In a pivotal move, the Kingdom of Saudi Arabia has established mining collaborations with several countries, including Egypt, Russia, Morocco, and the Democratic Republic of Congo. The agreements were announced at the Future Minerals Forum (FMF) held in Riyadh, Saudi Arabia.
Memorandums of understanding (MOUs) were signed between Saudi Arabia and Egypt’s Ministry of Petroleum and Mineral Resources, Morocco’s Ministry of Energy Transition and Sustainable Development, and the Congo’s Ministry of Mines, all of which are centred around cooperation regarding mineral resources.
In addition, a separate agreement was signed with the Russian Ministry of Natural Resources and Environment for cooperation in the field of geology and mineral resources.
Overall, this year, the Ministerial Roundtable attracted the participation of 79 governments, 13 international organizations, 15 non-governmental organizations, and seven business associations. The roundtable and FMF are intended to boost international collaboration to address the production of strategic minerals necessary for the energy transition.
The government website states that by recognizing the untapped mineral potential of the vast region spanning Africa, Western, and Central Asia, the FMF platform aims to lay the foundations for global and regional sustainable development throughout the mineral industries.
The roundtable also highlighted the need for stakeholders across government, industry, and the private sector to strengthen efforts to build capacity and collaborate on initiatives in the minerals sector that achieve economic and social development for local communities.
To diversify its economy and reduce its reliance on oil, Saudi Arabia has also launched a mineral exploration incentive programme worth US$182M. The country is known for its vast reserves of various minerals, including phosphate, gold, copper, and bauxite.
Bandar Alkhorayef, the Minister of Industry and Mineral Resources, stated at the Future Minerals Forum that the programme aims to secure investments in exploration, thereby facilitating the discovery of new commodities, the initiation of greenfield projects, and the emergence of junior miners.
He also announced that deals worth US$20B are expected to be signed in Riyadh during this week’s industry event. This includes the fifth and sixth rounds of a licencing programme that offers access to 33 exploration sites this year.
Furthermore, Saudi Arabia has revised its estimates for its untapped mineral resources upwards to US$2.5T, a significant increase from the 2016 forecast of US$1.3T. Alkhorayef attributed this revision to the exploration of 30% of the Arabian shields, suggesting that there is more potential for discovery.
As part of its strategy to diversify away from fossil fuels, the country has established Manara Minerals, a joint venture investment fund between Ma’aden and the Public Investment Fund (PIF), with the aim of acquiring assets overseas. Its first significant venture abroad was an agreement to acquire a 10% stake in Vale’s copper and nickel unit, valued at US$26B, in July of the previous year. The management of Manara is actively exploring various assets for potential acquisition or partnership with different countries.
