Saudi Arabia’s Mining Ambitions Face Investor Doubts
Saudi Arabia is striving to establish a significant metals and mining hub, yet foreign investors remain more interested in Saudi funding rather than committing their own capital.
During the recent Future Minerals Forum in Riyadh, several participants expressed interest in attracting Saudi investments instead of investing locally. They are awaiting tangible developments from the kingdom’s ambitious plans.
Saudi Arabia showcased $100 billion in local investment opportunities, claiming $2.5 trillion in untapped mineral resources. The goal is to make mining a key economic pillar alongside oil and petrochemicals, as part of Crown Prince Mohammed bin Salman’s diversification strategy.
The country aims to boost local mineral exploration and processing to support large-scale projects and reduce costly imports. Saudi Arabia’s mining firm Maaden is tasked with growing the industry, while Manara Minerals seeks overseas assets. However, Manara has completed only one major deal with Vale from Brazil.
Despite some progress, Saudi Mining Minister Bandar Alkhorayef acknowledged that developments are not advancing swiftly enough. Canadian and international mining companies are showing interest, yet substantial investments remain pending.
Al Masane Al Kobra Mining Co., known as Amak, is exploring copper and gold opportunities, planning to increase drilling expenditure. The firm anticipates downstream processing investments within five years, supported by government incentives.
Foreign companies like India’s Vedanta Ltd and Turkish steelmaker Tosyali Holding AS have announced significant investment plans in Saudi Arabia, aiming to establish processing facilities.
Numerous agreements have been signed, aiming for local mineral processing, though actual project execution is still in early stages. Saudi Arabia is negotiating with Pakistan to acquire a stake in a Barrick mine, with potential investments hinging on processing arrangements.
Emphasizing the need for speed, Maaden’s CEO proposed reducing the timeline from exploration to mining to nine years. The urgency is clear: Saudi Arabia must accelerate its efforts to realize its mining aspirations.