Riyadh, December 6, 2024 – Eng. Khalid Al-Mudaifer, Vice Minister of Industry and Mineral Resources for Mining Affairs, highlighted the significant strides made by Saudi Arabia's mining sector during his participation in the opening of the Resourcing Tomorrow event in London. This event, dedicated to accelerating the global energy transition, served as a key platform for discussing the future of minerals, energy supply, and sustainability. Al-Mudaifer’s remarks underscored the Kingdom's commitment to transforming its mining industry and solidifying its role as a key player in the global supply chain for critical minerals.
Saudi Arabia has long been a cornerstone in global energy markets, and Al-Mudaifer emphasized that the Kingdom’s recognition of the need for reliable and sustainable energy supplies extends to its approach to mineral resources. As the demand for minerals escalates, particularly due to the rapid industrialization driven by Vision 2030 and the National Strategy for Industry, Saudi Arabia is increasingly focused on securing a robust and sustainable local supply chain. The Vice Minister noted that this growing demand is fueled by the Kingdom’s strategic goal to become a leading industrial power, capable of contributing to and securing global industrial supply chains.
A central element of Saudi Arabia’s mining sector development is the comprehensive approach taken by the Ministry of Industry and Mineral Resources. Al-Mudaifer highlighted several key initiatives aimed at enhancing the mining sector’s capabilities. One of the standout achievements is the launch of the Kingdom’s comprehensive strategy for mining and metal industries, which includes the new Mining Investment Law. This landmark legislation is designed to attract foreign and local investments, creating a favorable environment for the mining industry to flourish. Additionally, the general geological survey program has been a significant undertaking, covering up to 600,000 square kilometers, with 62% of the area already explored. These efforts aim to provide essential data that will guide future mining operations and help unlock the Kingdom’s vast mineral potential.
To further accelerate the growth of the sector, Saudi Arabia has offered substantial financial incentives for mining exploration, drawing in investments through its innovative mining bids program. In 2024, the Kingdom expanded the area available for exploration, offering a total area 10 times larger than in 2023, with plans to open an additional 50,000 square kilometers for exploration in 2025. This proactive approach has already resulted in substantial investments in sectors such as steel, copper, and battery metals, with $32 billion allocated to projects currently under implementation.
In line with these efforts, the Future Minerals Forum, launched in Riyadh in 2022, has become a pivotal international platform for collaboration. Al-Mudaifer celebrated the success of this forum, emphasizing that it has quickly established itself as the central global gathering for mineral-producing and consuming countries to discuss shared challenges and opportunities in the sector. The forum has not only fostered collaboration but also served as a critical space for shaping the future of the mining industry, particularly in regard to supply chain development and exploration strategies.
The Vice Minister also discussed the growing demand for minerals globally, noting that the mining sector will require up to $6 trillion in investments by 2035 to meet the needs of modern energy transitions and technological industries. This level of investment is equivalent to four times the market value of the largest 20 mining companies globally. To meet this challenge, Al-Mudaifer stressed the importance of increased collaboration between producing and consuming countries to drive sustainability in the sector and ensure a steady supply of critical minerals, such as copper and lithium, which are essential for renewable energy technologies.
Al-Mudaifer acknowledged the various challenges facing the mining sector, including a significant investment gap, the lack of new exploration, and a shortage of qualified human resources. Moreover, market disruptions have created uncertainty regarding mineral demand, adding complexity to long-term planning. However, he pointed to the promise of technological innovations, including artificial intelligence (AI) and quantum computing, which are expected to revolutionize exploration and production processes. These innovations will help enhance efficiency, reduce costs, and unlock new possibilities for the mining industry.
Another crucial factor in Saudi Arabia’s mining strategy is the Kingdom’s alignment with global standards of environmental and social sustainability. Al-Mudaifer emphasized the Kingdom’s commitment to ensuring that its mining systems operate with the highest standards of environmental stewardship. Saudi Arabia has also worked to streamline its processes related to the issuance of exploration licenses, further improving its standing in the global mining community. In fact, according to the Global Risks Report 2023, Saudi Arabia ranks second globally in the permits index, a testament to the ease of doing business and the efficiency of the Kingdom’s regulatory framework.
As part of his participation in the Resourcing Tomorrow event, Al-Mudaifer also engaged in discussions during the government roundtable, where he outlined Saudi Arabia’s ambitions to become a global hub for mineral production. The Kingdom is keen to position itself at the center of global mining activities through sustainable manufacturing, processing operations, and fostering strong partnerships with mineral-producing countries and end consumers. These efforts are aligned with the broader objectives of Vision 2030, which aims to diversify the economy, reduce reliance on oil exports, and make Saudi Arabia a key player in the global industrial and technological landscape.
In conclusion, Al-Mudaifer’s participation in Resourcing Tomorrow highlighted Saudi Arabia’s evolving role in the global mining sector. With a comprehensive strategy to enhance exploration, investment, and sustainability in mining, Saudi Arabia is poised to contribute significantly to securing the minerals needed for the future of energy, technology, and industrial growth. Through innovation, collaboration, and a forward-thinking approach, the Kingdom is laying the foundation for a sustainable and thriving mining industry that will support its broader vision for economic diversification and industrial leadership.
