Saudi Mining Sector Developments Emphasised By Vice Minister Eng. Khalid Al-Mudaifer At Resourcing Tomorrow Event

Eng. Khalid Al-Mudaifer, Vice Minister of Industry and Mineral Resources for Mining Affairs, highlighted the advancements in Saudi Arabia's mining sector at the Resourcing Tomorrow event in London. He emphasised the Kingdom's historical role in global energy supply and its commitment to exploring and managing mineral resources to ensure sustainability. The growing local demand for minerals is driven by Vision 2030 projects and the National Strategy for Industry.

Al-Mudaifer noted that Saudi Arabia aims to become a leading industrial power, contributing to global supply chains. The national minerals program and Manara Minerals company play crucial roles in securing local mineral supplies. The ministry's strategy focuses on providing essential minerals for industrial transformation by enhancing the local mining sector.

The vice minister highlighted recent regulatory achievements, including the comprehensive strategy for mining and metal industries and the Mining Investment Law. A general geological survey program covers up to 600,000 square kilometers, with 62% already surveyed. Financial incentives support mining exploration, attracting investments through expanded mining bids.

This year saw a significant expansion, offering an area ten times larger than in 2023 for exploration, with plans to offer 50,000 square kilometers in 2025. Al-Mudaifer reviewed initiatives to attract investments, such as allocating $32 billion to projects in sectors like steel, battery metals, and copper.

The Future Minerals Forum, launched in Riyadh in 2022, has established itself as an international platform for collaboration between mineral-producing and consuming countries. Al-Mudaifer stated that within three years, it has become a key venue for shaping the future of the mining sector through exploration and supply-chain development.

He stressed that massive investments of up to $6 trillion are needed by 2035 to meet global mineral demand. This figure is four times the market value of the world's largest 20 mining companies. Collaboration between producing and consuming countries is vital for investment growth and sustainability.

Challenges and Technological Innovations

Al-Mudaifer highlighted challenges such as insufficient new exploration efforts, a gap in attracting skilled human resources, and market disruptions affecting mineral demand clarity. He discussed opportunities from technological innovations like AI and quantum computing that could enhance exploration efficiency and reduce costs.

The focus of major industrial nations on minerals presents growth opportunities. Fourteen G20 countries have launched critical minerals strategies to secure future needs. Meanwhile, Saudi Arabia aims to be a global hub for mineral production through sustainable practices.

Sustainable Practices and Global Standards

The vice minister participated in a government roundtable at Resourcing Tomorrow, stating Saudi Arabia's goal of becoming a global hub for mineral production through sustainable manufacturing processes. The Kingdom seeks effective partnerships with mineral-producing countries while empowering related sectors.

Saudi Arabia has improved its mining systems' efficiency to align with international environmental standards. It facilitated licensing procedures and access to exploration sites, ranking second globally in permits according to the Global Risks Report 2023.

Achieving energy transition targets requires sustainable supplies of strategic minerals like copper and lithium essential for renewable technologies. Al-Mudaifer underscored this need alongside addressing challenges such as investment shortages and market disruptions impacting demand clarity.

With inputs from SPA