Riyadh, Saudi Arabia — Saudi Arabia has raised its mineral resources estimates on the exploration of nearly 30 percent of the Arabian Shield region, said the Kingdom’s Minister of Industry and Mineral Resources, Bandar Alkhorayef,,
There are more resources to be explored and with more exploration investments, Saudi Arabia can reach the maximum capacity of its mineral resources, Alkhorayef added on the sidelines of the third International Mining Conference in Riyadh.
Saudi Arabia revised upward estimates for its mineral resources from $1.3 trillion (SAR 4.9 trillion) in 2016 to $2.5 trillion (SAR 9.4 trillion).
The estimates were revised for phosphate, gold and rare earths. Moreover, the Kingdom’s reserves potential grew by 90 percent, the minister said.
Saudi Arabia made several industry achievements, and will announce, in cooperation with the Ministry of Investment, a mineral exploration incentive program with a budget of over $182 million, which will eliminate the related risks and further ensure providing the new commodities via green mining projects, according to Argaam.
Additionally, rounds five and six of the licensing program will be launched, allowing for the exploration of 33 sites over this year, while providing opportunities for more green initiatives.
Alkhorayef also indicated that exploration activities started in Jabal Sayid, spanning 4,000 square kilometers.
“We are going to witness during the next few days the signing of deals worth SAR 75 billion (almost $20 billion), which will drive R&D, technology upstream and other value chain opportunities,” Alkhorayef said.
In May, Saudi Arabia and the United Kingdom signed an agreement to jointly develop critical minerals supply chains.
Critical minerals are vital in producing various technologies, including electric vehicles, wind turbines, and solar panels. The shift towards a low-carbon economy necessitates an unprecedented supply of minerals.
Despite being one of the wealthiest countries in terms of mineral wealth, the Kingdom is the world’s fourth-largest importer of minerals, a fact that encourages it to focus on mining.
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In May 2023, the Saudi Arabian Mining Company (Ma’aden) has signed an agreement to buy 9.9 percent (10.2 million) shares of American company Ivanhoe Electric for $126.5 million and to form a 50-50 joint venture in the kingdom to contribute towards conducting one of the largest exploration programs in the world.
In November last year, Alkhorayef said Saudi Arabia has ambitious goals focused on harnessing mineral resources. He made these remarks during a session titled “A New Generation of Responsible Sustainable Mining Industries” at the Saudi-Arab-African Economic Conference.
He emphasized that mining in the Kingdom primarily aims to maximize the value derived from natural resources.
