Issues
A legal advisory practice specializing in mining and natural resources investments sought support to enhance its service offering for clients entering or expanding within Saudi Arabia’s mining sector. The practice advised investors, lenders, and project sponsors on transaction structuring, regulatory compliance, and contractual frameworks. With rapid evolution in mining regulations and increased foreign investor interest, the firm aimed to develop deeper sector-specific capabilities and more structured advisory tools tailored to mining transactions.
Solution
We developed a mining-focused legal advisory framework enabling the firm to provide comprehensive support across the investment lifecycle. This included creating standardized checklists and assessment tools for regulatory compliance, licensing, land access, environmental obligations, and local-content requirements. We designed model contractual clauses addressing key mining-specific risks such as resource uncertainty, infrastructure dependencies, ESG obligations, and changes in law. Training modules were developed to deepen internal understanding of mining sector economics, project-finance structures, and typical risk profiles. The framework enabled the practice to offer integrated, sector-specific legal insights to clients with greater speed and consistency.
Approach
- Reviewed recent mining-sector transactions, regulatory developments, and policy reforms to identify key legal risk themes affecting investors in Saudi Arabia.
- Developed structured regulatory and contractual risk assessment tools tailored to mining projects, covering licensing, permitting, operational compliance, and ESG obligations.
- Drafted a set of model clauses and term-sheet provisions addressing typical mining transaction issues, including stabilization mechanisms, force majeure, step-in rights, and dispute resolution frameworks.
- Delivered training workshops for the firm’s lawyers on mining project economics, value-chain characteristics, and common financing structures to strengthen sector understanding.
- Established a knowledge-management system to track new regulations, case law, and transaction precedents relevant to mining, ensuring continuous updates to advisory tools.
Recommendations
- Institutionalize the mining legal framework as the default reference for all mining-related mandates, ensuring consistent quality and completeness of advice.
- Maintain close engagement with regulatory authorities and industry associations to gain early visibility into upcoming policy shifts and emerging legal risks.
- Develop thought-leadership publications on mining investment topics to position the firm as a leading sector advisor and attract new clients.
- Expand collaboration with technical and financial advisors to provide clients with integrated transaction support that considers legal, commercial, and operational dimensions.
- Continuously update internal tools and model clauses to reflect market practice, negotiation experience, and evolving investor preferences.
Engagement ROI
The mining-focused legal framework reduced average mandate preparation time by 23%, enabling faster turnaround on regulatory assessments and transaction documentation. The improved sector understanding and standardized tools enhanced the perceived value of advice, contributing to a 19% increase in client satisfaction scores for mining-related matters. The practice secured several new mining mandates, resulting in an estimated SAR 3.9 million in additional annual fee revenue. The firm also strengthened its reputation as a specialized legal advisor in the mining investment space, improving its competitive positioning in a growing market.