By: Kitco news

Saudi Arabia is embarking on an ambitious plan to transform its economy by developing its mineral resources and establishing mining as the third pillar of its industrial sector, according to H.E. Khalid Al-Mudaifer, Vice-Minister for Mining Affairs of the Kingdom of Saudi Arabia.

Speaking at the Future Minerals Forum in Riyadh, Al-Mudaifer outlined the Kingdom's strategy to leverage its resources and expertise to become a major player in the global mining industry.

At the heart of this transformation is Vision 2030, Saudi Arabia's strategic plan for economic diversification. "Mining and minerals have been pointed out in Vision 2030 in 2016 as the new sector to focus on," Al-Mudaifer told Kitco Mining. The goal is to reduce the country's reliance on oil and gas and create new opportunities for economic growth.

Strategic partnerships

Partnerships are central to Saudi Arabia's approach. "We are building our mining minerals in partnership," Al-Mudaifer said.  This collaborative approach aims to bring in expertise and investment from around the world.

Saudi Arabia is making significant investments in exploration to discover new mineral deposits. Al-Mudaifer noted the increase in exploration companies operating in the country: "The number of companies on exploration has increased in Saudi Arabia from 23 in 2023 to 132, 4 times in just one year because the potential is there and the enablement is here."

To support exploration efforts, the Kingdom has launched a regional geological survey and established exploration incentives. "We have completed most of it," Al-Mudaifer said about the survey. "65% of the data that we acquired is in our national geoscience database." The country also provides financial support to exploration companies, covering up to 25% of their initial costs.

Saudi Arabia is also working to create a business-friendly environment for mining companies. "It is now less than three months to get a license," Al-Mudaifer stated, highlighting the accelerated issuance of licenses. Additionally, the Kingdom offers attractive incentives for downstream industries, such as discounted mineral royalties.

"Mineral reality can be discounted up to 90 percent if you invest in the downstream value chain or you sell to a local value chain," Al-Mudaifer explained.

Saudi Aramco, the world's largest oil company, is playing a key role in the development of the mining sector. "Aramco, with all their expertise in oil and business...will explore the Arabian platform," Al-Mudaifer said. Aramco is also investing in technologies to extract lithium from oil fields. "They are also extracting lithium out of their Mineral fields, and they are investing in technologies in that regard," according to Al-Mudaifer.

Saudi Arabia sees its mining ambitions as part of a global effort to meet the growing demand for minerals. "The world needs more minerals, and for it to happen, we need more countries to transform," Al-Mudaifer stated. "We are not competing with everybody. We want everybody to succeed. That's why we are helping not only Saudi Arabia but also countries around the world to transform."