Saudi Arabia is speeding up efforts to position itself as the major player in the minerals “super region” and reduce dependency its on oil as part of its Vision 2030 program.
Making the metals and mining sector the third pillar of its economy, Saudi Arabia is taking a holistic approach to invest in the sector inside and outside the country. From unveiling $182 million in exploration incentives and 33 new mining licenses this year, to setting up Manara Minerals in 2023 and making a major deal in taking a 10% stake in Vale Base Metals only a few months later, Saudi Arabia is making sure that the country is seen as determined in its efforts to become the leader of the “super region”, which has become the new buzzword, comprising Africa, the Middle East, Central Asia and South Asia.
“First we had to show that we have a mining sector, then we announced there are plans. This year is about credibility and that we are serious,” said Robert Wilt, Ma’aden CEO Jan. 11 at the Future Minerals Forum in Riyadh, Saudi Arabia. He added the new mining strategy, unveiled Jan. 10 at the event organized by the Ministry of Mining and Mineral Resources, does come with a certain amount of pressure. Ma’aden will consequently open up a new aluminum recycling plant, expand its aluminum production, open up two more gold mines and further its phosphorus business.
Saudi government taking comprehensive approach
“We are an executor. That is the beauty about the government and the region now,” said Khalid Mohammed Al-Salem, President Royal Commission for Jubail and Yanbu, an autonomous organization of the Saudi Arabian government.
He said that the government’s Vision 2030 has been the comprehensive framework to enable the intensive focus on metals and the new smart city project Neom which is aiming net zero emissions.
The ministerial roundtable Jan. 9 chaired by Saudi Arabia was deemed a success, delegates said. Although missing any written and signed commitments, UK Minister for Industry and Economic Security, Nusrat Ghani, and Egypt’s minister of petroleum and mineral resources, Tarek El-Molla, told S&P Global Commodity Insights that the talks were fruitful to make sure that countries tackle the energy transition and changes in the mining industry together, instead of separately.
“It’s a historical opportunity for Saudi Arabia to create a new sustainable mining industry from scratch,” said Brazil’s Vale Base Metals Chairman, Mark Cutifani, at a conference Jan. 11. “Opportunities like that happen a few times in history.”
At a time when global miners are shy to invest in different jurisdictions, countries like Saudi Arabia are a welcome player, Andrew Trahar, Partner and Co-Founder of minerals investment company Vision Blue Resources, said at the event.
The Future Minerals Forum is drawing to a close Jan. 11 and the government is making sure, with a final note in the late afternoon, that more capital investments are made.
“The mining sector is in urgent need of investments amounting to $5 trillion, to bridge the gap and enhance support for critical minerals, as well as developing infrastructure, services and electric energy production, explaining the importance of financing as an effective element in accelerating successes and achieving clean energy goals,” said Khaled Al-Mudaifer, Deputy Minister of Industry and Mineral Resources for Mining Affairs.
According to industry delegates however, it remains to be seen whether the country can continue creating the buzz it has created.