New Penalties for Non-Compliance
Saudi Arabia’s Ministry of Industry and Mineral Resources has announced new penalties for mining companies that fail to employ qualified Saudi personnel. According to the newly released penalties guide, mining firms must hire a Saudi employee who meets specific qualifications, including certification as a mining supervisor and continuous presence at the license site during operating hours.
Warning and Violation Notices
Initially, companies that do not comply will receive a 15-day warning. If the issue is not rectified within this period, they will be issued a notice of violation. Failure to address the violation within 30 days will result in a fine of 5,000 riyals. If the non-compliance continues, the penalty will increase to 10,000 riyals for subsequent violations.
Detailed Penalties Guide
The penalties guide outlines nine primary offenses, which branch into 22 specific penalties depending on the raw material category. Fines range from 1,000 riyals to a maximum of 100,000 riyals and escalate through three stages before cases are referred to the committee for further action.
Offenses Requiring Legal Action
Two offenses will necessitate referral to the Public Prosecution. The first involves exploiting mineral ores beyond the limits of the issued detection license. Companies will face a 50,000 riyals fine if corrections are not made within 30 days after an initial warning. Persistent violations will result in referral to the Public Prosecution.
The second case requiring legal action involves exploiting more than 50 percent of the licensed area or mining in unauthorized locations. A 200,000-riyal fine will be imposed if corrections are not made after a warning and notice of violation. Repeated offenses will also lead to referral to the Public Prosecution.
Additional Offenses
Other mining-related offenses include delays in submitting mining declarations, incomplete declarations, overdue financial compensation, and providing misleading information to the Ministry. Additionally, fines will be imposed for exploiting materials outside the licensed limits or continuing expired rights under the exploitation license.
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