Meed | Riyadh digs deep for metals

Riyadh digs deep for metals

27 February 2024

Commentary
Colin Foreman
Editor

Read the March 2024 edition of MEED Business Review

Saudi Arabia’s flagship gigaprojects have meant the focus on the kingdom’s development over the past five years has been above ground rather than below. But this does not mean that Riyadh has overlooked the economic potential
of its subterranean assets.

Historically overshadowed by the oil industry, Saudi Arabia’s metals and mining sector is undergoing a transformative shift as part of the kingdom’s Vision 2030 economic diversification efforts.

The goal is to work with investors to harness the full potential of Saudi Arabia’s mineral wealth, which includes phosphates, gold, copper, zinc and rare earths.

The value of this mining potential received a major boost in January when Bandar Alkhorayef, the kingdom’s industry and mineral resources minister, said that Saudi Arabia’s natural resources potential is now valued at $2.5tn – a 90% increase from 2016 when Vision 2030 was launched.

The enactment of a new mining investment law in 2021 has been followed by the award of over 2,000 mining permits. These permits, along with the investment and technical expertise they bring, are crucial to driving Saudi’s mining sector forward.

Foreign governments are playing their part too. The Industry & Mineral Resources Ministry has signed memorandums of understandings with its counterparts from Egypt, Morocco, Congo and Russia to promote the transfer of knowledge from more established mining markets.

The Public Investment Fund -owned Saudi Arabian Mining Company (Maaden) also has a key role in shaping the kingdom’s mining strategy. Maaden’s plans include developing the geological formation known as the Arabian Shield, and its already significant gold discoveries have given the sector confidence to continue ramping up production and exploring for new deposits.

As progress on developing the mining sector gathers pace on multiple fronts, the kingdom will move closer to realising
the full potential of its underground assets.

MEED’s March 2024 Agenda includes: