During the Future Minerals Forum held in Riyadh, Saudi Arabia’s Vice-Minister for Mining Affairs, His Excellency Khalid Al-Mudaifer, highlighted the critical need for three pillars to fund global mineral value chains: ample supply, supportive policies, and robust investment.
Addressing the challenges associated with the global push towards decarbonization and net-zero emissions, he emphasized the urgency of ramping up production of essential minerals to meet the demands of emerging clean energy technologies.
His Excellency pointed out the daunting task of constructing a new energy system in a mere two decades, as opposed to the two centuries spent developing the current one. He underscored the significant investments required, estimating that around $3 trillion will need to be funneled into mining, refining, and smelting by 2030. Additionally, the industry will need to attract between 300,000 and 600,000 mining professionals. The expansion of the sector will also necessitate considerable amounts of energy, efficient permitting, infrastructure development, specialized equipment, and water resources.
For Saudi Arabia, the mining sector represents more than just a revenue source. It is seen as a vital instrument for job creation, economic diversification, and export growth. The Kingdom reinvests all revenues from the industry, including licensing fees, to foster further growth.
On policy and investment matters, the Vice-Minister commended Saudi Arabia’s revamped mining investment law, which has cultivated a more welcoming environment for investors. This reform has led to a fourfold increase in the issuance of exploration licenses in the past three years compared to the six years prior.
He stressed the importance of encouraging exploration as a means to mitigate investment risks. With 30% of the Arabian Shield already surveyed by the nation’s premier geological service and the introduction of a new $182 million exploration incentive program, Saudi Arabia is keen to bolster exploration and draw new investments into this sector.
Joining the Vice-Minister on the panel were distinguished mining industry leaders, such as Jeremy Weir of Trafigura, Gareth Penny from NinetyOne, Frank Giustra of the Fiore Group of Companies, Saad Al Khalb of Saudi Exim Bank, Alec Machiels of Traxys, and Tom Kendall of ICBC Standard Bank.