Saudi Arabia is estimated to possess undeveloped mineral resources valued at around $2.5 trillion, a significant increase from the 2016 estimate of $1.3 trillion. This valuation includes phosphates, gold, and rare earth elements. Bandar Ibrahim Alkhorayef, the Minister of Industry and Mineral Resources in Saudi Arabia disclosed this information in an interview with Reuters on the 10th. He explained that the higher estimate results from reevaluating commodity prices, discovering new rare earth elements, and the recognition of existing phosphate reserves.
Minister Alkhorayef also announced plans to issue over 30 mining exploration licenses to international investors in the current year. Furthermore, new regulations will enable each license to cover an exploration area exceeding 2,000 kilometers. Since 2022, Saudi Arabia has granted mining development rights to foreign investors.
Saudi Arabia has been actively expanding its presence in the global mineral market. In March of the previous year, the Public Investment Fund (PIF) established Manara Minerals, a joint venture with Ma’aden, to invest in mining assets worldwide. Later, in July, they acquired a 10% stake in the Brazilian mining company Vale SA for $2.6 billion.
Saudi Arabia, renowned for its abundant natural resources, boasts a wide array of minerals, including phosphates, bauxite, copper, zinc, gold, silver, lead, iron ore, rare earth elements, oil, and natural gas.
The nation is implementing Vision 2030, a comprehensive development plan to diversify its economy from heavy reliance on oil. This strategic plan seeks to reduce Saudi Arabia’s dependence on oil by fostering growth in non-oil sectors, including healthcare, education, infrastructure, recreation, and tourism. The ultimate goal is to raise the share of non-oil sector exports from 16% in 2016 to 50% by 2030.
By. Seonghwan Hong
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