Nabeel A' Ekram

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Business Opportunities in the Mining Sector in
Saudi Arabia
Presented by Nabeel A. Ekram Ministry of
Petroleum and Mineral Resources Deputy Ministry
for Mineral Resources (DMMR)
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Presentation Outline

• Saudi Arabia has mineral development potential
• Exploration activities in Saudi Arabia
• What has the Ministry of Petroleum and Mineral
  Resources done to exploit Saudi Arabias mineral
  potential?
• Proactive approach by the Deputy Ministry for
  Mineral Resources for potential business partners

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Mineral Potential In Saudi Arabia
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Main Geologic Units of Saudi Arabia
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Areas of High Mineral Potential
Red Sea
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Major Mineral Deposits
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Main Occurrences of Industrial Minerals
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Main Occurrences of Ornamental Stone
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Exploration Activities in Saudi Arabia
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Growth of Exploration Licenses1994-2004
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Location Map of Existing Exploration Licenses
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Exploration Expendituresin 2004 (US Millions)
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What has the Ministry of Petroleum and Mineral
Resources done to exploit Saudi Arabias mineral
potential?
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Changes at the Ministrys Level
Mining Investment Code
Regulations
MISC
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Mining Investment CodeObjectives

• Increase the participation of mining activities
  in the development of national
• economy
• Attract investment into mining sector
• Streamline administrative procedures
• Ensure clear and transparent conditions of
  licenses
• Set clear rights and obligations of licenses
• Remove all obstacles encountered by investors in
  mining sector
• Safeguard the environment
• Increase revenue to the State and diversification
  of income

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Mining Investment CodeMain Incentives (1 of 2)

• Transparency
• Equitable treatment of all investors
• Renaming all concessions licenses to facilitate
  procedures
• First-come first-served principle
• Removal of technical and financial qualifications
  for reconnaissance and exploration licenses
• Reducing the area of exploration licenses from
  10,000 km2 to 100 km2
• Setting specific time periods for issue of
  license (15-60 days)

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Mining Investment CodeMain Incentives, (2 of 2)

• Deletion of advance payment and profit sharing
  clauses
• Income tax liability 20 according to the Income
  Tax Code
• The imposition of nominal severance fees on Saudi
  investors to give an equal treatment to Saudi and
  non-Saudi investors
• Investors will benefit from the Income Tax Law
  and Foreign Investment Law including amortization
  of exploration expenditures and carry forward of
  losses
• Investor can obtain more than one license

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Types of Licenses

• Licenses which give mining rights are divided
  into two groups
• Non- Exploitation Licenses
• Reconnaissance License
• Exploration License
• Material Collection License
• Exploitation Licenses
• Mining License
• Raw Material Quarry License
• Small Mine License
• Building Materials Quarry License

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Time Periods for Processing of Applications
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Registers of Applications and Licenses

• Register of Applications
• Date of application
• Type of license
• Particulars of the applicant
• Minerals applied for
• Duration
• Location, size and coordinates

• Register of Licenses
• License number
• Date of issue of license
• Type of license issued
• Minerals licensed
• Duration
• Location, size and coordinates

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Proactive Approach by the Deputy Ministry for
Mineral Resources for Potential Business Partners
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Mining Investment Service Center (MISC)

• One Stop Shop
• Key coordinator of all business opportunities
  promotion
• Simplify procedures for all foreign and local
  exporters and service providers
• Assist with entry visas, work permits,
  import/export license applications, and company
  registration

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(No Transcript)
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What are these Opportunities?
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Thank you
Deputy Minister Phone [phone] Fax
(966-2) 667-2265 Email deputyminister_at_dmmr.gov.sa
Mining Investment Service Center Phone (966-2)
661-1458 Fax [phone] E-mail
misc_at_dmmr.gov.sa www.dmmr.gov.sa