Saudi Arabia has issued mining licences worth $66 billion to major private sector players in the kingdom, said the country's energy, industry and mineral resources minister.

"The number of licences granted by the ministry to the private sector is approximately 2,000 covering about 70,000 sq km," remarked Khalid bin Abdulaziz Al Falih.

He was speaking at a meeting with the Russian Minister of Natural Resources and Environment Sergey Donskoy in Moscow.

Saudi Arabia's mining sector is fast expanding, as the third pillar of the the country's economy, at a projected rate of nine per cent, according to a recent US economic study.

Significant changes in Saudi Arabia’s mining law that allows companies to work either with Saudi’s parastatal Saudi Arabian Mining Company (Ma’aden) or through joint ventures with local companies has created the right environment for foreign companies to boost their investment in the country, it stated.

Al Faleh also signed a joint roadmap for co-operation of the Saudi-Russian Joint Governmental Committee with the Russian Minister of Energy Alexander Novak at a key meeting held in the presence of officials from Aramco, Ministry of Energy, and a number of Russian energy companies.

A MoU was also signed between the Geological Survey of Saudi Arabia and the Russian Geological Corporation to enhance cooperation between the two countries in the scientific and geological field.

The pact includes geological prospecting and resource assessment, geophysical exploration of minerals and groundwater, marine geology, mineral and environmental studies and asymmetrical applications of geosciences, stated Dr Zuhair bin Abdulhafiz Nawab, the chairman of Saudi Geological Survey after signing the deal with Ruslan Goring, senior deputy to General Supervisor of Russian Geological Institute.

The duo also agreed on the formation of committees to follow up the implementation of its terms, as well as to consider possible future cooperation opportunities between the two countries.-TradeArabia News Service