Beyond oil, Saudi Arabia is expanding exploration and exploitation of its vast domestic mineral reserves through substantial investments in the mining. The kingdom is driven by the growing demand for transition minerals such as lithium, cobalt and nickel, which are required for the transition from fossil fuels based economies to decarbonized economies.
The strategic prioritization of mining is closely linked with Vision 2030’s aim to maximize the benefit of the kingdom’s abundant natural resources beyond its conventional hydrocarbon reserves. Saudi Arabia is tactically re-oriented to exploit increasingly demanded resources that are pivotal in the worldwide transition to renewable energy sources by emphasizing essential transition minerals. This signifies not only a strategic response to the evolving dynamics of the global energy sector, but also a calculated attempt to preserve the kingdom’s preeminent position on the international energy arena.
As per official statements, the estimated value of unexploited mineral resources in Saudi Arabia has increased from $1.3 trillion to $2.5 trillion, driven by the discovery of rare earth elements and higher quantities of phosphate, gold, zinc and copper.
As part of its goal to pursue economic diversification and reduce reliance on oil production, Saudi Arabia aims to increase the mining industry’s GDP contribution from $17 billion to $75 billion by 2035. The Ministry of Industry and Mineral Resources, headed by Bandar Al-Khorayef, holds a pivotal position in directing the country’s mining endeavors. The Saudi Arabian Mining Company (Ma’aden), a prominent state-owned enterprise, plays a crucial role in the execution of the kingdom’s mining strategies, the development of partnerships to exploit mineral resources, and the operation of significant projects.
The Jabal Sayid copper project, a collaborative effort between Ma’aden and Barrick Gold, and the Al-Jalamid phosphate mine are among the significant domestic initiatives currently in progress. Saudi Arabia is also making substantial is investments in exploration and geological surveys utilizing cutting-edge technologies and international expertise to discover new mineral deposits. In alignment with the new Mining Investment Law, the ministry recently announced the auction of six mining licenses, covering deposits of lead, zinc, copper and iron. To further bolster the sector, the kingdom has introduced a $182 million exploration incentive program and granted 33 additional mining licenses.
On the global stage, Saudi Arabia is driving industry conversations through international initiatives such as the Future Minerals Forum and active participation in Africa’s Mining Indaba, underscoring its commitment to becoming a key player in the global mining industry.
