Petroleum and Mineral Resources Minister Ali Al-Naimi has signed two more licenses to exploit limestone for cement production, bringing the total number of such licenses to 23, which were given to 17 Saudi companies.
Sultan bin Jamal Shawly, undersecretary at the ministry for mineral resources, said Al-Naimi signed the two licenses on Saturday that were won by Abdul Aziz Al-Amran & Partners.
Abdul Aziz Al-Amran, director general, signed the deal on behalf of his company.
He said the licensed area is located in Bahrat Hadhen in Taif.
The first license was allocated to exploit raw materials for white cement with a production capacity of not more than 500,000t while the second license was to exploit raw materials for Portland cement with a capacity of no more than 2Mt.
He said the establishment of the two cement factories in Taif would boost economic development of the city and create more jobs for its people.
Speaking about conditions, Shawly said the company that had won the two licenses should set up a joint stock company that would own the whole project including the two factories.
It will have a 50 percent stake in the new firm while the rest would be given to public through an initial public offering in accordance with the Capital Market Authority’s regulations.
The ministry wants to issue seven new licenses for limestone exploitation.