Economist: Saudi Arabia to Become Global Metal Industry Hub
“The Economist” has praised Crown Prince Mohammed bin Salman’s efforts in developing Saudi Arabia’s mining sector in line with Vision 2030.
Economist published a report titled “Saudi Arabia Aims to Lead in Mining.” The report outlined the programs and initiatives to advance the mining industry.
Hence, this will lead the mining sector to be the third pillar of the Saudi economy alongside oil and petrochemicals.
This strategy attempts to position Saudi Arabia as a worldwide hub for the mining sector, particularly in strategic minerals vital for the energy transition.
Saudi Arabia Organizes International Mining Conference
The magazine noted that KSA organized the 3rd edition of the International Mining Conference last January.
Notably, the event attracted over 14,000 participants from investment leaders, major mining companies’ CEOs, and technical experts from 133 countries.
Additionally, the conference witnessed agreements worth 75 billion riyals (20 billion dollars) between countries and companies.
Saudi Arabia’s advancements in the extraction and processing of phosphate
The report tackled the city of Waad Al Shamal where phosphate is extracted and processed to be transported by railway to Ras Al Khair Port.
Notably, after extracting and processing, phosphate is exported to Brazil, Africa, India, and Bangladesh, contributing to 10% of the world’s food supply.
The report highlighted Saudi Arabia’s strides in phosphate extraction and processing to enhance its global standing as a mineral producer and exporter.
It is worth mentioning that the estimated undiscovered mineral wealth of KSA is huge. It includes quantities of gold, copper, and zinc valued at over 9.4 trillion riyals ($2.5 trillion).
Moreover, the report mentioned that “Manarat Al-Maaden Company”, which aims to invest up to 15 billion dollars at the international level, is the embodiment of KSA’s foreign investment policy.
Notably, Manara purchased 10% of the base metals business of the giant Brazilian company Vale for $3 billion.
MIM Attracts Investors to Mining Sector
Moreover, the report mentioned that the Ministry of Industry and Mineral Resources (MIM), issued legislation and regulations to attract investors to the sector.
Furthermore, MIM reduced license issuance time to two months, resulting in a significant increase in license requests and quadrupling exploration licenses annually.
Saudi Arabia Invests in Mining Sector
Notably, KSA invests in mining sectors in many ways such as:
- launching incentives worth over 180 million dollars for mineral exploration during the recent International Mining Conference.
- Investing in geological survey programs and developing geological databases.
- Providing training programs for Saudi geologists and engineers in collaboration with leading mining research centers worldwide.
- launching a new mining specialization in King Fahd University of Petroleum and Minerals.
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