Minister Of Industry Discusses Localizing Smart Solutions For Mining Operations With Global Leaders

Minister of Industry and Mineral Resources Bandar Alkhorayef recently engaged with leaders from major mining service firms at the MINExpo International, which took place from September 24 to 26. The discussions centred on integrating advanced smart solutions into mining operations and exploring investment opportunities within Saudi Arabia's mining sector. Vice Minister for Mining Affairs Eng. Khalid AlMudaifer also attended these meetings.

Alkhorayef presented the Kingdom's mining sector potential to Michael Wright, CEO of Thiess, a prominent mining services company. He highlighted the comprehensive mining strategy and the Mining Investment Law, which ensures legislative stability in a rapidly growing investment environment. Thiess operates across Australia, Asia, and the Americas, extracting minerals like coal, copper, iron ore, nickel, gold, and diamonds.

In discussions with John Stanton, CEO of Weir Group, Alkhorayef focused on the valve and pump industry. By the end of 2022, this sector had a market value of $9.8 billion in Saudi Arabia. The demand for valves and pumps is increasing due to large projects in oil and gas sectors. Local production cannot fully meet this demand, presenting an opportunity for Weir Group to establish a manufacturing facility in the Kingdom.

Alkhorayef also met with Richard Harris and Petri Virrankoski from Sandvik Rock Processing Solutions and Sandvik Surface Drilling Solutions. They discussed Sandvik's offerings in mining equipment and cranes. The conversation included the Kingdom's comprehensive mining strategy and potential investment opportunities for Sandvik.

During his meeting with Dave Goddard from Hexagon's mining division, Alkhorayef emphasised Saudi Arabia's digital transformation initiatives. These include the Future Factories program aimed at automating 4,000 factories. This presents Hexagon with an opportunity to expand its presence by providing software solutions such as AI applications to meet growing demands.

Alkhorayef also engaged with Otto Breitschwerdt from Caterpillar to explore opportunities in heavy equipment and diesel generator sectors. The Saudi market for heavy equipment is valued at over $4 billion while diesel generators are worth $550 million; both markets are expected to grow significantly by 2030.

Localising Manufacturing Industries

The lack of licensed local manufacturers for heavy equipment creates an opportunity to localise these industries within Saudi Arabia. Caterpillar could potentially establish a production facility focusing on heavy machinery and diesel generator sets. Caterpillar has been a global leader in construction and mining equipment manufacturing for over a century.

Caterpillar has partnered with Zahid Tractor in Saudi Arabia for 70 years as its distributor and service provider. As part of their collaboration, Zahid Tractor supplied 69 generator sets delivering hybrid power solutions during the Red Sea Project's construction phase using both diesel and B100 biodiesel.

Innovative Solutions in Mineral Exploration

Alkhorayef also met Dan Lankford from Impossible Metals to discuss innovative smart solutions used in mineral exploration, particularly seabed and ocean mining operations. Impossible Metals is developing underwater robotic vehicles for collecting critical minerals from the seabed; they recently tested their autonomous underwater vehicle Eureka II AUV successfully in deep waters.

The meetings underscored Saudi Arabia's commitment to advancing its mining sector through strategic partnerships with global leaders while leveraging technological innovations to enhance operational efficiency across various industries.

With inputs from SPA