MAKKAH, 9 December — The Council of Ministers recently approved a gold mining concession in the Balgha region in Madinah province to the Saudi Company for Precious Metals.
The 39 sq km area, situated 67 km to the southwest of Al-Sukhairat mines, can be exploited by the mining company for 25 years, starting from the date of the issuance of the royal decree in this connection. The company will also have the right to renew or extend the period of the mining rights for a period not exceeding 20 years without violating other regulations governing mining in the Kingdom and in compliance with the terms in the deed for the concession.
The deed contains 26 clauses including exclusive right to manufacture and invest in all the area or part of it. The clauses also defined that the rights over the surface land included taking out the raw mineral underneath. However, the concessions do not allow the company to transfer its mining rights to others.
The company should give priority to employ and train Saudis in all areas of the mining process. The company should also prefer Saudis when choosing contractors and importers to supply the required material and services.
The terms of the concession specify that the mining company should prepare half-yearly reports on its activities until the mines are ready for production. After the mines are commissioned, the company should prepare annual reports with details and statistics related to the production. The reports should also include changes or proposals for future manufacturing programs and should be submitted to the Ministry of Petroleum and Mineral resources.
The company should not, according to the terms, disturb the ecological balance in the area. Archeological sites should be protected and there should be no damage to ancient inscriptions, engravings or buildings. If new archeological sites are discovered during the company’s digging and other operations, the concerned department should be notified immediately.
The company has also the right to surrender its rights after the expiry of one-fourth of the concession period by serving a six-month notice to the ministry. Any dispute between the company and the ministry will be settled according to clause 55 of the mining regulations.
