Saudi Arabia expects to raise its mineral wealth to over 1.1 billion euros
Ahead of the Future Minerals Forum - one of this year's most important new industry events - Riyadh announced the launch of an "ambitious" geophysical and mineral exploration study that it hopes will surpass previous estimates of the value of its mineral resources. Estimates reached 5 trillion Saudi rials (more than 1.1 billion euros) in 2020. Thus, over the next three years, the Kingdom aims to triple its budget for the industry and the search for new deposits, which is estimated to cost 220 Saudi rials per square metre (around 51 euros).
"Three or four years ago, mineral prices were in the mid-range, but now we are seeing prices increase, and we expect them to continue to increase because of the demand for these materials," said Abdullah bin Mufter Al-Shamrani, executive director of the Saudi Arabian Geological Survey (also known as SGS), in an interview with Arab News. The head of the SGS, which is responsible for assessing the geological potential of the country, also said that these measures will help achieve the mining sector's Vision 2030 targets, and will lead to the discovery of new mining sites, with the potential to reach more than 5,500 extraction sites.
Similarly, in order to attract national and international investors in the sector, the Saudi Geological Survey has developed a huge database that provides access to more than 10,000 mining reports and 80 years of national data.
This mining programme is part of Saudi Arabia's Vision 2030 Plan. A plan promoted in 2016 by Prince Mohammed bin Salman, through which Riyadh aims to reduce its economic dependence on the sale of hydrocarbons and diversify its sources of income through the development of non-oil sectors. Therefore, in order to achieve zero carbon emissions by 2060, the country must focus on reducing its activity in the oil sector. An industry that accounts for more than 40% of the country's GDP, making it the third largest exporter of hydrocarbons in the world.
In this regard, Khalid Al-Mudaifer, Deputy Minister of Mineral Affairs at the Kingdom's Ministry of Industry and Mineral Resources, told Kitco News that the country "has identified mining as a target for transformation, as it can aspire to be the third pillar of the country's industries".
"When we talk about minerals in Saudi Arabia, we are talking about 48 types of minerals. Some of them are very critical for global needs, such as cobalt, lithium or titanium. And all of them will allow for a more sustainable future if used efficiently. The future is talking about renewable energy and Saudi Arabia has these crucial minerals for the transition to cleaner energy sources," Mufter Al-Shamrani also emphasised.
In line with this strategy, Riyadh has announced the first Future Minerals Forum (FMF), which will take place from 11-13 January this year at the King Abdulaziz International Conference Centre, and will address issues relating to the future of the global mining sector.
EV Metals Group CEO Michael Naylor has expressed his support for the event, which he described as "an insightful and defining choice for the region, which is fully aligned with Vision 2030 as it transitions from a global leader in fossil fuel-based energy to a global leader in renewable energy-based energy".
The forum, which will bring together Saudi ministers, representatives from industry and related sectors, decision-makers from more than 100 countries and leading investors, will focus on addressing three main issues. These will relate to the expected demand for minerals over the next 10-30 years, how these needs will be met, and informing the public about sustainability and efficiency.