Saudi Arabia is heading towards becoming a “major player” in the metals market

A report published by the British consulting company Minehot revealed that the mining sector in Saudi Arabia is one of the fastest growing sectors in the world.
According to the report, the mining sector may remain like this for five years.
The report, which was highlighted by the global Oil Price website, added that after the adoption of the new law, the Kingdom enjoys great bright prospects in the sector.

Saudi Arabia’s growth in the metals sector

“In 2021, there was a 138% increase in the number of exploitation licenses issued,” the report said.
He added: “With the increasing need for the global transition to clean energy, many countries are facing a deficit in their reserves of mineral resources.”
He continued: “This is something that draws attention to the Kingdom and its tremendous growth in this sector, three years after this date.”
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Major Saudi steps within a year

Over the past year or so, Saudi Arabia has taken major steps beyond the traditional oil sector, investing heavily in exploring and developing its vast domestic mineral resources.
This effort takes two directions. On the one hand, the Kingdom wants to develop its own mineral resources in the long term.
On the other hand, it wants to establish foreign partnerships with countries such as the United States, some African countries, and India in order to become a global center for minerals.

Saudi Arabia..a global center for minerals

The overall goal is to move slowly away from economic dependence on a single supplier and take advantage of the growing global demand for transition metals, especially lithium, cobalt and nickel.
Such mineral resources are critical for the transition from fossil fuel-dependent economies to more advanced economies.
By taking advantage of its abundant mineral resources and strategic initiatives, the mining sector in Saudi Arabia is expected to become a cornerstone of economic diversification and sustainable development.
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Saudi Arabia is not only seeking to secure a foothold in these vital resource supply chains but also aims to position itself as a global hub for minerals critical to the global energy transition.

Pivotal role for mining

Reports indicate that mining now plays a pivotal role in Saudi Arabia’s strategy to reduce dependence on oil in accordance with Vision 2030, with a focus on benefiting from its large reserves of phosphate, gold, copper and bauxite.
It is estimated that Saudi Arabia possesses large quantities of minerals needed for the energy transition, such as aluminum, copper, and rare earth elements.

In order to facilitate this transition, Saudi Arabia has opened new licenses for mineral exploration and established foreign partnerships, which confirms its commitment to developing its huge mineral reserves.
Such investments include not only the potential extraction of mineral resources such as copper, zinc and gold, but also focus on strategic minerals essential for the production of batteries and renewable energy technologies.

Untapped resources

Saudi Arabia recently reviewed its estimates of untapped mineral resources, raising their value from $1.3 trillion expected 8 years ago to $2.5 trillion.
According to a report from Reuters, Minister of Industry and Mineral Resources Bandar Al-Khorayef stated that the Kingdom’s mineral reserves have grown by about 90%.
This increase of $1.2 trillion was attributed to the discovery of larger amounts of reserves, the addition of new minerals such as rare earths to the list, and the re-evaluation of commodity prices.
In late November, Saudi Arabia announced nine investment agreements in the metals and mining sector worth more than $9 billion (35 billion riyals).