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Business News: Saudi Arabia bets on $2.5 trillion mineral wealth to reduce oil dependence

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Alam Ki Khabar | Bihar News | Patna News | Samastipur News | Saudi Arabia is expanding mining and mineral exploration under Vision 2030, targeting its estimated $2.5 trillion mineral wealth to diversify beyond oil.

Desk, Riyadh, August 21. Saudi Arabia is looking beneath its vast desert landscape for the next major engine of economic growth. After decades of building its wealth around oil, the Kingdom is now accelerating efforts to develop mining, mineral processing and manufacturing as part of its wider strategy to reduce dependence on hydrocarbons.

The shift is being driven by the scale of Saudi Arabia's mineral potential. Government estimates put the Kingdom's untapped mineral wealth at around $2.5 trillion, with resources including gold, copper, zinc, phosphate, bauxite and rare-earth elements. Saudi authorities increasingly view these resources not simply as commodities to be extracted, but as the foundation for new industrial supply chains and exports.

The latest push gained momentum this week after Saudi Aramco and mining giant Ma'aden signed an agreement to establish a joint venture focused on mineral exploration and hard-rock mining. The partnership will initially concentrate on copper and other minerals considered important for the global energy transition.

Aramco-Maaden partnership opens a new frontier

The new venture will explore Zone-4, also known as the Transition Zone, within the Arabian Platform. The area covers approximately 182,000 square kilometres, equivalent to nearly 10 percent of Saudi Arabia's total land area.

The zone stretches along a roughly 100-kilometre-wide corridor parallel to the Arabian Shield. Under the proposed structure, Ma'aden is expected to hold a 51 percent stake while Aramco will own 49 percent.

The partnership brings together two different areas of expertise. Aramco contributes decades of geological and geophysical data, along with artificial intelligence and high-performance computing capabilities, while Ma'aden brings experience in mineral exploration, mining and development.

The companies say these technologies can help identify areas with a higher probability of containing copper and other valuable minerals, potentially making exploration faster and more efficient.

Arabian Shield could become the heart of the strategy

A major part of Saudi Arabia's mineral ambitions is centred on the Arabian Shield, an ancient geological formation stretching across large parts of western Saudi Arabia.

The formation is believed to have developed hundreds of millions of years ago through volcanic activity, tectonic movements and continental collisions. Geological studies indicate that the region contains a wide range of mineral deposits and remains significantly underexplored. Saudi officials have described the Arabian Shield as one of the country's most important opportunities for expanding its mining industry.

The Kingdom has already identified deposits or indications of several commercially important minerals, including gold, copper, silver, zinc, lead and rare-earth elements.

The government says geological surveys and exploration programs have significantly improved estimates of the country's mineral potential. The estimated value increased from around $1.3 trillion in 2016 to approximately $2.5 trillion after new discoveries and reassessments of existing resources.

Copper has become especially important

Among all the minerals being targeted, copper has gained particular importance because of its role in the global energy transition.

Copper is widely used in electric vehicles, power grids, energy-storage systems and renewable-energy infrastructure. As countries expand solar and wind power and invest in electrification, demand for the metal is expected to rise.

That makes copper strategically important for Saudi Arabia itself. The Kingdom is investing heavily in renewable energy, manufacturing, infrastructure and technology under Vision 2030. Domestic access to copper and other critical minerals could help supply some of these expanding industries.

The Aramco-Maaden venture has therefore identified copper as its primary exploration focus, while also looking for zinc, lead and rare-earth elements.

Mining could support Saudi manufacturing

Saudi Arabia's objective is not limited to digging minerals out of the ground and exporting them.

The broader plan involves developing processing, refining and manufacturing capabilities so that more of the economic value generated by the resources remains inside the country.

This could create a supply chain stretching from geological exploration and mining to mineral processing, industrial production and exports. Such an approach would fit closely with Vision 2030, which aims to build a more diversified economy and expand non-oil industries.

Saudi officials have increasingly described mining and minerals as a major pillar of the national economy alongside the country's traditional energy industries.

Gold, phosphate and other resources add to the opportunity

Copper is only one part of Saudi Arabia's mineral story. The Kingdom also has significant deposits of gold, phosphate, bauxite, zinc and other minerals.

Saudi Arabia's phosphate resources have already helped it establish a significant position in the global fertilizer industry. Gold mining is also expanding, with Ma'aden operating several mines and pursuing new exploration projects.

Official Saudi sources say the country has identified dozens of mineral types and numerous mineral belts across its territory. The government's objective is to turn these resources into commercially viable projects capable of attracting domestic and international investment.

The country's geographical position is another advantage. Saudi Arabia has ports, highways, industrial cities, power infrastructure and transportation networks that can support large-scale mining and manufacturing projects.

