Saudi Arabia is striving to adopt a pivotal role in the mining and minerals sector, similar to its historical contribution to the stability of global energy supplies. Minister of Industry and Mineral Resources Bandar bin Ibrahim Al-Khorayef emphasized that achieving this goal requires building international partnerships and developing a comprehensive system that supports sector growth and enhances global mineral supply security.
Al-Khorayef made these remarks during a panel discussion titled: "Rare Earth Elements and Strategy: Sovereignty and International Cooperation in Rare Earth Elements and Critical Minerals," held at the St. Petersburg International Economic Forum in Russia, which included participation from several ministers, decision-makers, and leaders in the mining and minerals sector from around the world.
Event Details
Al-Khorayef explained that the Kingdom has launched the International Mining Conference to serve as a global platform that brings together governments, mining companies, financial institutions, and academic and technical entities. The conference aims to enhance international cooperation and develop the necessary partnerships to address the challenges facing the sector. The conference has established itself as one of the leading global specialized platforms, with its latest edition witnessing participation from 100 countries, alongside major mining companies and financial institutions.
He noted that the mining sector represents one of the essential pillars for achieving the objectives of Saudi Vision 2030 and diversifying the national economy. Over the past years, the Kingdom has intensified geological surveys and exploration activities, which have contributed to raising mineral wealth estimates to approximately 2.5 trillion USD, an increase of about 90% compared to the estimates announced in 2018, reflecting the promising opportunities that the sector holds.
Background & Context
The mining sector is considered a vital element in Saudi Vision 2030, as it seeks to enhance the non-oil economy and provide job opportunities. Al-Khorayef views mining as a third pillar in national industries, as it offers opportunities for developing manufacturing industries and value-added supply chains. Saudi non-oil exports reached record levels, amounting to approximately 620 billion SAR last year, with mining products, fertilizers, and aluminum forming a significant part of this.
The Kingdom aims to enhance international cooperation in the mining sector, as regions in Africa, the Middle East, and Central Asia hold about 33% of global mining reserves, yet contribute only about 6% to global supplies. This highlights the importance of enhancing cooperation and investment in developing infrastructure and value chains.
Impact & Consequences
Al-Khorayef affirmed that the future of the mining sector depends on international cooperation and the integration of value chains. He explained that developing the sector is not only related to the availability of mineral resources but also requires building a comprehensive system that includes infrastructure, advanced technologies, financing, and human capabilities, which contributes to enhancing the sustainability of global supply chains.
He also highlighted the importance of the partnership between Saudi Arabia and Russia in the mining and minerals sector, praising the level of cooperation between the two countries. Al-Khorayef confirmed the Kingdom's aspiration to expand the horizons of cooperation and joint investment in the field of rare and critical minerals, supporting the mutual interests of both countries.
Regional Significance
This Saudi approach in the mining sector reflects the importance of enhancing regional and international cooperation, especially in light of global economic challenges. Investment in this sector can contribute to achieving economic stability in the Arab region and enhance opportunities for sustainable development.
In conclusion, the mining and minerals sector represents a strategic opportunity for Saudi Arabia to enhance its economic position on the global stage, contributing to the achievement of the objectives of Vision 2030.