Saudi Arabia new mining law
Saudi Arabia’s cabinet approved a new mining law, intending to boost investment in the sector.
A law that aims to accelerate foreign investment in the mining sector as part of efforts to diversify its economy away from hydrocarbons. The new law facilitates investor access to financing and supports exploration and geological survey activities. Riyadh’s efforts to build an economy that does not largely rely on oil and state subsidies involves a shift toward mining vast untapped reserves of bauxite, the main source of aluminum, as well as phosphate, gold, copper and uranium. The energy ministry estimates the kingdom’s unused mineral resources to be valued at 5 trillion riyals ($1.33 trillion).
In April, the cabinet approved setting up a state-owned, joint-stock company for mining services. Currently Saudi company Ma’aden is the kingdom’s sole miner, producing gold and copper and has in recent years expanded into the production of aluminum and phosphates.