Intensive regulatory efforts to support the mining sector
In a move reflecting Saudi Arabia’s commitment to regulating and developing its mining sector, the Ministry of Industry and Mineral Resources, represented by the Agency for Supervision of Mining Operations, announced the execution of 311 field inspection tours of various mining sites across the Kingdom during December. The Eastern Province topped the list of regions most frequently inspected, with 92 tours, underscoring the region’s strategic importance within the Kingdom’s mining landscape.
Strategic background: Mining as a third pillar of national industry
These inspection tours are part of a broader strategy adopted by the Kingdom within the framework of Vision 2030, which aims to diversify national income sources and reduce dependence on oil. The mining sector is considered the third pillar of national industry, after the oil and petrochemical sectors. The Kingdom has enacted the new Mining Investment Law and its implementing regulations to create an attractive and transparent investment environment, encourage local and foreign investment, and ensure the application of the highest environmental and social sustainability standards. The value of untapped mineral resources in the Kingdom is estimated at approximately SAR 9.3 trillion (USD 2.5 trillion), distributed across more than 5,300 sites, opening up promising prospects for economic growth.
Tour details and geographical distribution
The Ministry's official spokesperson, Professor Jarrah Al-Jarrah, explained that the inspections covered multiple regions to ensure comprehensive compliance with regulations. In addition to the Eastern Province, the Riyadh region saw 85 inspections, followed by the Asir region with 51, and the Madinah region with 42. The inspections also covered the Tabuk region (18), Makkah (9), Hail (6), and Najran (5), in addition to individual inspections in Jazan, Al-Baha, and Al-Jawf. Al-Jarrah emphasized that the Ministry follows the principle of "warning before penalty," whereby warnings are issued to non-compliant sites to rectify their situations before any fines are imposed, thus strengthening the relationship between the regulatory body and investors.
Importance and expected impact
The importance of these regulatory campaigns lies in ensuring the protection of the sector from irregular practices that could harm the environment or squander national resources. Locally, these efforts contribute to protecting communities near mining areas and ensuring the optimal utilization of resources, which positively impacts job creation and the growth of non-oil revenues. Regionally and internationally, the Kingdom's commitment to implementing stringent regulations enhances its reputation as a reliable investment destination in the mining sector, attracting major global companies to invest in the exploration and development of strategic minerals essential for advanced industries and clean energy technologies, thus solidifying the Kingdom's position as a key player in global mineral supply chains.
