During the inaugural day of the Future Minerals Forum in Riyadh, which took place from January 9th to 11th, Saudi Arabia’s Vice-Minister for Mining Affairs, His Excellency Khalid Al-Mudaifer, highlighted the necessity of enhancing global mineral value chains through three pivotal elements: consistent supply, strategic policy frameworks, and robust investment.
In light of the global shift towards a net-zero carbon future, the Vice-Minister addressed the challenges of producing sufficient quantities of essential minerals to meet the demands of emerging clean energy technologies. He compared the timeline of constructing our existing energy infrastructure over two centuries to the daunting task of creating a new one within just two decades.
Al-Mudaifer emphasized the significant financial requirements expected to reach nearly $3 trillion by 2030 for investment in mining operations, refinement, and smelting. Furthermore, he pointed out the need for a workforce expansion, estimating between 300,000 and 600,000 mining professionals, alongside requirements for ample electricity, efficient permitting, infrastructure, advanced equipment, and water resources.
For Saudi Arabia, the mining sector is not merely a source of revenue; rather, it is seen as a vehicle for job creation, economic diversification, and export growth. The Vice-Minister mentioned that all proceeds from the mining industry, including licensing fees, are reinvested into the sector to foster its expansion.
Discussing policy and investment, Al-Mudaifer referenced Saudi Arabia’s comprehensive overhaul of its mining investment law, which has resulted in a more investor-friendly climate, leading to a significant growth in the number of exploration licenses—four times more in the past three years compared to the six years prior.
He underlined the importance of promoting exploration to mitigate investment risks and announced the Kingdom’s $182 million exploration incentive program, aimed at supporting explorers and attracting new investments into the sector. This initiative is bolstered by the Kingdom’s geological survey, which has already mapped 30% of the Arabian Shield.
Al-Mudaifer shared the panel with prominent mining industry leaders including Jeremy Weir, Gareth Penny, Frank Giustra, Saad Al Khalb, Alec Machiels, and Tom Kendall, discussing the future of mining and its role in economic development and decarbonization efforts.