Why supply-chain security matters

The mining strategy also has a geopolitical dimension.

The global race for critical minerals has intensified because countries are seeking secure supplies of materials needed for electric vehicles, renewable energy, advanced electronics, defence systems and other technologies.

China currently dominates the global supply of many rare-earth materials, while other countries hold major positions in copper and other minerals. For Saudi Arabia, developing domestic resources could provide an additional source of supply and reduce exposure to disruptions caused by wars, trade restrictions or political disputes.

The Kingdom does not necessarily need to become the world's largest supplier of every mineral. Establishing a reliable domestic or regional source could itself provide a strategic advantage.

Vision 2030 gives mining a bigger role

Saudi Arabia's mining ambitions are closely connected to Vision 2030, the Kingdom's long-term economic transformation program.

The government wants to attract investment into mining, improve geological mapping, expand exploration and develop industries that use locally available raw materials.

Officials have also highlighted the role of foreign investment in the sector. Saudi Arabia has been working to make its mining regulations more attractive to international companies and has promoted partnerships aimed at bringing capital, technology and expertise into the industry.

The country's existing infrastructure could make this transition easier. Roads, electricity networks, ports and industrial facilities can help mining companies move raw materials from remote areas to processing plants and export terminals.

From oil wealth to mineral wealth?

Saudi Arabia's economic transformation does not mean that oil is losing its importance overnight. Hydrocarbons remain central to the country's economy and government finances.

But Riyadh increasingly wants its future growth to come from a wider range of sectors.

Mining offers an unusual opportunity because it connects several of those sectors. Mineral extraction can support manufacturing; manufacturing can support exports; and critical minerals can supply renewable energy and technology projects.

The strategy could therefore create an economic chain much larger than the value of the minerals themselves.

A long-term bet with major challenges

Despite the enormous potential, turning geological resources into a major economic industry will not happen quickly.

Mining projects require large amounts of capital, detailed exploration, environmental assessments, processing facilities, skilled workers and reliable transport networks. Discovering a mineral deposit does not automatically mean that it can be mined profitably.

Saudi Arabia will also need to demonstrate that its mining expansion can meet environmental and sustainability standards while managing water use and the impact of large-scale industrial activity in desert regions.

The success of the strategy will ultimately depend on how effectively the Kingdom moves from exploration to production and then from raw materials to higher-value manufacturing.

Saudi Arabia's next economic chapter

The latest Aramco-Maaden agreement shows that Saudi Arabia is becoming more serious about turning its mineral potential into an industrial advantage.

The country's estimated $2.5 trillion mineral wealth provides a huge starting point, but the real opportunity lies in building an ecosystem around those resources.

If the Kingdom succeeds in developing mines, processing facilities, manufacturing capacity and export networks, mining could become much more than another item in Saudi Arabia's commodity portfolio.

It could help supply the country's renewable-energy and manufacturing ambitions, create new export opportunities and reduce dependence on imported raw materials.

For a country whose modern economic rise was built on oil beneath the desert, the next chapter could increasingly be written in the rocks beneath its surface.

KEY FACTS

Item

Details

Estimated mineral wealth

Around $2.5 trillion

Major geological region

Arabian Shield

New exploration zone

Zone-4 / Transition Zone

Exploration area

Around 182,000 sq. km

Ma'aden stake in JV

51%

Aramco stake in JV

49%

Main exploration target

Copper

Other targets

Zinc, lead and rare-earth elements

Main strategy

Vision 2030

Key industries

Mining, processing, manufacturing and renewable energy

SPECIAL COMMENTARY

Can mining become Saudi Arabia's new economic pillar?

Saudi Arabia's mining strategy is significant because Riyadh is not simply searching for another commodity to export. The larger ambition is to build an industrial ecosystem around minerals.

The country already possesses many of the ingredients needed for such a transformation: capital, infrastructure, energy, industrial facilities and a strategic geographical location. What remains to be proven is whether geological potential can be converted into commercially successful mines and, more importantly, high-value manufacturing.

The partnership between Aramco and Ma'aden is particularly notable because it combines geological data and technology with mining expertise. If advanced computing and AI can make exploration faster, the Kingdom could accelerate the discovery of deposits that might otherwise take years to identify.

However, mining is a long-term business. Large discoveries require years of investment before they become productive assets. Environmental management, workforce development and processing capacity will be equally important.

If Saudi Arabia manages to move beyond extraction and develops refining, processing and manufacturing industries around its mineral resources, mining could become a genuine second engine of industrial growth.

Oil made Saudi Arabia rich. The country's mineral strategy now aims to ensure that its next phase of prosperity does not depend on oil alone.

ALSO READ

Saudi Arabia's Vision 2030 and its strategy to expand non-oil industries.

Aramco and Ma'aden's new mineral exploration partnership.

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