Future Minerals Forum: Saudi Arabia boosts mining industry

Credit by Future Minerals Forum
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Saudi Arabia is making a determined effort to establish itself as a major player in the global critical minerals sector. At the annual Future Minerals Forum in Riyadh, the kingdom announced a series of agreements, investment plans, and discoveries aimed at positioning itself as a key supplier of these essential resources.

Deputy Minister for Mining Affairs Khalid Al-Mudaifer revealed on January 15 plans for a $100 billion investment strategy in mineral resources, with $20 billion worth of projects already in advanced study stages or under construction. While specific details were limited, Saudi officials emphasized plans to explore lithium, copper, gold, zinc, phosphate, and nickel—essential for the global energy transition.

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In early 2024, Saudi Arabia increased its estimate of untapped mineral resources from $1.3 trillion to $2.5 trillion, supported by new discoveries of critical elements and rare earth metals. To accelerate exploration, the government launched a $182 million incentives program during the forum.

A key highlight was the announcement of a joint venture between state oil giant Aramco and mining company Ma’aden. This partnership aims to explore and develop minerals critical for energy transition technologies. Speaking at the forum, Energy Minister Abdulaziz bin Salman noted promising lithium deposits exceeding 400 parts per million in areas where Aramco operates. “Aramco can be a diversified company, with no limits to its mandate,” he stated.

The government also spotlighted Manara, a new entity formed by Ma’aden and the Public Investment Fund (PIF). Manara’s goal is to secure global mining assets and strengthen supply chain resilience. “We don’t claim to have all the resources or expertise, so we created Manara to access what we need quickly,” said the minister. Lithium mining in Saudi Arabia could begin as early as 2027, facilitated by strategic partnerships.

Lithium, vital for batteries in electronic devices and electric vehicles, is a prized commodity for advancing energy technologies. As Saudi Arabia diversifies its economy away from oil, it aims to become a hub for processing critical minerals. Currently, about two-thirds of lithium processing is controlled by China, but Saudi Arabia seeks to reduce reliance on global supply chains through local production and partnerships.

In December, Saudi Arabia successfully extracted lithium from brine samples in Aramco’s oil fields. A collaboration between Ma’aden, Aramco, and local startup Lithium Infinity is set to pilot a commercial-scale direct extraction program soon.

By intensifying efforts in exploration, processing, and supply chain development, Saudi Arabia is positioning itself as a crucial player in the global market for critical minerals essential for the future of energy and technology.

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