Saudi Arabia's mining sector: A new pivotal role in the global economy
His Excellency the Minister of Industry and Mineral Resources, Mr. Bandar bin Ibrahim Al-Khorayef, affirmed that the Kingdom of Saudi Arabia is striving to develop its mining sector to play a pivotal global role commensurate with its historical and pioneering role in bolstering the stability of global energy markets. This statement was made during His Excellency's participation in a strategic dialogue session entitled “Rare Earth Elements and Strategy: Sovereignty and International Cooperation in the Field of Rare Earth Elements and Critical Minerals,” held as part of the St. Petersburg International Economic Forum in the Russian Federation. The session brought together a distinguished group of ministers, decision-makers, and leaders from the mining and minerals sector across the globe.
Vision 2030 and the reshaping of the mining sector in Saudi Arabia
Historically, the Saudi economy has relied primarily on oil and gas as its main sources of national income and economic development. With the launch of Vision 2030, the Kingdom has set out an ambitious strategy to diversify its sources of income and develop promising new sectors. In this context, mining has been identified as the third pillar of Saudi Arabia's national industry, alongside oil and petrochemicals.
The intensive geological survey efforts led by the Kingdom in recent years have yielded remarkable results, with estimates of the country's untapped mineral wealth increasing by nearly 90% to approximately US$2.5 trillion, compared to 2018 estimates of US$1.3 trillion. This substantial growth reflects the vast and promising investment opportunities within this vital sector.
Strengthening international cooperation and global supply security
Al-Khorayef explained that the future of critical minerals and rare earth elements depends primarily on building strong international partnerships and integrating value chains. It is with this in mind that the Kingdom launched the International Mining Conference as a leading global platform bringing together governments, major corporations, financial institutions, and academic and technical bodies to address shared challenges and secure supply chains.
This conference has solidified its international standing, with its latest edition witnessing broad participation from over 100 countries, highlighting the Kingdom's strategic importance as a link between global production and consumption regions. The Minister noted that Africa, the Middle East, and Central Asia collectively possess approximately 33% of global mineral reserves, yet contribute only 6% of current supplies, necessitating increased international investment to develop infrastructure in these promising regions.
Local and regional economic impact of the mining sector
The importance of investing in minerals extends beyond direct economic benefits, encompassing support for global food security through industries related to phosphate fertilizers and the development of advanced downstream industries such as aluminum and steel. The Kingdom's non-oil exports reached record levels last year, amounting to approximately 620 billion Saudi riyals, with mining products, fertilizers, and aluminum constituting a major part of this export surge.
On the bilateral level, the Minister noted the importance of the existing strategic partnership between the Kingdom and the Russian Federation in the mining and minerals sector, expressing the Kingdom’s aspiration to expand the horizons of cooperation and joint investment in the fields of rare and critical minerals, in a way that serves common interests and contributes to building more resilient and sustainable global supply chains in the face of current economic and environmental transformations.
