Saudi Arabia said on Wedenesday that it will establish a firm to invest in mining assets internationally, as the kingdom seeks to diversify its economy from oil and secure access to strategic minerals.
According to details, Kingdom’s state miner and sovereign wealth fund to own company.
These strategic minerals include; lithium, nickel, cobalt, copper, graphite, silicon, platinum group metals and rare earth metals.
Global demand for minerals is likely to increase as the energy transition accelerates, with minerals a key component in the production of many clean energy technologies.
Saudi Arabia is seeking to attract U$170bn worth of investment in the mining industry by 2030 to help the country capitalise on its wealth of mineral resources, the total value of which is estimated to exceed U$1.3trn, according to figures from the government.
To prepare for this rise in demand, Bandar Alkhorayef, the minister of industry and mineral resources, announced a target of attracting U$32bn of investment in nine mining and minerals sector projects over the next few years.
Such investments would support the national goal of making the mining sector the third pillar of industry in the Kingdom.
Through the Saudi Green Initiative, the Kingdom aims to reach net-zero carbon emissions by 2060 and reduce emissions from 2016 levels by at least 278m tonnes per annum by 2030.
Speaking at the launch of the Saudi Green Initiative Forum in October 2021, Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud said, “The Saudi Green Initiative will provide huge investment opportunities for the private sector, quality job opportunities for the next generation of leaders in the Kingdom, and enhanced international relationships that will have a positive impact on the region and the world.”
The mining and mineral processing industries have a key supporting role to play in the energy transition.
Onshore wind farms can require nine times more mineral resources than a conventional plant burning gas, while EVs demand six times more than traditional vehicles.
As increasing concern about climate change drives the adoption of clean energy solutions, global reliance on minerals will increase.
Given that mining and other heavy industries can have negative environmental impacts, investors in these industries will need to ensure that the environmental benefits of their activities are not outweighed by the costs.
