Saudi Arabia's executive regulations on mining investments came into effect on Jan. 1, the official gazette reported.
The regulations aim to enhance the principles of mining investment governance, and identify the mechanisms that boost responsibility, efficiency, effectiveness, and response to the law application. They also lay down clear procedures for the licensing based on fairness and transparency in order to build confidence in decision-making.
In addition, the regulations aim to achieve the stability required to develop mineral deposits, ensure the efficiency of mining operations, and set effective mechanisms for dispute settlements.
The regulations stipulate that the minister, after coordination with the relevant government agencies, can allocate any land or sea area as a mining reserve based on valid mining licenses.
According to the regulations, the licensee with an exploitation license has the right to export minerals and ores for commercial purposes after carrying out industrial processing operations and removing impurities in order to use the processed minerals in industry or other purposes.
Minerals and ores of category (B) may be exported for commercial purposes, provided that 10% of the net sales of the exported minerals or ores are paid. The export percentage should not exceed 30% of the average annual actual production capacity before processing the ores. The minister or whomever he delegates may increase this percentage as appropriate.
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