Saudi Arabia has increased its projections for untapped mineral resources, encompassing phosphate, gold, and rare earths, to $2.5 trillion, a significant upward revision from the 2016 forecast of $1.3 trillion, as indicated by the country’s mining minister. This reflects Riyadh’s strategic emphasis on diversifying its economy away from oil dependence, with a focus on harnessing extensive reserves of phosphate, gold, copper, and bauxite.
The Saudi Arabian Mining Company, commonly known as Ma’aden and founded in 1997, currently extracts some of these minerals. Mining Minister Bandar Al-Khorayef revealed in an interview with Reuters that they believe the potential of their reserves has expanded by 90%.
This increase of $1.2 trillion is attributed to a combination of augmented quantities of existing resources, such as phosphate, the introduction of new resources like rare earths, and a reevaluation of commodity pricing. A formal announcement is scheduled for Wednesday during the Future Minerals Forum (FMF) mining gathering.
Al-Khorayef noted that 10% of the upward revision in estimates is due to the inclusion of rare earth minerals, essential for electric vehicles and high-tech products. Saudi Arabia intends to grant over 30 mining exploration licenses to international investors this year.
Additionally, a new regulation will be announced, enabling the mining ministry to allocate larger exploration areas, exceeding 2,000 kilometers for each license, addressing feedback from global players expressing a desire for more substantial awarded areas.
Riyadh initiated the issuance of licenses to international miners in 2022. Al-Khareef has previously stated that the kingdom aims to progress from exploration and extraction to processing and manufacturing. Saudi Arabia envisions itself as a suitable location for the processing of various minerals, including those mined in Africa. As part of its diversification strategy, the country established the investment fund Manara Minerals, a joint venture between Maaden and the Public Investment Fund (PIF), to acquire overseas assets. Its initial significant venture abroad involved acquiring a 10% stake in Vale’s $26 billion copper and nickel unit last July.
