Saudi Arabia on track to increase private investment in mining sector to $45.6 billion

According to the Saudi Ministry of Industry and Mineral Resources, Saudi Arabia aims to increase private sector investment in the mining industry to 171 billion Saudi riyals (approximately $45.6 billion) by 2030.

The Ministry of Industry and Mines estimates that Saudi Arabia’s mineral resources exceed $1.3 trillion. These include phosphates and bauxite in the northeast, and gold, copper and other rare earth elements in the west.

According to media reports, Saudi Arabia is committed to increasing the mining industry's contribution to the country's GDP from the current $17 billion to $64 billion by 2030.

In recent years, the Saudi government has paid full attention to the benefits of the energy industry, made great efforts to utilize the country's abundant oil and natural gas resources, actively introduced foreign advanced technology and equipment, and began to penetrate the upstream and downstream industrial chains.

In addition to rich oil and gas resources, Saudi Arabia also has a variety of mineral resources, including phosphates, bauxite, gold, silver, lead, zinc, copper, iron ore and rare earths.

Saudi officials estimate that the total value of untapped mineral resources within its territory exceeds 5 trillion Saudi riyals.

In order to get rid of over-reliance on oil and achieve diversified economic development, Saudi Arabia began to vigorously look for breakthroughs. The reform of the mining industry became the entry point for its transformation, and strengthening the development of the mining industry became one of the core contents of its economic diversification.

“Vision 2030” also lists the mining industry as the third pillar to promote economic development in Saudi Arabia after oil, natural gas and petrochemicals.

Two months ago, media reports showed that Manara Minerals, a joint venture formed by Saudi Arabian Mining Company (Ma'aden) and the country's Public Investment Fund (PIF), would acquire a 10% stake in Vale's VBM unit. As one of the investors, Saudi Arabia has made a large-scale entry into the mining industry for the first time, attracting widespread market attention.

In order to stimulate rapid growth in the industry, Saudi Arabia has made great efforts to promote investment in the mining industry. Previously, the Saudi government approved a new bill on the mining industry, aiming to give more investment space to foreign capital and the private sector and release the development value of the country's mineral resources.

According to foreign media reports, Saudi Arabia also plans to invest more than 120 billion Saudi riyals by 2030 in several industries such as steel and aluminum, as well as chemicals needed for electric vehicle batteries.