Saudi Arabia to jail illegal miners for two years, SAR1mn fine

The Saudi Ministry of Industry and Mineral Resources said it would implement the royal decree to add a new article to the mining investment system which stipulated the jail term and fines.

“Both or one of these two penalties [will be meted out] for anyone who exploits deposits to sell them, or who carries out excavation work to search for or exploit category (A) minerals,” the ministry said.

The ministry said the new article also 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 is to reduce the act of random exploitation of mineral deposits in Saudi Arabia, preserve the environment and ensure optimal exploitation of mineral resources.

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 said the penalties will be applied to the perpetrators of these crimes and their allies.

“As 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,” it said.

The ministry said the minerals covered under the new article include general deposits such as ordinary sand, gravel materials, landfill materials, granite, and all industrial raw materials, 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.

Saudi Arabia’s 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 in order to attract qualitative local and international investments.