A mining and metal license in Saudi Arabia is a legal record that permits individuals or businesses to explore, extract, and sell mineral resources within a designated area within the country. The Department, such as the Ministry of Energy, Industry, and Mineral Resources, is responsible for issuing mining license in Saudi Arabia.
How do you get a Mining license in Saudi Arabia?
The process of obtaining a mining license in KSA involves several steps, including preparing a detailed application that outlines mineral resources, areas of interest, and proposed exploration activities and applying to the Ministry of Industry and Mineral Resources. The process continues with technical evaluation and approval by the Ministry, which would issue the mining license to the applicant.
Mining license application process
The details of the mining license application process in Saudi Arabia are the following:
- Step 1: Project Evaluation & License Recommendation
We begin by reviewing your mining initiative to identify the most suitable permit based on your specific goals and the regulatory framework in Saudi Arabia.
- Step 2: Business Formation & Trade Name Registration
Next, we assist in forming your legal entity and securing approval for your trade name through the Ministry of Commerce.
- Step 3: Application Submission
Once your documents are prepared, we submit the complete application to the Ministry of Industry and Mineral Resources for processing.
- Step 4: Site Assessment or Technical Review
Depending on the license category, authorities may conduct a site inspection or a technical assessment to validate the feasibility of your project.
- Step 5: License Approval & Issuance
Following a successful evaluation, the mining license will be granted, officially authorising you to commence operations by Saudi regulations.
Required Documents for Applying for the Mining License in Saudi Arabia
- A valid Commercial Registration (CR) certificate copy
- Passports and identification documents of all investors or shareholders
- Geological assessment or feasibility report (applicable for exploration permits)
- A comprehensive business proposal detailing operational activities
- Environmental Impact Assessment (EIA) report
- Documentation demonstrating financial strength and the origin of investment funds
- Evidence of land ownership or a legally binding lease for the designated mining site
Fees and Timeline
- License Fees: Varying fees for different types of licenses (e.g., exploration, mining, processing).
- Timeline: The licensing process typically takes several months to a year or more, depending on the complexity of the application.
Mining License Requirements in Saudi Arabia
- A certified and embassy-stamped copy of the commercial registration for any shareholding partner is mandatory. The Saudi Embassy must authenticate this.
- For GCC nationals whose details are not available in the ABSHAR system, a copy of their national ID must be provided.
- The latest audited financial report of the foreign company for the most recent fiscal year is also required. This document must be certified by the Saudi Embassy.
Regulatory Guidelines:
- The capital contribution of the Saudi partner must align with the ownership percentage specified for the business activity, as per financial regulations.
- Partners holding Premium Residency status are exempt from submitting the above documents.
- If the Ministry of Investment has previously licensed any partner, this must be mentioned when inputting their information into the online portal.
- Depending on the partner’s classification, you must include either their Saudi national ID, Premium Residency ID, or commercial registration details when completing the digital application.
Saudi Mining Investment
Saudi Arabia is actively promoting its mining sector to attract foreign investment. The country is estimated to have $1.3 trillion worth of mineral resources, including gold, copper, zinc, and iron ore.
Investment Opportunities
- Gold Mining: Saudi Arabia has significant gold reserves, with the Mahd Adh Dhahab mine being one of the largest gold mines in the country.
- Copper Mining: The country has several copper deposit mines, including the Jabal Sayid copper mine, which is operated by Barrick Gold.
- Industrial Minerals: Saudi Arabia has significant deposits of industrial minerals, including limestone, dolomite, and silica sand.
- Phosphate Mining: The country has significant phosphate reserves, with the Ma’aden Phosphate Company being a major player in the industry.
Investment Incentives
- Tax Incentives: The Saudi government offers tax incentives to mining companies, including exemptions from income tax and customs duties.
- Low Energy Costs: Saudi Arabia has some of the lowest energy costs in the world, making it an attractive place for energy-intensive mining operations.
- Infrastructure Support: The government invests heavily in infrastructure development, including roads, ports, and rail networks, to support the mining industry.
- Streamlined Regulations: The Saudi government has implemented streamlined regulations to facilitate foreign investment in the mining sector.
With the Saudi government expected to continue investing in the mining sector and with streamlined regulations, the industry is poised to attract more foreign investment.
How can the Helpline Group in Saudi Arabia help?
Helpline Group, backed by a strong and experienced team, brings over 25 years of expertise in services such as company formation—including the setup of mining businesses in Saudi Arabia. We offer a seamless experience for clients, including foreign investors, by providing end-to-end guidance, from securing the necessary mining license in Saudi Arabia to achieving full operational setup.
With a global presence and a tailored approach, we ensure that your business setup is handled with precision and professionalism, making us your reliable ally in achieving success.
