Saudi Arabia’s Ambitious Mining Vision
Saudi Arabia is ambitiously working to establish itself as a major hub for metals and mining. However, foreign investors are more interested in securing Saudi funds than committing their own capital.
During the recent Future Minerals Forum in Riyadh, many participants expressed interest in Saudi investments but hesitated to invest themselves. They are waiting to see how the kingdom’s plans for metal plants and large-scale deals will unfold.
Saudi Arabia has highlighted $100 billion in local investment opportunities and estimates $2.5 trillion in untapped mineral resources. The goal is to make mining a key economic pillar, alongside oil and petrochemicals, as part of its diversification strategy.
The nation has tasked Maaden with expanding the domestic mining sector and launched Manara Minerals to acquire international assets. Yet, progress has been slow, with only one major acquisition completed with Brazil’s Vale.
Canadian miner Barrick Gold has a presence in Saudi Arabia with a copper mine near the Red Sea. Other companies, like McEwen Mining, are interested but have not yet committed.
Amak, a local miner, is in preliminary talks with an international firm and plans to significantly increase its exploration efforts. The company sees potential in building copper processing facilities within the next five years, bolstered by government support.
Foreign companies like India’s Vedanta and Turkey’s Tosyali Holding are advancing plans for substantial investments in Saudi Arabia’s processing infrastructure.
Despite these developments, Saudi officials acknowledge the need for faster progress. Maaden’s CEO has proposed reducing the time from exploration to production from 20 to nine years, highlighting the urgency felt within the kingdom.
Saudi Arabia continues to explore international partnerships, including potential deals with Pakistan, Chile, Canada, and Zambia. However, the prevailing message is clear: the kingdom must accelerate its efforts to realize its mining ambitions.