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Friday, Aug 08, 2025

Unlicensed exploitation of minerals subject to 2-year jail penalty and SR1m fine

Unlicensed exploitation of minerals subject to 2-year jail penalty and SR1m fine

The Ministry of Industry and Mineral Resources has revealed implementing the Royal decree to add a new article to the mining investment system, which includes penalties of up to two years in prison and a fine not exceeding one million riyals, or one of these two penalties for anyone who exploits deposits to sell them.
The penalties would also apply to those who carry out excavation work to search for or exploit category (A) minerals, with the ministry stressing that the article stipulates that the maximum penalty may be doubled in case of recurrence of committing any of the stipulated crimes.

The ministry said that the decision to add this new article to the mining investment system comes to reduce the act of random exploitation of mineral deposits in the Kingdom, preserve the environment and ensure optimal exploitation of mineral resources.

The ministry added that the decision also supports the provisions contained in the new mining investment system that support environmental sustainability and the protection of neighboring areas of the irregular practices that may harm the environment and the surrounding communities.

The decision also stresses the importance of preserving the rights of investors who have legal licenses and providing them with an appropriate and fair investment environment.

The ministry confirmed that penalties will be applied to the perpetrators of these crimes and those who participated by way of agreement, incitement, or assistance in committing any of the aforementioned crimes with the prescribed penalty.

The ministry added that, per the system, whoever is found guilty of committing these crimes will return the money subject of the crime or refund its value or any proceeds resulting from this money.

The ministry highlighted that the minerals included in this decision include general deposits such as ordinary sand, gravel materials, landfill materials, granite, and all industrial raw materials.

This is in addition to gold, silver, copper, zinc, lead, iron ore, precious and semi-precious stones and ores that need advanced operations and concentration as classified in the regulations.

The mining investment law emphasizes transparency and providing fair opportunities for investors, through clear policies and legislation, controlling violations and punishing violators to ensure a fair investment environment, capable of attracting qualitative local and international investments.
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