clay, feldspar, industrial marble, iron sand, kaolin, gypsum, marble blocks, granite, limestone, phosphate, bauxite, crusher materials, and ordinary sand used in construction and building works.

The Kingdom has provided several incentives for investing in raw materials, which have received significant economic and investment attention from the Kingdom agencies as natural resources that support economic growth. Therefore, numerous leading and vital sectors have been targeted by the objectives of Saudi Vision 2030 to empower them with several special programs and development strategies. This has resulted in a substantial diversity of sectors with attractive competitive advantages and significant investment opportunities. One of the most notable aspects is the abundance of raw materials in Saudi soil.

The Saudi Industrial Development Fund has expanded its financing of the mining sector by funding mining projects for all types of minerals, covering up to 75 percent of the project's eligible costs. It also finances the final phase of exploration activities, including drilling and mine preparation, and supports ancillary service companies that contribute to increasing the added value and sustainability of the mining sector in the Kingdom.

The mining sector has experienced significant growth alongside the development of mining activities and the national economy. By the end of 2018, the total number of mining licenses had reached 2,045, with sixty-nine licenses issued for small mines for various industrial mineral ores such as silica sand, gypsum, salt, limestone, clay, pozzolan basalt, industrial marble, low-grade iron (for cement manufacturing), dolomite, feldspar, silica sand, barite, sandstone, perlite, and pyrophyllite.

Mining activities expanded as returns increased, maximizing the utilization of raw materials in the Kingdom. In 2018, the number of mining licenses and raw material quarries reached ninety-four licenses for various metallic mineral ores such as gold, copper, zinc, iron, phosphate, associated minerals, and gemstones like peridot. Additionally, there were 1,342 licenses for building material quarries, exploiting various construction materials such as sand, crusher materials, and decorative stones.

By the end of 2020, the total number of mining licenses reached approximately 2,062. These included sixty-nine licenses for small mines for various industrial mineral ores such as silica sand, gypsum, salt, limestone, clay, pozzolan basalt, industrial marble, low-grade iron (for cement manufacturing), dolomite, feldspar, barite, sandstone, perlite, and pyrophyllite. There were thirty-three mining licenses and seventy licenses for raw material quarries, covering various metallic mineral ores such as gold, copper, zinc, iron, phosphate, associated minerals, and gemstones like peridot.

By the end of January 2024, the total number of active mining licenses in the sector reached 2,383. These included 1,513 licenses for building material quarries, 613 exploration licenses, 195 mining and small mine exploitation licenses, thirty-seven reconnaissance licenses, and twenty-five surplus mineral ore licenses.

It is an electronic platform designed to accelerate and facilitate investor procedures. This unified electronic services and information platform supports the investor's journey by streamlining processes and providing mining information and data.

The platform is characterized by its speed in processing, increased reliability of information, and reduced time required to provide mining investment services. It simplifies and streamlines procedures, enhances transparency, and protects investor rights. The abundance of information and ease of access attract investors and promote growth in the mining sector.

The platform aims to achieve a strategic goal of maximizing the value derived from the mining sector and utilizing it effectively. Its ultimate goal is to be a comprehensive electronic information and service platform.

Statistics from the platform for January 2024 highlight the key achievements of the industrial and mining sector in the Kingdom. The total number of industrial establishments reached 11,672, with the platform issuing 152 new licenses, representing an investment value of SAR6.2 billion. Additionally, there were 599 exploration licenses, 1,496 building material quarry licenses, and 2,335 mining licenses.

The production operations had a significant impact on the Kingdom's export revenues in 2018. Exports of raw materials ranked first, reaching SAR722.1 billion (371.8 million t), accounting for 65.4 percent of total exports, representing an increase of 36.7 percent compared to 2017. Exports of manufactured goods ranked second, amounting to SAR198.7 billion (75 million t), accounting for 18 percent of total exports, and showing an increase of 21.3 percent compared to 2017.

The Kingdom has organized its raw material resources and incorporated them into various regulations related to their production and processing. In the National Industries Protection and Encouragement Law, issued by royal decree and Council of Ministers resolution in 1961, Article Five states: Primary raw materials, semi-finished materials, and packaging bags, boxes, and cylinders necessary for industrial establishments are exempt from customs duties, provided there is no equivalent that is sufficiently available in the Kingdom.

The regulation of the Saudi Export-Import Bank also supports investment activities in raw materials. Article Four of the regulation, issued by a Council of Ministers resolution in 2020, states: Without prejudice to the powers and responsibilities of other government entities, the bank, to achieve its objectives, may carry out the necessary tasks and responsibilities to serve its established purposes, including financing the importers of raw materials to create added value and re-export.

Care for raw materials also included creating transportation channels to global markets. For this purpose, several specialized facilities were established, including the King Fahd Industrial Port in al-Jubail, which was inaugurated in early 1982. The port was designed for importing raw materials needed by local industries and exporting industrial products such as petrochemicals, refined petroleum products, chemical fertilizers, and sulfur.

Resource sites from fields and mines are connected to major surrounding cities through networks of highways and railways to the capital, Riyadh, or Dammam, and to exporting seaports or dry ports. These include King Abdulaziz Port, Ras al-Khair Port on the Arabian Gulf coast, Riyadh Dry Port, King Fahd Industrial Port in Yanbu, and King Fahd Industrial Port in al-Jubail on the Red Sea coast.