Arab News, Monday, Jan 16, 2023 | Jamadi Al Thani 23, 1444
Saudi Industry and Mineral ministry signs MoU with DGDA to regulate mining business
Saudi Arabia’s Ministry of Industry and Mineral Resources and the Diriyah Gate
Development Authority have signed a memorandum of understanding to regulate the
country’s mining businesses, Saudi Press Agency reported.
Under the MoU, both parties will enhance
cooperation in all common fields that serve the various sectors related to
regulating mining works in the Kingdom.
The MoU was signed in the presence of the Deputy
Minister of Industry and Mineral Resources for Mining Affairs Khalid bin Saleh
Al-Mudaifer, as well as the CEO of the Diriyah Gate Development Authority Gerard
Inzerillo, on the sidelines of the second edition of the Future Minerals Forum
The new MoU comes in line with the ministry’s
efforts aimed at preserving the natural resources in the Kingdom and maximizing
their utilization, SPA reported, citing the Undersecretary of the MIMR for
Mining Services Saleh Al-Aqili.
Cooperation and coordination between both parties
are crucial to ensure that the exploitation of mineral ores meets the desired
results, Al-Aqili added.
Both the MIMR and the Diriyah Gate Development
Authority will work to develop mechanisms to help monitor violations within the
supervisory scope of the authority, he explained.
When it comes to the relevant regulations, both
parties will search for the best ways to apply them as required to achieve
common goals and to identify the areas of licenses that fall within the scope of
supervision, SPA reported, citing the head of the municipal affairs and urban
planning sector of the Diriyah Gate Development Authority Ahmed Al-Sharif.
Both parties will also be sharing the relevant
data and studies, including exchanging geotechnical and geophysical data and
studies, to locate quarries to obtain the necessary materials for building the
authority's projects of a unique urban character.
Currently, the Kingdom is processing 145
exploration license applications sent in by foreign companies, according to the
According to geological surveys dating back 80
years, the Kingdom is thought to have an estimated reserve of untapped mining
potential valued at $1.3 trillion.
However, with the prices of valuable minerals
rising, especially gold, copper and zinc, the true value of the Kingdom’s
current mineral wealth could be double that figure, CEO of the Saudi Geological
Survey Abdullah Al-Shamrani said in September 2022.