In a strategic move to diversify its economy and enhance its mining sector, Saudi Arabia has established several memorandums of understanding (MOUs) with key international partners. At the esteemed Future Minerals Forum held in Riyadh, the kingdom signed agreements with Egypt, Russia, Morocco, and the Democratic Republic of Congo to foster cooperation in the realm of mineral resources and geology.
The partnerships with Egypt’s Ministry of Petroleum and Mineral Resources, Morocco’s Ministry of Energy Transition and Sustainable Development, and the Congo’s Ministry of Mines are centered on developing the respective countries’ mineral wealth. A distinct MOU with Russia focuses on geological collaboration.
Concurrently, Saudi Arabia is propelling its mining industry forward with a significant $182 million mineral exploration incentive program. The initiative is aimed at de-risking investments in exploration activities, thus cultivating new mining projects and encouraging junior miners, as expressed by Bandar Alkhorayef, the Saudi Minister of Industry and Mineral Resources. The nation’s abundant reserves include phosphate, gold, copper, and bauxite.
Anticipating business deals of approximately 75 billion riyals ($20 billion) during the forum, Alkhorayef highlighted the upcoming fifth and sixth rounds of a licensing program which will grant access to 33 exploration sites throughout the current year.
Reflecting on the reassessed value of its untapped mineral resources, now estimated at a staggering $2.5 trillion compared to a 2016 forecast of $1.3 trillion, Alkhorayef suggested that a mere 30% of the Arabian shield has been explored, hinting at the potential for further discoveries.
As the kingdom pivots away from its reliance on oil, it has also launched Manara Minerals, a joint venture between mining company Ma’aden and the Public Investment Fund (PIF), to acquire mining assets globally. Marking its first significant international investment, Manara Minerals obtained a 10% stake in the base metals division of Brazilian mining giant Vale.
Manara Minerals’ management is actively seeking additional assets for acquisition or to establish partnerships with other nations, underscoring Saudi Arabia’s commitment to becoming a major player in the global mining industry.