Saudi Arabia has significantly revised its estimates for the value of untapped mineral resources, marking a substantial increase from $1.3 trillion in 2016 to an impressive $2.5 trillion. The announcement was made during the Future Minerals Forum in Riyadh, where lucrative deals were being finalized, as reported by ministers to CNBC.
Minister of Mineral Resources and Industry, Bandar Al Khorayef, expressed excitement over this development, attributing it to the strategic efforts of the past four years. The newfound mineral wealth includes gold, copper, phosphate, and rare earth elements, presenting an additional source of prosperity alongside the nation's substantial oil reserves.
At the annual minerals forum, the Saudi government unveiled plans to sign $20 billion in deals, emphasizing the role of recent legal and business reforms in facilitating this financial windfall. Al Khorayef highlighted the impact of revamped investment laws, resulting in the issuance of approximately 4,500 licenses within the last two years.
He underscored the significance of expenditures in the geological survey program, providing valuable information on various reserves. The minister emphasized that the figures are based on only 30% of the Arabian shields exploration, with intentions to reach 100%. The Arabian-Nubian shield, rich in geological history, spans the western Arabian peninsula and northeast Africa.
Saudi Arabia is actively promoting mining through the development of 33 new exploration sites, with plans to grant over 30 mining exploration licenses to foreign investors in 2024. This concerted effort aligns with the Vision 2030 program, spearheaded by Crown Prince Mohammed bin Salman, aiming to diversify the economy, attract foreign investment, and create employment opportunities for the youth. The government sees mining as the third industrial pillar crucial for reducing reliance on hydrocarbons.
Minister Al Khorayef expressed optimism about meeting Vision 2030 goals, acknowledging that progress in sectors like tourism is swifter. He highlighted the ongoing projects in the pipeline, both in private sector investment and infrastructure, as evidence of the nation's commitment to achieving its targets.
The minister emphasized the importance of accelerating projects and working closely with investors to address their needs. As part of this commitment, Saudi Arabia introduced a new mineral exploration incentive program with a budget exceeding $182 million.
Minister Al Khorayef expressed satisfaction with the progress, noting that policies, enablers, and infrastructure are in place, emphasizing that the focus now is on effective implementation.
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